Law No. 144/2015 of September 8 transposed Directive 2013/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes.

This law establishes the legal framework for Alternative Dispute Resolution mechanisms for consumer disputes, creating the Consumer Arbitration Network in Portugal.

1. What are consumer disputes?
These are disputes initiated by a consumer against a supplier of goods or services, concerning contractual obligations arising from purchase and sale or service provision contracts, entered into between suppliers of goods or services established in Portugal and consumers residing in Portugal and the European Union (Article 2, paragraph 1 of Law No. 144/2015).
1. What is ADR?
ADR are mechanisms available to consumers and businesses to try to resolve consumer disputes outside of court, in a faster and less expensive way. ADR covers mediation, conciliation and arbitration. The ADR process begins with an attempt at agreement via mediation or conciliation. However, if this agreement is not reached, the parties can still resort to the Arbitration Court, through a simple and quick process.
1. What are ADR entities?
They are independent entities, with specialized personnel, that impartially help the consumer and the company to reach an amicable solution. These entities are authorized to carry out mediation, conciliation and arbitration of consumer disputes. The aforementioned entities must be registered on the list provided for in Article 17 of Law No. 144/2015.
1. Who is responsible for managing the list of ADR entities?
The Directorate-General for Consumer Affairs is the national authority responsible for organizing the registration and publication of the list of ADR entities (see ANNEX I).
1. How many ADR entities are there in Portugal?
In Portugal, there are ten Consumer Conflict Arbitration Centers. Seven of these have general jurisdiction and a regional scope, located in Lisbon, Porto, Coimbra, Guimarães, Braga/Viana do Castelo, Algarve and Madeira. There is also the national territorial coverage center (supplementary), the CNIACC – National Center for Information and Arbitration of Consumer Conflicts. There are also two centers of specific competence specialized in the automotive sector and the insurance sector.

1. How does a company know which ADR entity it should indicate to its consumers?
The place where the contract for the sale of goods or the provision of services is concluded, which generally coincides with the location of the establishment, determines the competent arbitration center.
For example:
• A company that has only one or more commercial establishments in a given municipality should only indicate the ADR entity that has jurisdiction to resolve disputes in that municipality.
• A company that operates throughout the national territory must indicate all competent entities.
• A vehicle repair shop, an insurance company, or a travel agency must indicate the specialized entities for those sectors.

1. Who is obliged to inform consumers about ADR entities?

All suppliers of goods and service providers, including those who only sell products or provide services over the Internet, are obliged to inform consumers about the available ADR entities or those to which they have voluntarily adhered or to which they are bound by law. Only providers of General Interest Services without economic compensation are excluded, such as social services provided by the state or on its behalf, health services, and public supplementary or higher education services.
The obligations arising from Law No. 144/2015 apply, with the necessary adaptations, to all economic sectors not excluded by said law, including those in which specific legislation already exists providing for an identical obligation.
1. Is there any requirement to join an ADR entity?
This law does not impose membership in any ADR entity, establishing only a duty to provide information about existing entities. However, there is the case of mandatory arbitration for essential public services, such as electricity, gas, water and waste, electronic communications and postal services.
1. How should companies provide this information?
This information must be provided in a clear, understandable and appropriate manner to the type of good and service that is sold or provided (article 18, paragraph 2 of Law No. 144/2015). Thus:
• On the website of the suppliers of goods or service providers, if any.
• In purchase and sale or service contracts between the supplier of goods or service provider and the consumer, when these are in written form or constitute adhesion contracts.
• If there is no written form, the information must be provided in another durable medium, especially on a sign affixed to the wall or placed on the sales counter or on the invoice delivered to the consumer.

1. Does the law provide for any standardized model of information to be provided to consumers?

No. However, a proposed sign is attached (Annex II).
1. Who is responsible for monitoring compliance with the obligation to provide information to consumers?
The Food and Economic Security Authority and the sectoral regulators in their respective fields are responsible for monitoring compliance with these duties, initiating the respective administrative offense proceedings, and deciding on these proceedings, including the application of fines and ancillary sanctions if necessary.
1. What is the consequence of failing to comply with the duty to provide information to consumers?
Failure to inform suppliers of goods or service providers constitutes an offense, punishable by:
• A fine of between €500 and €5,000, when committed by a natural person.

• A fine of between €5,000 and €25,000, when committed by a legal entity.

1. When does this new regime apply?
Law No. 144/2015 of September 8th came into force on September 23rd, 2015, and suppliers of goods or service providers had 6 months from that date to adapt to this new regime. Therefore, since March 23rd, 2016, companies must have this information available to their consumers.
ATTENTION: Providing consumers with information about available ADR entities does not exempt suppliers of goods and service providers from providing consumers with the Complaints Book, which is mandatory under Decree-Law No. 156/2005, of September 15th.

List of Entities Annex 1