Portugal
| As a mechanism for collective redress, Portuguese law recognized the institution of the so-called citizen complaint (acção popular). Its roots date back to the 16th century (introduction of the Ordenações Manuelinas decrees), and its admissibility was guaranteed in Article 52 § 3 of the Portuguese Constitution of 1976. At the statutory level, this institution was regulated in the Law on Citizen Complaints No. 83/95 (Direito de participação procedimental e de acção popular) and is also supported by Article 26A of the Portuguese Code of Civil Procedure (Código de Processo Civil). A citizen complaint in Portuguese law is more of a tool for joint examination of cases than a typical class action.
Citizen complaints were mainly used in cases related to public health, the environment, quality of life, consumer protection, public heritage, and the public domain. A well-known example of a citizen complaint proceeding is the case brought by the Portuguese Association for Consumer Protection (Associação Portuguesa para a Defesa do Consumidor) against a telecommunications company in relation to so-called activation fees. In 2003, the competent court ruled that these fees were contrary to the contracts that the operator had concluded with consumers. As part of the “compensation” (in addition to the damages owed to consumers), the entrepreneur provided all potential plaintiffs with the possibility of making free telephone calls for a specified period of time. In recent years, citizen complaints in cases related to financial instrument services have been growing in popularity. |
| Implementation of Directive 2020/1828 |
| Type of procedure and model |
Class action; opt-out model (opt-in model if the consumer resides outside Portugal) |
| Qualified entity to bring an action |
Consumer associations and foundations, local authorities |
| Third-party funding |
Admissible. A qualified entity using third-party funding must provide the court with a funding agreement and a financial summary listing the sources of funding used to support the class action. This agreement must guarantee the independence of the claimant and the absence of conflicts of interest. Previously, third-party funding of proceedings was not regulated.
If the funding is provided in violation of the regulations, the court will order the claimant to refuse or modify the funding within a specified period of time, under pain of losing legal standing. If the funding is not brought into compliance with the law, the court will declare that the claimant lacks legal standing – which will not affect the rights of the persons covered by the class action. An interesting solution is the provision that, in such a situation, the public prosecutor’s office will be able to step in for the claimant and continue the proceedings. |
| Facilities for consumers |
Introduction of a number of information obligations, including the requirement to provide information on class actions brought in Portugal. Exemption from court fees for the claimant and the possibility of exemption from all court costs. |
Update: February/March 2025
