Senacon (The National Consumer Secretariat) has notified eight smartphone manufacturers following complaints that the brands are selling devices with pre-installed sports betting applications.
The agency from the Ministry of Justice requested clarifications within ten days regarding the terms of potential agreements between the companies and the betting platforms, to assess whether there is any abusive commercial practice.
“We cannot allow companies to violate the right to freedom of choice and clear information. The pre-installation of applications, without due consent and transparency, may constitute an abusive practice, especially when it affects more vulnerable consumers, such as children and the elderly,” stated Wadih Damous, National Consumer Secretary, in a Senacon announcement.
According to a government press release the notifications were issued by the Department of Consumer Protection and Defence (DPDC) and request that the companies clarify the existence of possible agreements between smartphone manufacturers and gambling companies. The notifications required the companies to clarify, within a period of ten days, the following questions:
Are new smartphones being sold with pre-installed betting apps?
What are the pre-installed betting games, if applicable?
Does the manufacturer have any contracts or commercial agreements with betting companies to sell smartphones with these apps?
If such agreements exist, Senacon requested the following details:
What are the terms of the contracts signed?
Are consumers being clearly informed about their rights, the conditions and terms of use of the apps, as well as the risks of indebtedness and gambling addiction associated with betting?
Are there mechanisms to prevent the use of these apps by children, teenagers, or other vulnerable groups, such as the elderly and individuals with gambling dependencies?
Concerns regarding the protection of more vulnerable groups, such as children, teenagers, the elderly, and those susceptible to gambling addiction, are emphasized in the document.
“We need to be cautious in light of the new betting landscape in Brazil. The consumer’s vulnerability must be recognized, especially considering the risks of addiction and indebtedness,” emphasized Vitor Hugo do Amaral, director of the DPDC.
In addition to notifying the companies for clarifications, Senacon requested that they present copies of the contracts signed between smartphone manufacturers and betting companies for a more detailed analysis of the terms. The notification warns that failure to comply with the request may result in sanctions for disobedience, such as fines and the initiation of administrative proceedings, as provided for in the CDC.
The notified companies are Samsung Brazil, DL Comércio e Indústria de Produtos Eletrônicos (Xiaomi), LG Brazil, Motorola, Positivo, Multilaser, TCL Semp Electronics, and Asus Brazil.