The ACCC announced last week that it is taking court action against Optus as a result of alleged unconscionable dealings with 429 individual consumers.

The cases primarily occurred in two Optus stores in Darwin, with some cases also in Mount Isa and in other stores nationwide.

Luke Coleman, CEO of Communications Alliance, which represents telecoms service providers and other industry players, did not mention its member Optus directly but left no doubt as to the body's stance.

"Unconscionable conduct in sales - particularly to vulnerable customers - is unacceptable behaviour," Coleman said.

"The court proceedings announced by the ACCC are a clear reminder that telcos are subject to strong direct regulation with the possibility of heavy penalties, in this case through the Australian Consumer Law."

However, Coleman stopped short of acceding to calls for tighter telecoms industry regulations.

"Calls for additional direct regulation as a result of today’s announcement miss the point: existing laws are working exactly as they should," he said.

"Australian regulators are tigers with teeth - they have strong enforcement powers, and they are not afraid to use them.

"Even with these laws in place, industry is taking further action to strengthen consumer protections around sales practices.

"Communications Alliance is currently updating the Telecommunications Consumer Protection (TCP) Code including a new section focussed on responsible sales practices, with consumer remedies and claw-back of sales incentive payments when mis-selling is identified."

Meanwhile the message from the consumer side of the industry was somewhat stronger.

Carol Bennett CEO of telecoms consumer advocacy body ACCAN savaged Optus for its alleged sales misconduct and, in contrast to Comms Alliance, called for tougher consumer regulations.

"Consumers around the country will be feeling angry and betrayed at the news that Optus have allegedly taken advantage of consumers, predominately First Nations, regional consumers, consumers with a disability, and low-income consumers, in a display of gross misconduct," Bennett said.

"As we have stated, this court case should spur fundamental changes in the way our sector is regulated.

"If the ACCC allegations are proven in court, there is no doubt that significant reforms are needed to reinforce consumer protections and strengthen the powers and penalties available to the communications regulator."