The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Optus, alleging unconscionable conduct in the sale of phone products to vulnerable customers.

Reports suggest that Optus pressured customers into purchasing expensive phones and accessories without verifying their mobile network coverage, resulting in debt collection for unpaid bills.

The ACCC claims that Optus pursued debts from consumers who were often unemployed or lacked financial literacy, exacerbating their financial hardships.

Many of the affected consumers are described as vulnerable, including individuals with mental disabilities, limited financial literacy, or those from First Nations and culturally diverse backgrounds.

These individuals reportedly experienced significant financial losses and emotional distress due to aggressive debt collection practices.

ACCC chair Gina Cass-Gottlieb expressed shock at the alleged conduct and indicated that the commission would seek substantial penalties in court, referencing a previous $50 million fine against Telstra for similar issues.

Optus interim CEO Michael Venter acknowledged the misconduct, stating that disciplinary actions have been taken against responsible staff members, including terminations.

In response to the allegations, Optus has implemented changes such as improved credit controls and mandatory training for staff on handling vulnerable customers.

Optus is also working to remediate affected customers by offering refunds, waiving debts, and allowing them to keep their devices.

Consumer advocacy group ACCAN condemned Optus' actions as 'unconscionable' and called for government intervention to prevent similar occurrences in the future.

Communications Minister Michelle Rowland emphasized the seriousness of the allegations and reiterated the government's commitment to ensuring fair practices within the telecommunications sector.

This legal action comes as Optus continues to recover from a significant cybersecurity breach in 2022 that compromised the personal information of millions of customers, further tarnishing its reputation.