Optus is back in the Federal Court over unconscionable sales to vulnerable customers.

A proposed A$100 million penalty is under review as fresh detail emerges about missed internal warnings. The AFR reports executives were briefed on suspected fraud in late 2019 and early 2020.

Nonetheless, the Singtel-owned telco continued to pursue debts, in some cases through third-party collectors, until mid-2024.

The ACCC alleges that from 2019–2023, Optus staff in multiple stores signed up over 400 individuals, many of them Indigenous Australians, to phones, plans and accessories they didn’t want or couldn’t afford, then pursued them for repayment.

In 2021, the Federal Court fined Telstra $50 million for similar misconduct involving Indigenous customers.

The watchdog launched proceedings against Optus in October 2024.

In June 2025, Optus agreed to a $100m penalty, subject to court approval, and admitted the conduct.

Alongside the penalty, Optus has entered an enforceable undertaking. The company said it would compensate affected customers, overhaul sales incentives and complaints handling, submit to independent audits, and buy back 34 licensee stores in NT, QLD and SA.

Both Optus and Telstra have stepped over the line with sales tactics in recent years

Optus CEO Stephen Rue issued a public apology. The company committed to a $1 million donation to organisations facilitating the digital literacy of First Nations Australians.

Nonetheless, consumer groups want stronger rules and tougher punishment for businesses that break them.

The Australian Communications Consumer Action Network (ACCAN), the peak advocacy body for Australian telco customers, is pushing the government to have the Australian Communications and Media Authority (ACMA) directly regulate telco sales practices.

ACCAN argues the current industry code has failed vulnerable customers, so expect them to keep lobbying for better protections, irrespective of the court’s final orders.

If the court signs off on the $100m and the undertaking, expect ongoing remediation programs, changed KPIs, tighter credit checks and compliance training across Optus’ channel footprint.

Competitors will also likely sharpen their ‘responsible sales’ messaging as the federal government considers whether heavier-handed regulation is needed.