Portugal already has a collective action regime in place and is starting to see a significant increase in mass claims.

What is the most common type of collective action you are seeing?

Actions for consumer protection and actions for redress, for breach of competition law.

What are the various ways a group could bring a collective action?

Collective actions can be brought by individuals or by representative bodies.

If collective actions are permitted, are these opt-in or opt-out actions?

Collective actions are opt-out actions, save actions for redress measures in respect of consumers who do not habitually reside in Portugal, which are opt-in actions.

Does the law currently provide for private collective actions by consumers? 

If collective actions are permitted are the usual forms of relief permitted and can punitive damages be claimed?

All forms of relief can be claimed in civil actions including injunctions, orders for redress and declaratory relief. Punitive damages are not available.

Are bodies which represent consumers able to bring actions on their behalf? And if yes, can these bodies bring cross-border actions?

Bodies which represent consumers and fulfil specific criteria can bring actions on their behalf. These bodies can also bring cross-border actions are available if they fulfil specific criteria and obtain qualification for that purpose.

Is third party funding of litigation permitted?

Is litigation funding permitted for collective actions?

Are consumer groups and law firms allowed to advertise the collective actions they are running?

Consumer groups can advertise but law firms cannot.

Is there a formal mechanism to settle actions on a collective basis?

There is no specific mechanism. Settlement is carried out under general laws. Settlements must be approved by the court. 

Depending on the type of action all consumers may be bound unless they opt-out until a certain stage of the proceedings.

If a trader loses a collective action does the law require the trader to publicise this?

In most types of collective actions, the judge must determine the publication of the decision at the trader’s cost.

Is there a penalty for non-compliance with a final decision issued in respect of a collective action?

There are penalties for non-compliance with final decisions issued in respect of collective actions, but such penalties depend on the kind of measures sought and, in some cases, on the claimant’s request. .

Contacts

With thanks to friends at Sérvulo & Associados. Please contact: João Carmona Dias [email protected] or Francisco Marques de Azevedo [email protected]

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.