1. Cairo-Egypt, October 7th 2009

2. Consumer Protection: Legal background In 1976 it was established for the first time in the Portuguese Constitution, the State's obligation to protect consumers, particularly by supporting the creation of consumers civic organizations. In August 1981, appears the first law of consumer protection, inspired by the Charter of Consumer Protection, adopted by the Council of Europe in 1973.

3. Consumer Protection: Legal background In July 1989, was settled in the Portuguese Constitution that consumers were entitled to the quality of goods and services, education and information, health protection, safety and economic interests, as well as damages. Also, it was forbidden surreptitious, indirect or fraudulent advertising.

4. Consumer Protection: Legal background As far as civic organizations, it was settled that they were entitled to State support and to be heard on issues of consumer protection, and they were allowed to represent their members in court of law regarding consumer issues. In July 1996, appears the new consumer protection law (current).

5. Consumer Protection: Portuguese system The Portuguese system of consumer protection, is based on "Complaints Book". Under the Decree-Law n.º 156/2005 (1 st amendment in 2007), the Complaints Book can be requested by the consumers at: Hotels/ Restaurants and bars; Tourism and travel agencies; Real-estate & Brokers companies; Private health units and Thermal spas; Undertakers;

6. Consumer Protection: Portuguese system Retail shops and shopping centres; Dry-cleaning establishments; Hairdressers, beauty parlours; Communications, water, natural gas and electricity providers; Transport services; Insurance companies; Private schools; Financial and credit institutions

7. Consumer Protection: Portuguese system The complaints filled in the Complaints Book must follow a uniform procedure.

8. Consumer Protection: Portuguese system All good suppliers and service providers must have the Complaints Book, provided they meet the following requirements: Carry on their activity at fixed or permanent locations; They have contact with the public.

9. Consumer Protection: Portuguese system The Professionals Obligations: Have a Complaints Book in their establishments ; Provide the Complaints Book whenever required ; Send, within 10 working days, the original complaint to the regulatory authority; Deliver the duplicate of the complaint to the complainant.

10. Consumer Protection: Portuguese system Procedure: The consumer fills the complaint form (Complaints Book).

11. Consumer Protection: Portuguese system - The professional removes the original and the duplicate of the Complaint Book. The duplicate is issued to the complainant; - The original must be sent to the regulatory authority within a maximum of 10 working days (a 3 th page stays always in the Complaints Book)

12. Consumer Protection: Portuguese system Procedures of the Regulatory Authority: Examines the complaint, and adopts the appropriate procedure if the facts indicate any type of infringement ; The authority may, depending on the contents of the complaint and the allegations made by the professional, take the measures considered appropriate, according to the powers conferred upon them by the law. ( Ex. Recommendation to the professional or take any supervisory action)

13. Consumer Protection: Portuguese system Last August, DG Consumidor, lunched, with other Regulatory Authorities, a new IT tool regarding Complaints Book, called RTIC ( Common Information Network ), (http://rtic.consumidor.pt) This network allows the recording of procedures for handling complaints which is carried out by Regulatory Authorities.

14. Consumer Protection: Portuguese system The consumer and the trader can see (on line) the evolution of the complaint, namely the procedures carried out by Regulatory Authorities. Facilitates communication of statistical data regarding consumer disputes.

15. Consumer Protection: Portuguese system When from the complaints form arises a litigation situation, the authority ought to inform the complainant about the procedures or measures which may be considered or adopted by the consumer, namely arbitration centres or small claims court (Alternative Dispute Resolution), (non-judicial)

16. Consumer Protection: Alternative Dispute Resolution (ADR Alternative Dispute Resolution (ADR) The Portuguese alternative dispute resolution (non-judicial) bodies are: Small Claims Courts; Arbitration Centres; Consumers Civic Organizations

17. Consumer Protection: Small Claims Courts The Small Claims Courts are the result of a partnership between the Ministry of Justice and local governments/municipalities; The first Small Claims Court opened in January 2002, in Lisbon, as an experimental project in a context of promoting new and different forms of dispute resolution models based on streamlined and efficient administration of justice in close collaboration with the Local Government (municipalities) and promote closeness between the Justice and citizens;

18. Consumer Protection: Small Claims Courts The procedure is simplified and parties may even submit pleadings orally; Disputes can be resolved through mediation, conciliation or through the sentence; Mediation takes place only when the parties agree and aims to provide the parties an opportunity to resolve their differences through a friendly agreement with a help of mediator, who is an impartial third party. Unlike a judge or an arbitrator, the mediator has no power of decision and therefore does not impose any decision or sentence;

19. Consumer Protection: Small Claims Courts As an impartial third party, the mediator guides the parties, helps them establish the necessary communication so they can find in themselves the basis of the agreement ending the conflict; The parties are so decision makers who build an agreement with the help of the mediator; If mediation does not result in an agreement, the process follows its course and the judge tries to reconcile;

20. Consumer Protection: Small Claims Courts If conciliation is not reached, the judge will decide, after hearing the parties and the evidence produced. The Judge’s decision has the same value as a court decision and it is possible to appeal to the judicial court. The opening hours of the Small Claims Courts are tailored to local needs and habits. There are, currently 22 Small Claims Courts covering 55 counties/ municipalities, distributed according to the following map:

21. Consumer Protection: Small Claims Courts

22. Consumer Protection: Arbitration Centres Arbitration Centres The Arbitration Centres are competent authorities to resolve certain types of conflicts, according to his ability, through mediation, conciliation and arbitration. The Arbitration Centres operate according to their jurisdiction (geographical area), depending on the subject (sort of disputes that can resolve), and in some cases, depending on the value.

23. Consumer Protection: Arbitration Centres The Ministry of Justice on social grounds and considering the particular importance of certain areas, technically and financially supports certain Arbitration Centres, particularly in the consumer matters ( All disputes arising from the acquisition of goods, products or services by a consumer) Entities, including consumers civic associations, interested in promoting the institutionalized voluntary arbitration, shall apply to the Minister of Justice approval for the creation of their centres.

24. Consumer Protection: Arbitration Centres Disputes can be resolved by: - The mediation or conciliation, which are a friendly dispute resolution that aims to reach an agreement between the parties with the intervention of a third person, a professional in this case enabled the Centre to act as mediator or conciliator ; - The arbitration, which is a way to resolve the dispute through an impartial and neutral third party - the Judge Referee - chosen by the parties or designated by the Centre. - The decision of the Judge Referee has the same value as a court decision and it is possible to appeal to the judicial court.

25. Consumer Protection: Consumers Civic Organizations Criteria for recognition of consumer civic organizations Non-governmental organizations, including consumers civic organizations, can be formed by natural or legal persons; Its constitution is free, depending only on the will of natural or legal persons; Consumers Civic Organizations are legal persons under private law and nonprofit;

26. Consumer Protection: Consumers Civic Organizations Funding of consumer protection NGOs They are financed by: Their own financial resources (investments, small sales, etc.) Associates (shares) Donations The State (subsidies)

27. Consumer Protection: Consumers Civic Organizations Consultation of and dialogue with consumer protection NGOs By the Portuguese Constitution, consumer protection NGOs, are entitled to State support and to be heard on issues of consumer protection, namely: in matters of problems detection; before the adoption of consumer protection laws; establishing the means of consumer protection.

28. Consumer Protection: Consumers Civic Organizations Cooperation between public authorities and consumer NGOs Besides the cooperation in Arbitration Centres, consumer NGOs work with Portuguese public authorities in other partnerships such as: membership on the Safety Commission (products and services safety); in support of consumer debt; studies of market behaviour or advertising.

29. Lurdes Cunha Direcção-Geral do Consumidor lurdes.cunha@dg.consumidor.pt www.consumidor.pt