Telecommunications provider Optus has been fined $100 million for unconscionable sales conduct in an official Federal Court order issued on Wednesday.

The penalty was previously proposed by the Australian Competition and Consumer Commission (ACCC). Optus has already agreed to pay the fine, and signed an undertaking to compensate impacted consumers and improve its internal systems.

In a joint submission to the court, the company admitted it acted unconscionably when selling mobile phones and contracts, in breach of the Australian Consumer Law.

The ACCC investigation showed that the conduct affected over 400 consumers and occurred at 16 Optus stores between August 2019 and July 2023.

In many cases, the consumers did not want or need, could not use or could not afford what they were sold, with some even pursued for debts after these sales.

Many of these consumers were vulnerable or experiencing disadvantages, such as having a mental disability, being financially dependent or unemployed, or having limited financial literacy. Many of them were also First Nations Australians from regional and remote locations.

The sales staff were found to use tactics like putting undue pressure on consumers to purchase a large number of products, failing to explain relevant terms and conditions, and misleading consumers to believe that goods were free.

In his decision, Justice O’Sullivan said the consequences of Optus’s conduct were “profound”.

“Numerous individuals experienced severe financial harm, emotional distress, and social shame. Particularly damaging was the heightened risk of losing access to essential telecommunications services when faced with inflated service costs,” he added.

This case follows similar ACCC action against Telstra, which was ordered in May 2021 to pay a $50 million penalty for engaging in unconscionable conduct when selling mobile contracts to 108 First Nations consumers.