Telstra Admits Mis-selling Phone Plans to Indigenous Australians

Telstra Corp. faces the second-biggest penalty ever imposed for breaching consumer laws in Australia after admitting mis-selling mobile-phone contracts to more than 100 Indigenous Australians who couldn’t afford the plans or understand the terms and were plunged into debt.

The nation’s former phone monopoly has admitted unconscionable conduct in the sale of the plans between 2016 and mid-2018 and faces penalties of A$50 million ($37 million) if the Federal Court rules such a fine is appropriate, the Australian Competition and Consumer Commission said in a statement Thursday.

“This case exposes extremely serious conduct which exploited social, language, literacy and cultural ...