A Law no. 144/2015 of September 8th, transposed Directive 2013/EU of the European Parliament and of the Council of May 21, 2013 on the alternative resolution of consumer disputes.
This law establishes the legal framework for the Alternative Dispute Resolution, creating the Consumer Arbitration Network in Portugal.
- What are consumer disputes??
These are disputes initiated by a consumer against a supplier of goods or services, which concern contractual obligations resulting from contracts for the sale or provision of services, concluded between a supplier of goods or services established and consumers resident in Portugal and the European Union (Article 2(1) of Law no. 144/2015.
- What is RAL?
ADRs are mechanisms available to consumers and businesses to try to resolve consumer disputes outside the courts, in a faster and more cost-effective way. ADR covers mediation, a conciliation and arbitration. The ADR process begins with an attempt to reach an agreement through mediation or conciliation. However, if this agreement is not reached, the parties involved can still resort to the Arbitration Court, through a simple and quick process.
- What are RAL entities?
They are independent entities, with specialized staff, who impartially help the consumer and the company reach an amicable solution. These entities are authorized to mediate, conciliate and arbitrate consumer disputes. They must be registered on the list provided for in Article 17 of Law 144/2015.
- Who is responsible for managing the list of RAL entities??
A Directorate-General for Consumer Affairs is the national authority competent to organize the registration and dissemination of the list of RAL entities ( see ANNEX I).
- How many RAL entities exist in Portugal?
There are ten Consumer Conflict Arbitration Centers in Portugal. Seven of them have general jurisdiction and are regional in scope, located in Lisbon, Porto, Coimbra, Guimarães, Braga/Viana do Castelo, the Algarve and Madeira. There is also a national center (supplementary), the CNIACC - Centro Nacional de Informação e Arbitragem de Conflitos de Consumo. There are also two specific competence centers specializing in the automobile sector and the insurance sector.
- How does a company know which RAL entity to indicate to its consumers??
O place where the contract for the sale of goods or the provision of services was concluded, The competent arbitration center, which as a rule coincides with the place of establishment, is determined.
For example:
- A company that only has one or more commercial establishments in a given municipality should only indicate the ADR body that is competent to settle disputes in that municipality.
- A company that operates throughout Portugal must indicate all the competent authorities.
- A car repair shop, an insurance company or a travel agency should indicate the specialized entities for these sectors.
- Who is obliged to inform consumers about RAL entities?
All suppliers of goods and services, including those who only sell products or provide services over the Internet, are obliged to inform consumers about the ADR bodies available or those they have voluntarily joined or are bound to by law. Only providers of Services of General Interest for no economic consideration are excluded, such as social services provided by or on behalf of the state, health services and public complementary or higher education services.
The obligations arising from Law 144/2015 apply, with the necessary adaptations, to all economic sectors not excluded by that law, including those in which there is already specific legislation providing for the same obligation.
- Is there any requirement to join an RAL entity??
This law does not impose membership of any ADR entity, but only establishes a duty to provide information about existing entities. However, arbitration is required for essential public services, such as electricity, gas, water and waste, electronic communications and postal services.
- How companies should provide this information?
This information must be provided in the following manner clear, understandable e appropriate to the type of good and service that is sold or provided (Article 18(2) of Law 144/2015). Thus:
- No electronic site of the suppliers of goods or services, if any.
- In contracts of purchase and sale or the provision of services between the supplier of goods or services and the consumer, when they are in writing or constitute contracts of adhesion.
- If there is no written form, the information must be provided on another durable medium, namely a displayed sign on the wall or affixed to the sales counter or the invoice delivered to the consumer.
- Does the law provide for a standardized information model for consumers??
No. However, attached is a proposal for a sign (Annex II).
- Who is responsible for monitoring compliance with the obligation to provide information to consumers?
It is up to Food and Economic Safety Authority and to sector regulators in the respective fields, monitoring compliance with these duties, investigating the respective administrative offense proceedings and deciding on these proceedings, including the imposition of fines and ancillary sanctions if necessary.
- What are the consequences of not complying with the duty to inform consumers??
Failure to comply with the duty to inform suppliers of goods or services constitutes administrative offense, punishable by:
- Fine between € 500 e € 5000, when committed by a natural person.
- Fine between € 5000 e € 25 000, when committed by a legal person.
- When does this new regime apply?
Law no. 144/2015 of September 8 came into force on September 23, 2015, and suppliers of goods or services had 6 months from that date to adapt to this new regime. Thus, since March 23, 2016 companies must have this information available for their consumers.
ATTENTION: Informing consumers about the available ADR entities does not exempt suppliers of goods and service providers from providing consumers with the Complaints book, mandatory under the terms of Decree-Law 156/2005, of September 15th.