The companies notified were: Samsung Brasil, DL Comércio e Indústria de Produtos Eletrônicos (Xiaomi distributor), LG Brasil, Motorola Mobility, Positivo, Multilaser, TCL Semp Eletrônicos and Asus Brasil. All of them have ten days to send explanations to Senacon.
Manufacturers must inform whether new devices are being sold with pre-installed betting apps.
If the answer is 'yes', they must state which games are pre-installed, whether the manufacturers have contracts or commercial agreements with gambling companies and what the terms are, and whether consumers are informed about their rights, the terms of use of the applications and the risks posed by gambling (such as addiction and debt).
The department wants to know whether the manufacturers are upholding the rights and guarantees of the consumer as provided for by law.
Requested clarifications
The notifications require that companies clarify the following questions within ten days:
a) Are the new cell phones being sold with pre-installed gambling applications?
b) What are the pre-installed gambling games, if the answer is yes?
c) Does the manufacturer have any contract or commercial agreement with gambling companies to sell cell phones with these applications?
If such agreements exist, Senacon requests the following details:
- What are the terms of the signed contracts?
- Are consumers being clearly informed about their rights, the conditions and terms of use of the applications, as well as the risks of debt and gambling addiction (a medical condition characterized by the uncontrollable desire to continue gambling, recognized by the World Health Organization) associated with betting?
- Are there mechanisms to prevent the use of these applications by children, adolescents or other vulnerable groups, such as the elderly and people with gambling addiction?
Samsung also made a statement, clarifying that it does not preload betting applications and that, during the initial configuration, it only suggests popular applications, and installation only occurs with the user's authorization.
According to Wadih Damous, National Secretary for Consumer Affairs, the use of applications without the user's consent can be considered an abusive practice. "We cannot allow companies to violate the right to freedom of choice and clear information. Pre-installing applications, without due consent and transparency, can be considered an abusive practice, especially when it affects more vulnerable consumers, such as children and the elderly."
In addition to the clarifications, companies must forward copies of possible contracts with betting companies. Anyone who fails to comply with the request may be penalized with fines or administrative proceedings.
Source: GMB