BENGALURU – Australia’s competition watchdog is taking Singtel-owned Optus to court, alleging it engaged in misconduct while selling mobile phones and plans, particularly to vulnerable customers.
The Australian Competition and Consumer Commission (ACCC) on Oct 31 alleged that Optus’ conduct “disproportionately” impacted consumers and that its practices were, in a way, backed by remuneration for sales staff.
“In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers,” ACCC chair Gina Cass-Gottlieb said.
The case against Optus involves allegations that the telecommunications provider acted unconscionably in its dealing with 429 customers by engaging in inappropriate sales conduct.
The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance programme and costs.
The alleged conduct involves 363 customers from two Optus Darwin stores, 42 customers from the Optus Mount Isa store and 24 individual customers from store locations across Australia.
“We have taken disciplinary action (including terminations) against staff whom we determined were responsible for this misconduct involving vulnerable customers,” Optus interim chief executive Michael Venter told Reuters in an e-mailed response.
He said the majority of the sales occurred at three licensee-operated Optus stores, and the company is remediating affected customers by providing refunds, waiving outstanding debts and enabling them to keep their devices.
In a statement filed with the Singapore Exchange on Oct 31, Optus said: “At this stage, Optus Mobile is not able to determine the quantum of penalties, if any, that could arise. Any question regarding penalties is ultimately a matter for the Federal Court to determine.” REUTERS
With additional information from The Straits Times