(Reuters) – Australia’s competition watchdog is taking Singapore Telecommunications-owned Optus to court, alleging it engaged in “misconduct” while selling mobile phones and plans, particularly to vulnerable customers.
The Australian Competition and Consumer Commission (ACCC) on Thursday alleged that Optus’ conduct disproportionately impacted consumers and its practices were, in a way, backed by remuneration for sales staff.
“In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers,” ACCC Chair Gina Cass-Gottlieb said in a statement.
The case against Optus involves allegations that the telecommunications provider acted “unconscionably” in its dealing with around 429 customers by engaging in inappropriate sales conduct.
The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance programme and costs.
The alleged conduct involves 363 customers from two Optus Darwin stores, 42 customers from the Optus Mount Isa store and 24 individual customers from store locations across Australia.
“We have taken disciplinary action (including terminations) against staff whom we determined were responsible for this misconduct involving vulnerable customers,” Optus Interim CEO Michael Venter told Reuters in an emailed response.
He said majority of the sales occurred at three licensee-operated Optus stores, and the company is remediating affected customers by providing refunds, waiving outstanding debts and enabling them to keep devices.
(Reporting by Rishav Chatterjee and Ayushman Ojha in Bengaluru; Editing by Anil D’Silva, Alan Barona and Subhranshu Sahu)
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