An internal investigation found that sales staff pressured more than 400 people, many from disadvantaged backgrounds, into unaffordable mobile phone plans between 2019 and 2023. Despite warnings from internal reports, Optus executives did not take immediate action. The company has agreed to pay a $100 million fine, although the court is still assessing whether this amount reflects the full impact on affected customers.
Problems were first identified in late 2019 when an internal investigation uncovered extensive misconduct at an Optus store in Mt Isa, Queensland. Employees were found to have used falsified documents and avoided credit checks to close sales. Even by early 2020, when these issues were confirmed in a final internal report, Optus executives had not made meaningful changes.
By mid-2024, Optus stopped chasing unpaid debts linked to the fraudulent contracts. However, many customers had already spent years dealing with debt collectors. One person with an intellectual disability had unknowingly signed up for seven mobile contracts. Another customer received more than 800 calls from debt collection agencies. Many affected individuals found themselves unable to access credit or purchase essential items such as vehicles.
Optus has committed to compensating victims, improving internal governance and allowing an independent audit of its behaviour. It has repurchased 34 licensed stores and entered into a court-enforceable agreement with the competition watchdog. Despite these moves, pressure is mounting for regulators like the Australian Communications and Media Authority to take over enforcement responsibilities, as confidence in industry self-regulation continues to decline.
