What is? It´s an opt-out mechanism of general application, amounting to a representative collective action that will proceed through the court system. Legal Basis
Individual citizens, organizations and the “Ministério Público” (Public Prosecutor)
Types of Disputes/Main Areas
Types of Disputes/Main Areas
Public Health, Quality of Life, Preservation of the cultural and environmental heritage and consumer rights.
Remedies
Material and non material damages and compensation. It does not cover punitive and exemplary damages.
Costs
Consumers are exempted from the cost of preliminary preparations in bringing the case.
Claimants are obliged to pay 10-50% of the court fees (as determined by the judge) if the case is lost. If the case is won, the court fees will be waived in full.
The defendant will always be obliged to pay court fees regardless of whether or not it wins.
- It should be filed on one of the procedure forms of our judicial code (a less formal version of the general regime)
- It begins with the presentation of the initial petition in courts and should conform to the general formal requirements imposed by the law.
- Consumers/citizens are called to exclude themselves (in an advertisement published by the media).
- Judges are not confined to the evidence presented in court by the parties.
- The “Ministério Público” also monitors the procedure in order to guarantee the procedure.
- The process will follow the general process in terms of appeal.
In 1999 Portugal Telecom (Portuguese Telecommunications operator) introduced an activation fee which contravened our Telecommunication services law.
In 1999 Portugal Telecom (Portuguese Telecommunications operator) introduced an activation fee which contravened our Telecommunication services law.
DECO brought-up a group action against PT, who was ordered to refund the activation fee to all consumers concerned. This amounted to € 120 million.
Due to practical difficulty of financially compensating each of the consumers affected (almost 2 million), DECO and PT agreed that the last one would guarantee all consumers free weekend phone calls for a stipulated time period.
In 1999, just before a high-demand concert performance of Operama Carmen in Lisbon, the media announced that the famous lead singer would not appear. Most consumers wanted full reimbursement of their tickets (the average price was € 163).
DECO brought-up a group action representing all affected consumers. Simultaneously DECO and the companies involved entered in negotiations in order to compensate consumers. However, given the duration of this procedure, these companies used this time to disappear and avoid reimbursement to the affected consumers.
An English school - “Opening-School” - systematically required payment in advance of classes. More than 50% of consumers used to pay these classes through a credit provider (BBVA). When the school closed abruptly and went bankrupt, consumers were asked by the credit provider to continue their payments in its entirety.
DECO brought-up a group action representing all affected consumers aiming to rescind the credit contracts due to the school´s shutdown. The court´s decision fully recognized the complaints and ordered the refund of the payments made after the shutdown.
The water service company Águas do Planalto, in face of a very cold winter that damaged some water meters, charged € 107 for each replacing service, which contravened the utilities sector´s law. 1800 consumers were affected by this company.
DECO brought-up a group action representing all affected consumers. All were fully reimbursed by the company.
In 2006, the Spanish company Afinsa (one of the largest collectibles company) went bankrupt, and in Portugal, more than 3.000 consumers lost their private investments.
DECO, through its congener OCU, brought-up a group action representing, in Spain, all the portuguese affected consumers in an insolvency procedure, so that all consumers could recover, at least, part of their own private investments. Though this procedure has begun in 2006, consumers have yet to be reimbursed.
What is?
It´s an opt-out mechanism of general application, allowing injunctions against persons/companies that use or recommend unfair clauses.
Legal Basis
Portuguese Constitution and National Laws
Who can initiate the procedure?
Organizations and the “Ministério Público” (Public Prosecutor)
Types of Disputes/Main Areas
Types of Disputes/Main Areas
Unfair Contract Terms and Unfair Commercial Practices.
Remedies
Ensure that the business ceases the infringement and does not engage in similar conduct in the future.
Costs
Consumers are exempted from the cost of preliminary preparations in bringing the case.
Claimants are obliged to pay 10-50% of the court fees (as determined by the judge) if the case is lost. If the case is won, the court fees will be waived in full.
The defendant will always be obliged to pay court fees regardless of whether or not it wins.
Banco Comercial Português, Banco Totta & Açores, Banco Espirito Santo and others – Injunction regarding the use of abusive clauses on payment cards ‘contract clauses.
Banco Comercial Português, Banco Totta & Açores, Banco Espirito Santo and others – Injunction regarding the use of abusive clauses on payment cards ‘contract clauses.
Nikomagnetic, Biocasa, Pink Dream and Otorrosio – Injunction regarding the use of aggressive practices regarding the sales of mattresses.
Key Club and Jogol – Injunction regarding the use of abusive clauses on timeshare contracts.
TAP and Easyjet – Injunction regarding the use of abusive clauses on air transport´s contracts.
Apple – Injunction regarding the use of misleading practices on sales contracts.
