Optus Cancels Plan for Independent Consumer Advocate After Management Changes

Optus has withdrawn its commitment to appoint an independent consumer advocate. The plan was first introduced after the company received a $100 million fine for pressuring vulnerable customers into signing up for unwanted services. The updated strategy now focuses on internal reform in an effort to rebuild public trust, although it may raise concerns about the company's transparency.

Optus, which is owned by Singapore-based Singtel, initially promised to bring in an independent advocate after the company was accused of selling mobile plans and devices to more than 400 disadvantaged customers who either could not afford or did not understand them. The Australian Competition and Consumer Commission (ACCC) ruled that the behaviour was unconscionable, leading to one of the largest fines ever issued within the telecommunications sector in Australia.

The company changed direction after installing a new CEO in November. Under this new leadership, which includes a former NBN Co executive, Optus has launched a new business division, assigned a senior executive to oversee support for vulnerable and high-needs customers, and given its new compliance manager the responsibility to improve customer protections.

Other companies, such as Telstra along with several major banks, have successfully implemented independent consumer advocate roles. In contrast, Optus has opted to use a broader internal network rather than relying on a single external representative. While this internal approach could reshape how customer protections are managed, some industry experts caution that it might be viewed as a step backwards by regulators and the public.

Source: Australian Financial Review, Mirage News, Australian Competition and Consumer Commission