Telstra issued $50 million fine for breaking Australian Consumer Laws

Telstra has been fined $50 million by the Federal Court for unconscionable treatment of Indigenous phone plan customers.

The large penalty comes after the telco giant admitted it sold phone plans to more than 100 Indigenous Australians in remote areas who couldn't afford it or didn't understand the contract.

Australia's consumer watchdog found Telstra's sales practices had caused "severe personal financial hardship and great distress".

ACCC chair Rod Sims said Telstra executives failed to act quickly enough to stop these illegal practices when alerted to them.

“We expect much better behaviour from large businesses like Telstra,” Mr Sims said.

Telstra fined for unconscionable treatment of Indigenous Australians

Racking up an average debt of $7,400 per person and perused by debt collectors many of the customers caught up in the scandal were unemployed and relied on government benefits.

The fine is the second-largest penalty ever imposed on a company for breaking Australian consumer law.

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