Telstra has copped a $50m fine from the ACCC for unfairly tergetting indigenous Australians with post paid phone contracts
Staff in five Telstra licensed stores manipulated credit assessments, such as saying the customers were employed, to sign them up.
Once the debts were accumulated, Telstra then referred a portion of them to debt collectors.
The average debt was $7,400 per customer
According to the ACCC chair Rod Sims said.
“Many of the consumers spoke English as a second or third language, had difficulties understanding Telstra’s written contracts, and many were unemployed and relied on government benefits or pensions as the primary source of their limited income. Some lived in remote areas where Telstra provided the only mobile network.”
“This case exposes extremely serious conduct which exploited social, language, literacy, and cultural vulnerabilities of these Indigenous consumers,”