The Kombispel lottery, which helps finance the Swedish Social Democratic Party, has found itself at the center of a scandal involving unfair sales practices aimed at the elderly.
Aggressive Sales Practices
The Kombispel lottery operates on a subscription model, generating revenue for the Social Democrats. Recently, Swedish newspaper Dagens Nyheter reported that aggressive tactics were used to sell tickets, causing public outrage. The party reportedly hired a Barcelona-based telemarketing company that forced its employees to use manipulative sales practices, mainly targeting the elderly.
Former employees of the company said they were forced to hide key information about the subscription fees. The initial subscription price was significantly lower than subsequent payments, and this difference was deliberately not emphasized in communications with customers, which misled them. It was also not communicated that customers would need to contact the lottery themselves to cancel their subscription.
Regulatory response and management change
In response to the revelations, the Swedish gambling regulator Spelinspektionen made a statement that the Kombispel lottery is run by three political parties. The regulator emphasized that although it is responsible for licensees, responsibility for compliance with the law primarily lies with the parties running the lottery.
Spelinspektionen also noted that it is not currently conducting an official investigation, but is analyzing information received by the media. In addition, the agency explained that it does not have the authority to control the activities of telemarketing companies that cooperate with the lottery.
The Swedish Consumer Agency, with which Spelinspektionen regulates gambling advertising, said it was also monitoring the situation. The agency stressed that it had primary responsibility for monitoring the moderation of advertising.
Amid allegations of manipulation of older customers, Kombispel lottery director Jonas Lindholm was removed from his post. His replacement was Jonas Nygren, who was tasked with implementing internal reforms and ensuring transparency in the lottery.