The Australian Competition and Consumer Commission (ACCC) commenced proceedings against Optus for breaching section 12DA of the Australian Securities and Investments Commission (ASIC) Act 2001. Allegedly, at least 240,000 consumers have been impacted by a third-party billing service that added a charge for premium content that consumers did not agree to purchasing, such as games, ringtones and votes in TV programs. As Optus did not ask for payment details or verify the account-holder’s identity, many charges were accrued without the account-holder’s knowledge, for example by children or other members of their household.
This billing scheme charged customers a total of $195 million and earned Optus $66 million in revenue. Optus has admitted to knowing about the misleading conduct since at least April 2014 and has issued $12 million of refunds so far. Likewise, the third-party providers have provided $19 million of refunds to affected consumers.
The ACCC has sought orders from the Federal Court to hit Optus with a $10 million penalty for their actions. The orders sought in relation to Optus by the ACCC echo the suit placed earlier this year against Telstra, who were penalised $10 million and have refunded more than $9.3 million to customers.
Reforms to the ASIC Act in May 2018 may mean that companies engaged in such conduct in the future could face penalties upwards of $100 million. Such moves towards greater penalties for misconduct committed by large service providers are reflective of a refocussing on the rights of consumers.
In the meantime, consumers on any mobile network are advised to check their mobile accounts, and contact the mobile carrier if they find unauthorised charges. If you have any queries relating to the issues featured in this article, please do not hesitate to contact Freedman & Gopalan Solicitors on 02 8917 8700.