Optus could face a $100 million penalty after admitting to unconscionable conduct that saw vulnerable and largely First Nations customers in remote areas pressured into buying phone products they neither needed nor could afford.

The Australian Competition and Consumer Commission (ACCC) brought the court action, with Optus now admitting its staff targeted more than 400 customers inappropriately across several stores between August 2019 and July 2023. The fine, agreed to by both the ACCC and Optus, will be subject to Federal Court approval.

"In many instances, the consumers did not want or need, could not use or could not afford what they were sold, and in some cases consumers were pursued for debts resulting from these sales," the ACCC said.

The watchdog found many affected were already facing disadvantages, including living with disability, having limited English, or financial hardship.

A number of the consumers were Indigenous Australians from regional, remote and very remote parts of Australia, it added.

Optus Mobile has admitted to unconscionable conduct when selling mobiles and phone plans to hundreds of consumers, after ACCC court action. Many consumers were vulnerable or experiencing disadvantage and did not want or need what they were sold. https://t.co/7eiquXBAam pic.twitter.com/XUFdVRjZLL

— ACCC (@acccgovau) June 18, 2025

Optus admitted staff used "undue pressure" to sell multiple products, often misrepresenting them as "free or included" in bundles. Staff also failed to properly explain terms to vulnerable customers and, in some cases, knowingly signed people up in areas with no Optus coverage.

In Mount Isa, where over one-fifth of residents are Indigenous, Optus pursued debts even after senior staff were aware contracts may have been fraudulently created.

The ACCC said some debts were passed on to third-party collectors and continued to be pursued as late as July 2024, despite Optus knowing the sales may have involved fraud.

One particularly troubling example involved an Indigenous customer from a remote area with no Optus coverage, who was pressured into signing up for two phones, three plans, accessories, and other services — totalling over $3,800 — despite not speaking English as a first language.

A 2019 internal investigation revealed 82 contracts were likely created without customer knowledge.

"The report identified 82 contracts that appeared to have been fraudulently completed without consumer knowledge," the ACCC stated.

"Some consumers whose identities were associated with the relevant customer accounts were subject to threats of legal proceedings being commenced against them and of reporting defaults to credit reporting bodies."

ACCC Deputy Chair Catriona Lowe condemned the actions.

"Many of these consumers who were vulnerable or experiencing disadvantage also experienced significant financial harm. They accrued thousands of dollars of unexpected debt and some were pursued by debt collectors, in some instances for years."

"Optus has admitted to this conduct and has appropriately committed to changing its systems. It has begun compensating affected consumers," she added.

Optus Chief Executive Stephen Rue said the company had failed its customers, noting the company "should have acted more quickly when the misconduct was first reported".

"I would like to sincerely apologise to all customers affected by the misconduct in some of our stores," he said.

Mr Rue said he was now overseeing company-wide changes, including leadership restructuring and staff dismissals where misconduct was identified.

Optus has also undertaken to make a $1 million donation to an organisation facilitating digital literacy of First Nations Australians.

Consumers who think they may have been impacted by conduct similar to that outlined in the undertaking can call Optus's specialist customer care team on 1300 082 820 for further information or support.