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?

Consumer actions.

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.

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?

Organisations which have specific legal competence, or which fulfil specific criteria, can bring claims. Cross-border actions are available.

Is third party funding of litigation permitted?

The market is not well developed, but currently expanding.

Is litigation funding permitted for collective actions?

There are no specific laws preventing it.

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 is reached in the litigation.

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

In most types of collective actions set out by law, the judge must determine the publication of the decision at the trader’s cost. There is one type of injunction order where the claimant can request publication.

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

There are sanctions for non-compliance with final decisions issued in respect of collective actions, with a view to ensuring compliance with such decisions, but these depend on the kind of measures sought.

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.