Cartel Watchdogs Sue Optus: Sales Methods Criticized

The Australian Competition Authority has initiated legal proceedings against the telecommunications provider Optus, owned by Singapore Telecommunications. The allegation is that the company has engaged in unfair practices in the sale of mobile phones and plans, particularly affecting vulnerable customers. The Australian Competition and Consumer Commission's (ACCC) accusation is especially serious, claiming that Optus's conduct has had "disproportionate" effects on consumers. These contentious practices were allegedly supported by an incentive system for sales staff. However, according to Gina Cass-Gottlieb, the chair of the ACCC, the company appeared more focused on protecting its financial interests—at the expense of consumers and sometimes by reclaiming commissions. Compensation for the affected customers was lacking. The charges focus on the alleged unfair conduct towards a total of 429 customers. This includes 363 customers from two Optus stores in Darwin, 42 customers from the Optus store in Mount Isa, and 24 other customers from various locations in Australia. Demands include, among other things, explanations, criminal actions, consumer compensation, publications, a compliance program, and the coverage of court and legal costs. Optus has not yet responded to the request for comment.