Federal Court confirms record penalty against Optus, a clear warning to telco sector

Financial counsellors welcome today’s landmark decision by the Federal Court, which has endorsed a record $100 million penalty against Optus for unconscionable conduct.

Financial Counselling Australia (FCA) says it sends a strong message to all telecommunications providers that mis-selling to vulnerable customers will no longer be tolerated.

For some time, financial counsellors have been raising the alarm about the harm caused by Optus mis-selling products to some of the most vulnerable people in our community. Those affected include people with intellectual disability, cognitive impairment, or low financial confidence. Many affected were First Nations consumers living in remote areas with no mobile coverage.

“This isn’t just about a fine. It’s about holding those who have repeatedly failed vulnerable people to account,” said Peter Gartlan, Co‑CEO of FCA.

“This sets a sector‑wide precedent: mis‑selling and failure in consumer protection will attract severe consequences.

“This judgement underlines the need for structural reform: for regulatory frameworks, corporate culture and enforcement mechanisms that protect, not exploit, the most vulnerable among us.”

The Federal Court’s endorsement of the ACCC’s action brings renewed hope that those affected will receive fair treatment and some measure of justice. The ACCC’s remediation program must now be fully implemented in a timely, fair manner.

“We recognise the seriousness of today’s decision for all consumers, especially those in First Nations and remote communities,” said Lynda Edwards, Director of First Nations Policy at FCA.

“This sort of behaviour is simply not acceptable, and telcos can no longer treat First Nations people this way,” Ms Edwards said.

More broadly, the Federal Court’s ruling amplifies calls for stronger, enforceable regulation in the telco sector. The existing Telecommunications Consumer Protections Code has failed to prevent such systemic misconduct. It is imperative that rules are tightened to ensure consumer protections are real and meaningful.

ENDS

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