TIO welcomes ACCC Federal Court proceedings against Optus for alleged unconscionable conduct

The Telecommunications Industry Ombudsman (TIO) welcomes today’s announcement from the Australian Competition and Consumer Commission (ACCC) that they have commenced proceedings in the Federal Court against Optus Mobile Ltd for alleged unconscionable conduct.

Between 2022 and 2024, the TIO's systemic investigation function identified concerning practices involving Optus’ sale of telco goods and services. The TIO found hundreds of consumers were supplied with products that they did not want or need, or were led to be believe were ‘free’. The TIO referred the conduct by Optus on three occasions to the ACCC.

The TIO’s investigation revealed that many consumers, some of whom were represented by Financial Counsellors, were experiencing a form of vulnerability including disability, low digital literacy, language barriers, or were on government support.

Comments attributable to Ombudsman Cynthia Gebert:

“The behaviours we unearthed in our investigations are deeply troubling. My expectation is that telco consumers are treated with respect, dignity, and understanding.

“This action by the ACCC demonstrates the positive power of the consumer protection eco-system. Strong external dispute resolution can result in effective regulatory action that makes a meaningful difference in the lives of people.

“Addressing unconscionable conduct is a critical part of lifting trust and confidence in the telco sector. We must have confidence that the essential products and services we rely on are sold in a manner that complies with Australian Consumer Law."

ENDS

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