Brazil Opens Consumer Investigation Into Blaze

Brazil’s Public Prosecutor’s Office has opened a civil investigation into online betting operator Blaze over allegations of consumer rights violations and abusive business practices.

The case is being handled by the 1st Consumer Protection Prosecutor’s Office (Prodecon), which will assess whether the company’s operations comply with Brazil’s consumer protection legislation and the country’s betting regulations.

The investigation targets Foggo Entertainment Ltda., the company responsible for operating Blaze in Brazil. If authorities determine that consumer protection laws have been breached, the operator could face significant penalties, including a claim for collective moral damages of up to BRL 120 million.

Consumer Complaints Trigger Investigation

The inquiry follows the review of technical reports and more than 42,000 consumer complaints submitted against the operator.

Prosecutors are examining allegations that include the suspension of customer accounts without proper justification, the withholding of player balances, and bonus conditions that may impose excessive rollover requirements.

Authorities are also reviewing how Blaze manages users’ personal information and whether its advertising practices comply with Brazilian consumer protection standards.

Requests for Operational Information

As part of the investigation, Prodecon has requested all records relating to Blaze published on the Reclame Aqui consumer complaints platform during the past 12 months.

The company has also been instructed to submit documents covering its account management policies, account closure procedures, rules governing the retention of customer funds, corporate structure and anti-money laundering controls.

In addition, prosecutors have requested information on the responsible gambling measures adopted by Blaze, including self-exclusion tools and other safeguards required of licensed betting operators in Brazil.

Advertising Practices Also Under Review

The investigation extends beyond customer policies and includes Blaze’s promotional activities.

Prosecutors have requested copies of endorsement agreements involving public figures, including Neymar Jr., Virginia Fonseca, Lucas Lira and Bruna Unaik, to assess whether marketing campaigns complied with advertising regulations.

Particular attention is being given to promotional language that may have suggested betting as a source of "extra income," which authorities are evaluating as potentially misleading.

Separately, Brazil’s National Consumer Secretariat (Senacon) has been given 20 days to provide records of any administrative proceedings previously opened against Blaze.