Brazilian Prosecutors Launch Investigation Into Blaze Over Alleged Consumer Protection Violations

The Public Prosecutor’s Office of Brazil has initiated a civil process against online betting operator Blaze due to alleged abuse and possible violation of the consumer law. The investigation is being carried out by the 1st Consumer Protection Prosecutor’s Office (Prodecon), which aims to verify whether the activities of the online operator meet the provisions of Brazil’s consumer laws and betting laws.

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The investigation concerns Foggo Entertainment Ltda., which is the company running Blaze in Brazil. Should the investigators find proof of consumer rights violation, the operator may face serious consequences, up to a claim for collective moral damages amounting to BRL 120 million.

Complaints Prompt Investigation of Operator’s Practices

The investigation has been started following the analysis of technical reports and complaints regarding more than 42,000 grievances of consumers concerning the operator. The investigators are examining the reports of arbitrary account suspension, retention of balances without justification, and possible abuse, including the unreasonable rollover requirement associated with bonuses.

Besides, the Public Prosecutor’s Office is considering the way the operator handles customers’ personal data and possible misleading advertisements. The main goal of the investigation is to clarify whether the commercial practices of Blaze comply with Brazilian consumer protection laws and other requirements for licensed betting operators.

Request for Information on Responsible Gambling and Marketing

One of the initial steps made by Prodecon has been the collection of all the documents related to the company published on the consumer complaint portal Reclame Aqui in the last 12 months. The operator has been asked to provide documentation of their policy concerning the management of accounts, criteria for closure of the account, conditions for withholding customers’ money, corporate structure, and anti-money laundering measures.

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Besides, the Public Prosecutor’s Office has requested information about the measures implemented by Blaze for responsible gambling, including self-exclusion tools to prevent problem gambling and debts from betting. Such measures became a must for licensed operators in Brazil.

Influencer Endorsement Agreements Included in Investigation

The investigation includes not only the examination of the operator’s policies but also its advertising strategy. The office has asked to provide copies of the endorsement agreements signed by the company with such celebrities as Neymar Jr., Virginia Fonseca, Lucas Lira, and Bruna Unaik.

In particular, prosecutors are interested in the evaluation of marketing guidelines applied in the course of the promotion. Specific attention will be paid to the use of such wording as “extra income” as a potentially misleading advertisement.

In parallel with the investigation, the National Consumer Secretariat (Senacon) has been given 20 days to present the history of administrative proceedings concerning Blaze.

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Source: iGaming Brasil