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Brazil’s MPDFT opens inquiry into Blaze over account freezes, R$ 200,000 retention, and alleged misleading ads
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Brazil’s MPDFT opens inquiry into Blaze over account freezes, R$ 200,000 retention, and alleged misleading ads
The Federal District and Territories Public Prosecutor’s Office (MPDFT) has opened a Civil Public Inquiry against Blaze, operated by Foggo Entertainment Ltda., and the file is not just about one angry customer. The investigation points to a broader pattern: blocked accounts, disputed withdrawals, aggressive bonus mechanics, and influencer marketing built around “extra income.”
- The inquiry was opened on Monday, 18/6, and Portaria 1029/26 was published in the Diário Oficial da União on Wednesday, 24/6. The case is being handled by the 1st Consumer Rights Prosecutor’s Office, which says it is examining conduct that may amount to collective consumer harm, not just an isolated dispute.
- According to the MPDFT, the probe covers six main areas: improper retention of funds and arbitrary account blocks; abusive contract terms and disproportionate rollover requirements; failures in responsible gaming policies; personal data handling; misleading customer acquisition advertising using digital influencers; and compliance with fixed-odds betting regulations and consumer protection rules.
- The investigation started from a consumer case involving alleged property damage of R$ 200,000, supported by split deposits documented in the court file. But the prosecutor’s office says the wider pattern is what matters: a technical report attached to the case counted more than 42,927 complaints against the platform.
- The most sensitive part for operators and PSPs is the influencer angle. The portaria names Lucas Lira, Bruna Unaik, Neymar Jr., and Virginia Fonseca as promoters of Blaze and questions the use of the phrase “renda extra” in those campaigns, framing it as possible misleading advertising under article 37, paragraph 1, of Brazil’s Consumer Defense Code.
- As an initial step, the MPDFT ordered Blaze to provide full copies of the advertising contracts signed with those four names within 15 days, including the marketing guidelines supplied to them, with specific attention to the use of “renda extra.” The inquiry also targets bonus structures tied to betting targets, known as rollover, which the prosecutor’s office says may conflict with Portaria SPA/MF n.º 1.231/2024, banning advance financial advantages used to attract bettors.
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