The National Consumer Secretariat (Senacon), linked to the Ministry of Justice and Public Security, has notified eight mobile phone manufacturers requesting explanations about the possible pre-installation of betting apps on new devices sold in Brazil. The companies have 10 days to provide clarifications.
The notified companies were: Samsung Brazil, DL Comércio e Indústria de Produtos Eletrônicos (distributor of Xiaomi), LG Brazil, Motorola Mobility, Positivo, Multilaser, TCL Semp Eletrônicos and Asus Brazil. The companies have a deadline of ten days to send the explanations to Senacon.
The manufacturers must inform whether new devices are being sold with pre-installed betting apps.
If the answer is affirmative, they must specify which are the pre-installed games, whether the manufacturers have contracts or commercial agreements with gambling companies and what the terms are, and whether consumers are informed about rights, the terms of use of the apps, and the risks posed by betting (such as addiction and indebtedness).
The secretariat wants to know if the manufacturers are safeguarding the consumer rights and guarantees provided by law.
Requested Clarifications
The notifications require that the companies clarify, within a period of ten days, the following issues:
a) Are the new mobile phones being marketed with pre-installed betting apps?
b) What are the pre-installed betting games, if the answer is affirmative?
c) Does the manufacturer have any contract or commercial agreement with betting companies to market mobile phones with these apps?
If such agreements exist, Senacon requests 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 ludopathy (a medical condition characterized by an uncontrollable desire to keep gambling, recognized by the World Health Organization) 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 people with gambling dependencies?
Samsung has stated that it does not pre-load betting apps and that, during the initial setup, it only suggests popular apps, with installation occurring only with the user's authorization.
According to Wadih Damous, National Consumer Secretary, the practice of installing apps without user consent can be considered an abusive practice. “We cannot allow companies to violate the right to freedom of choice and clear information. The pre-installation of apps, without due consent and transparency, may constitute an abusive practice, especially when it affects more vulnerable consumers, such as children and the elderly”.
In addition to the clarifications, the companies must send copies of possible contracts with betting companies. Those who fail to comply with the request may be penalized with fines or administrative proceedings.
Source: GMB
