The housemate, known as the Human Ken Doll, used the slur twice during a conversation with fellow contestants during Friday night’s episode.
But rather than remove him, producers decided just to issue him with a “formal and final” warning in the Diary Room.
Footage was shown of Rodrigo being called in to be reprimanded, where he blamed being excited and drunk for using the word, before saying that he regretted using it.
Big Brother told him his language was “unacceptable” and that if he used it again he would be removed from the house immediately.
However, this course of action was not enough for many viewers, who called for him to be thrown out.
Many also noted that Emily Parr was removed from the house during the first week of the civilian series in 2007 for using the N-word.
A ‘Celebrity Big Brother’ spokesperson has addressed the matter in a statement, saying: “Big Brother does not condone or tolerate the use of any kind of racist or offensive language in the Big Brother house.
“Rodrigo has received a formal and final warning and if such language is used again in the house, he will be removed immediately.
“Rodrigo has apologised for his comments.”
‘Celebrity Big Brother’ continues tonight at 10pm on Channel 5.