Consumer Protection Agency orders suspension of betting ads offering rewards and targeting children

On November 19, 2024, the National Consumer Agency (SENACON), through the Department of Consumer Protection and Defense (DPDC), issued precautionary measures regarding fixed-odds betting advertisement.

The decision is based on the provisions of the Consumer Protection Code (CDC) and the Child and Adolescent Statute (ECA) that protect children and adolescents in consumer relations, as well as in Article 29, I of Law 14.790/23, which prohibits the offer, in any form, of advances, prepayments, bonuses, or prior advantages for placing a bet. SENACON has ordered, as a precautionary measure, the suspension of such type of advertising from online betting platforms (Order No. 2,344/2024).

In light of reports concerning widespread betting advertisements promoted by underage digital influencers on their social media, SENACON also ordered the suspension of any online betting advertising directed at individuals under 18 years old. The Agency has determined that the adjustment period provided to betting platforms by Law 14.790/23 and Ordinance/MF No. 1,475/2024 does not apply to compliance with existing laws in the country, particularly when there is a direct violation of protective legislation aimed at this group.

Companies are required to submit a transparency report within 20 days, detailing the measures taken to comply with these measures. The Order applies to companies authorized by the Ministry of Finance to operate fixed-odds betting in Brazil, whether at the national or state level. Non-compliance with the precautionary measures may result in a daily fine of R$ 50,000 until all obligations are fully met.

Please contact us to discuss any concerns regarding your activities in the betting market via fernanda.magalhaes@kasznarleonardos.com.