The Swedish Gambling Authority has fined the ruling Social Democratic Party of Sweden (SAP) 3 million Swedish kronor (€275,000). The fine came after an investigation revealed serious violations of consumer protection. The abuses occurred in the sale of Kombilotteriet, a lottery affiliated with the party.
The Swedish authorities found that external call centers used aggressive sales methods. These practices were targeted at older people. The salespeople often misled older people into thinking they were making one-off purchases. In reality, the older people were stuck with ongoing subscriptions.
The regulator said the violations were serious. There was a lack of supervision by the licensees of their hired sales teams. According to the authorities, the responsibility remained with the licensees, even though they had ended their cooperation with the call center.
The Social Democratic Party takes action
Following the investigation, the SAP has implemented major changes. The party replaced the director and board members of Kombispel, the company behind the lottery. An extensive investigation was also launched into the sales and compliance procedures.
The regulator acknowledged the steps taken, but still felt that a formal warning was necessary. According to the regulator, the measures had to make it clear that responsibility for the abuses remains with the SAP.
Other organizations also receive fines
It was not only the Social Democratic Party that was punished. The Swedish Breast Cancer and Prostate Cancer Associations were also each fined 500,000 Swedish kronor. They had not paid enough attention when outsourcing the lottery sales. As a result, consumers were sold subscriptions without their knowledge or intention.
The regulator warned that these incidents damage the reliability of the Swedish gambling system. The authority will therefore continue to take strict action against organizations that violate the rules.