Swedish Consumer Agency investigates 13 operators over “unreasonable” T&Cs

Sweden’s Consumer Agency (KO) has branded the terms and conditions (T&Cs) of 13 licensed operators as “unreasonable, vague and misleading” following a review of operator practices. Smarkets, Svenska Spel, Videoslots, ComeOn, Aspire Global and eight other operators have been highlighted by KO for supposed shortcomings in contracts with players. KO asserted operator T&Cs often allowed them to request levels of documentation from players that was “too extensive”, and that many of these operators used contract terms to limit consumer rights to withdraw funds. In the review, KO found that six of the 13 gaming companies applied contract terms that restricted a player’s right to withdraw money from gaming accounts, including by setting weekly restrictions on the size of withdrawals. Three companies applied conditions limiting withdrawals to a specific amount per week, while a further two companies made players verify their identity for withdrawals over SEK18,000 (£1,600) and SEK20,000 (£1,800) respectively. “To request additional documentation if the consumer wants to withdraw his money can be interpreted as the gaming companies making it more difficult or delaying the consumer’s right to withdraw their winnings,” KO stated. “In order for the consumer to reasonably be able to decide what is required by them, the requirements for documentation should not differ regardless of whether it is about deposit of money or withdrawal of winnings,” KO added. KO investigators found that contract terms often applied foreign laws in preference to Swedish law, despite Swedish players being entitled to country-specific consumer rights. In addition, investigators discovered a lack of information provided to players about alternative dispute resolution services and the avenues open to players seeking redress. Identified information gaps included incomplete or non-existent information about Sweden’s general complaints board and the EU’s online dispute resolution platform. Investigators found the operators could change T&Cs applied to players at any time and in most cases, without a valid reason for the changes and often due to their own opinion. Only two of the 13 companies under review stated the reasons required to change the terms, for commercial reasons or to comply with amendments to the law. In many of the cases identified, players were not notified of these changes, whether significant or insignificant, according to KO. Concluding its review, KO opined there was “significant room for improvement” at the operators under review. “Terms that are compatible with applicable law and that are clearly stated clearly leads to a balance in the parties’ performance which means that the consumer runs less risk of being hit by unfair conditions,” KO added. All 13 operators will now be subject to ongoing checks by KO and enforcement action where necessary, which could include injunctions or fines for further breaches.