The primary laws and regulations that govern advertising practices in Portugal are the following.
Advertising practices are also regulated by industry-specific regulations concerning certain types of products such as:
Moreover, the Advertising Self-Regulatory Body (ARP) has published a “Code of Conduct on Advertising and other forms of Commercial Communication”, which is based on the Code of Fair Practices in Advertising by the International Chamber of Commerce. This Code of Conduct must be complied with by its member advertisers.
There are also rules specifically regulating political advertising.
Under the terms of Regulatory Decree No 38/2012, the Directorate-General for Consumer Affairs (in Portuguese “Direção-Geral do Consumidor”) is responsible for monitoring and supervising commercial and institutional advertising, investigating and deciding on the corresponding administrative offence proceedings and imposing fines and ancillary sanctions. This competence is carried out by the Advertising Division of the Directorate-General for Consumer Affairs.
Additionally, when advertising within the scope of their competencies, the following regulatory authorities have the power to supervise compliance with legal provisions, investigate the respective administrative offence proceedings and apply the corresponding fines and ancillary sanctions.
The advertiser, the professional, the advertising agency or any other entity that carries out the advertising activity, the owner of the advertising medium or the respective concessionaire, as well as any other party involved in issuing the advertising message may be held liable for deceptive advertising.
For this purpose, the following should be considered.
Advertising is defined in the Advertising Code as any form of communication made by entities of a public or private nature, within the scope of a commercial, industrial, craft or liberal activity, with the direct or indirect aim of:
Advertising is also considered to be any form of communication by the Public Administration that has the direct or indirect aim of promoting the supply of goods or services.
The installation of an advertising support/device with the inscription of advertising messages of a commercial nature on goods or spaces assigned to the public domain, or visible from them, is subject to prior notice to or authorisation from the respective city council (Law 97/88, as amended by Decree-Law 48/2011).
If the advertising in question uses musical recordings (recorded music, music videos and/or karaoke), a licence must be requested from Audiogest (Collective Management Entity for the Rights of Phonographic Producers).
In addition, pre-approval may be required depending on the subject of the advertising in question, as is the case with financial products (necessity of notifying the Bank of Portugal) and medicines (necessity of prior authorisation from the Infarmed).
The Advertising Self-Regulatory Body (ARP) has a Pre-Clearance process, which is a voluntary system that makes the dissemination of advertising conditional on a prior analysis attesting to its ethical and legal compliance.
According to the Advertising Code, the legal provisions on copyright apply to the creation of advertising, and the economic rights over the advertising creation are presumed to have been assigned exclusively to its intellectual creator, unless otherwise agreed.
Moreover, the Advertising Code provides that advertising which uses the image or words of a person without their authorisation is prohibited.
The general rules of civil law, intellectual property law, and data protection law are applicable to the use of intellectual property or an individual’s name, picture, voice, or likeness in advertising. In this regard, a person’s image cannot be exposed, reproduced, or launched into commerce without that person’s prior consent. Any commercialisation that affects a person’s honour or reputation, without their consent, is prohibited.
According to the ARP’s Code of Conduct, a commercial communication should not, unless prior authorisation has been obtained, describe or refer to the personal goods of any person in order to insinuate that that person has made some kind of recommendation as to the use of the product that is being advertised. It is also determined that advertising must not, under any circumstances, unduly take advantage of the reputation linked to the name, trade marks, or any other intellectual property element relating to another entity, person, or institution, nor take advantage of the reputation obtained by other marketing campaigns, without having obtained their prior authorisation.
The self-regulatory authority that governs advertising practices in Portugal is the ARP, which is a system created by the industry itself and is voluntarily adhered to by its professionals, whether they are advertisers, agencies, or media.
The core competence of the ARP is to verify that advertising complies with the Advertising Code and the Code of Conduct issued by the ARP.
The ARP has a dispute resolution system, through which it receives complaints from consumers or legal entities (public or private entities), whenever they consider that a particular advertisement is unlawful and/or censored by the Advertising Self-Regulation Code of Conduct or by current legislation.
The ARP also has a Copy Advice system, under which it provides confidential legal advice on an advertisement before it is disseminated. Similarly, the ARP has a Pre-Clearance process, which is a voluntary system that makes the dissemination of advertising conditional on a prior analysis attesting to its ethical and legal compliance.
Furthermore, the ARP has monitoring and mediation functions.
A consumer may bring a claim before the Directorate-General for Consumer Affairs (which is the responsible entity for the supervision of advertising) and also before the ARP.
Consumers are always entitled to file a legal action in case the advertisement violates or harms consumer rights.
In addition, any person, including competitors who have a legitimate interest in combating misleading advertising or in opposing advertisements that consist of prohibited unfair commercial practices, may request the intervention of the Directorate-General for Consumer Affairs or may bring an injunction action to prevent, correct, or stop such practices, under the terms of the Consumer Protection Law.
In this regard, a consumer who has suffered damage as a result of an advert that is deemed an unfair commercial practice is entitled to compensation under the general terms.
Moreover, the Advertising Code provides that advertisers, professionals, advertising agencies and any other entities that pursue advertising activities, as well as the owners of the advertising media used or the respective concessionaires, are jointly and severally liable, in general terms, for damage caused to third parties as a result of the dissemination of illegal advertising messages.
In 2024, the enforcement activity of the Directorate-General for Consumers’ Affairs focused mainly on environmental claims and influencer marketing, as well as advertising aimed at minors.
Of the 72 decisions the Directorate-General for Consumers’ Affairs had predicted to issue in 2024 as an ideal target (60 final decisions in infringement proceedings initiated by the Directorate-General for Consumers’ Affairs, added to 12 decisions to initiate investigation proceedings), only 25% have been issued.
Among the administrative offences already launched by the Directorate-General for Consumers, the most noteworthy have been the presentation of prices in large-scale food retailers (ie, supermarkets) and the issue of misleading advertising, also in the non-food sector. During the summer season, specifically during the summer vacation period, the Directorate-General for Consumer Affairs also carried out an inspection of advertising and prices presented in connection with the purchase of airline tickets, in which 367 advertising messages were analysed and five notices were issued, which are expected to lead to administrative offence proceedings against the five entities.
Parliamentary groups, in turn, have been focusing their attention on advertising directed at children, and especially in connection with foodstuffs. Just this September, the final text of a Bill introduced by PAN (People – Animals – Nature) at the beginning of the legislature, which called for a review of the regulations governing advertising of foodstuffs directed at children, has been approved by the Economy Committee, and is now awaiting approval in the general chamber.
In addition to the decisions listed in 1.9 Regulatory and Legal Trends, there were various circumstances throughout 2024 in which companies acting within the Portuguese market made use of controversies involving high command officials in the Portuguese government and/or culturally (religiously) relevant imagery to advertise their products.
The legitimacy and lawfulness of these particular advertising practices was much discussed. Indeed, while resort to government bodies and government officials, as well as to religious or cultural symbols, for the purpose of publicity and commercial communications, may not depreciate the persons or symbols invoked, “depreciating” is a significantly open concept. As such, both supporters and opponents were able to find arms to bear in the discussion.
Nonetheless, the campaigns referred to in this point have not yet been made the object of a publicly available proceeding. As such, the legal community is still awaiting a final judgment on the boundaries of licit advertising using institutional and/or religious symbols.
The deliberations of the ARP Ethics Jury, which acts as an alternative means of resolving disputes, have been of great importance to the Portuguese courts, functioning as case law.
Advertising is governed by the principles of lawfulness, identifiability, truthfulness, and respect for consumer rights.
For instance, the use of subliminal images or other dissimulating means that exploit the possibility of transmitting advertising without the recipients realising the advertising nature of the message is prohibited.
The Advertising Code provides that all advertising that is misleading is prohibited under the terms of the Unfair Commercial Practices Regime. In turn, this regime provides that a commercial practice is misleading if it contains false information or if, even if it is factually correct, for any reason, including its general presentation, it misleads or is likely to mislead the consumer in relation to one or more elements and, in both cases, leads or is likely to lead the consumer to take a transactional decision that he or she would not have taken otherwise. Specifically, and by way of example, the following practices are considered misleading.
According to the Advertising Code, advertising must respect the truth and not distort the facts.
In particular, claims about the origin, nature, composition, properties, and conditions of purchase of the goods or services advertised must be accurate and capable of being proven at all times before the competent authorities.
If there is a suspicion that an advertisement consists of an unfair commercial practice, the Directorate-General for Consumer Affairs may require the advertiser to provide proof of the material accuracy of the factual data contained in the advertisement.
Additionally, according to the ARP’s Code of Conduct, descriptions, claims, or illustrations relating to verifiable facts in an advertisement must be capable of being proven.
Objective claims regarding the product or service that is being advertised always require substantiation, in particular regarding the origin, nature, composition, properties, and conditions of purchase of the goods or services advertised.
However, regarding subjective statements, it may be admissible not to have substantiation.
The above standards are applicable to the use of product demonstrations in advertising. Additionally, according to the Unfair Commercial Practices Regime, an insufficient demonstration of a product may be considered misleading and subject to monetary fines.
The ARP’s Code of Conduct provides that in demonstrating the performance and use of a product, advertising must not:
The Advertising Code provides that testimonial advertising must include personalised, genuine, and verifiable testimonies related to the experience of the deponent or whoever they represent. Depersonalised testimony is allowed, as long as it is not attributed to a particularly qualified witness, namely due to the use of uniforms or clothing characteristic of a particular profession.
In television advertising, endorsements must be identifiable as such, at the beginning, restart, and at the end of any programme.
Moreover, according to the ARP’s Code of Conduct, advertising must not represent or refer to a person, regardless of whether they are carrying out public or private activities, without their prior authorisation. It is also stipulated that testimonials or qualified endorsements must relate to the experience of the person providing them and, when they become obsolete or misleading, particularly due to the passage of time, they must not be used.
According to the Advertising Code, advertising must be unequivocally identified as such, whatever the means of dissemination used. In this respect, any disclaimers in advertising must be truthful and lawful, and must not mislead consumers. Accordingly, advertising which, by its form, object, or purpose, offends the fundamental values, principles, and institutions enshrined in the Constitution is prohibited.
In addition, advertising that encourages behaviour harmful to the health and safety of the consumer is forbidden, namely due to inadequate information about the dangerous nature of the product or the particular susceptibility to accidents as a result of its use.
There are no special laws or regulations that address stereotyping in advertising. Notwithstanding, all advertising containing any discrimination in relation to race, language, territory of origin, religion, or gender is prohibited.
The ARP’s Code of Conduct provides that advertising must respect the dignity of the human person and must not incite or convey any form of discrimination, whether based on race, nationality, religious origin, gender, age, physical disability, or sexual orientation.
In addition, Law No 27/2021 (“Portuguese Charter of Human Rights in the Digital Age”) states that everyone has the right to ensure that content transmitted and received in a digital environment is not subject to discrimination, restriction, or interference in relation to the sender, the recipient, the type or content of the information, the device or applications used, or, in general, people’s legitimate choices.
In general, and in accordance with the Advertising Code, advertising that encourages behaviour harmful to the protection of the environment is prohibited, as well as advertising for vehicles that contains situations or suggestions for using the vehicle that disturb the environment.
The Directorate-General for Consumer Affairs, together with the ARP, have issued a guide on environmental claims in advertising, which establishes some indications regarding the presentation of environmental claims, namely:
The use of environmental claims such as environmentally friendly; ecological; sustainable; biodegradable; and zero carbon, without an accessible, detailed, understandable, objective explanation and supported by scientific evidence of the benefits claimed is prohibited.
The ARP Code of Conduct also includes a specific chapter dedicated to environmental claims in advertisements.
The Unfair Commercial Practices regime prohibits aggressive commercial practices. In this regard, a commercial practice is aggressive if, by reason of harassment, coercion, or undue influence, it significantly limits or is likely to significantly limit the consumer’s freedom of choice or behaviour in relation to a good or service and therefore causes or is likely to cause the consumer to take a transactional decision that he or she would not have taken otherwise.
The following commercial practices are considered aggressive under any circumstances.
In accordance with the Advertising Code, advertising aimed specifically at children must always take into account their psychological vulnerability, and in particular refrain from:
Advertising of alcoholic beverages, gambling and betting, tobacco, or any kind of pornographic material in educational establishments and surrounding areas, as well as in any publications, programmes, or activities especially aimed at children, is prohibited.
There are also a number of restrictions on advertising products that contain a high level of energy, salt, sugar, saturated fatty acids, and processed fatty acids. In this regard, the ARP has issued a Code of Self-Regulation on the advertising of food and drink aimed at children.
The ARP Code of Conduct establishes various provisions applicable to restrictions on advertising aimed at children, including that:
According to the Advertising Code, advertising delivered to the recipient’s address, by post or any other means, must clearly and precisely contain the name, address, and other information necessary to identify the advertiser.
The ARP’s Code of Conduct provides that the identity of the advertiser/sponsor or the brand must be evident and the advertisement must, where appropriate, mention the means by which the consumer can contact them without any difficulty.
The ARP’s Code of Conduct also includes a chapter dedicated to sponsorship, stipulating namely that particular care must be taken to ensure that there is no possibility of confusion between, on the one hand, sponsoring a particular event or activity and, on the other, sponsoring the media broadcast of that event, particularly when several sponsorships are involved and without prejudice to situations in which the same entity sponsors both.
In television advertising, sponsored programmes must be clearly identified as such by the name, logo, or any other distinctive sign of the sponsor of its products or services. Sponsored programmes must be identified at the beginning, at the restart, and at the end of the programme. In accordance with the Television Law, sponsored programmes, as well as the identification of their sponsorship, may not directly encourage the purchase or rental of products or services of the sponsor or third parties, namely through specific promotional references to such products or services.
According to the Radio Law, sponsored programme slots must include an express mention of this fact at the beginning.
The Advertising Code lays down some specifications for certain claims.
In addition, advertising on the following subjects is limited to certain conditions:
The Advertising Code lays out specific rules regarding comparative advertising claims. Accordingly, comparative advertising is all advertising that identifies, explicitly or implicitly, a competitor or the goods or services offered by such competitor.
Furthermore, comparative advertising is only licit when the following conditions are met.
Additionally, whenever the comparison refers to a special offer, it must clearly and unequivocally indicate its term or, if applicable, that this special offer depends on the availability of the products or services.
Finally, the burden of proof regarding the veracity of the comparative advertising belongs to the advertiser.
The law is not clear on whether advertisers are permitted to use the name of a competitor, a competitor’s trade mark, or a competitor’s packaging in comparative advertising. This issue must be assessed in a case-by-case analysis. This is due to points 4, 5, and 7 in 3.1 Specific Rules or Restrictions. Although the law does not explicitly forbid using a competitor’s name or trade mark, the provisions can open the road to an interpretation of the Supervisory Authority in the sense that the advertiser, by using the competitor’s name or trade mark in a certain situation, may indeed be discrediting another trade mark or exploiting the reputation of a competitor in advertising and, as such, consider that these advertisers are infringing the Law.
In the authors’ understanding, it is not so much about packaging, as it is a broader concept and the average consumer will not as easily identify the product that the advertiser is comparing with.
An advertiser can challenge a claim made by a competitor in the general terms of the Advertising Code. If a claim is contested and the advertiser is unable to prove the claim made, it will be civilly liable for all damages caused.
Additionally, in this jurisdiction, comparative advertising that is not licit within the terms laid out above is also deemed an unfair commercial practice under Decree Law No 57/2008.
For the challenge of a claim, there are essentially two methods.
Additionally, there is a third alternative for several advertisers in this jurisdiction, which is submitting a claim with the Advertising Self-Regulatory body.
There are no rules specially directed to regulate ambush marketing. Nonetheless, in the general terms of the Advertising Code and the Unfair Commercial Practices Regime, ambush marketing is accounted for with sanctions and possibility of civil liability towards the infringing party.
Particularly, in the Portuguese jurisdiction, ambush marketing can be deemed a specific unfair commercial practice, as well as a deceiving commercial practice. The Unfair Commercial Practices Regime prohibits the following.
The Supervisory Authority is likely to use these articles as the base for ambush marketing situations and deem that said conduct falls under these two articles. The practice of these infractions can trigger the application of fines ranging from EUR1,700 to EUR24,000.
The general rules and principles on advertising are applicable to advertising in online and social media.
In this regard, the ARP has published a Guide of good practices for digital marketing communications and online behavioural advertising.
Moreover, Law No 27/2021 (“Portuguese Charter of Human Rights in the Digital Age”) provides that when using digital platforms, everyone has the right to:
When advertising online or via social media, other provisions of general national law must also be taken into account, such as civil, criminal, copyright, and personal data protection laws.
According to the E-Commerce Law, intermediary network service providers are not subject to a general obligation to monitor the information they transmit or store or to investigate possible offences committed within their scope.
Intermediary providers of network content association services that allow access to illegal content are liable, under common terms, for the information they store if they become aware of activity or information that is clearly illegal and do not immediately remove or disable access to that information.
On the other hand, the intermediary provider of network communication transmission services who has no intervention in the content of the messages transmitted or in the selection of these or the recipients and respects the conditions of access to information is exempt from all responsibility for temporary and automatic storage.
The Advertising Code stipulates that the advertiser, the professional, the advertising agency or any other entity that carries out the advertising activity, the holder of the advertising medium or the respective concessionaire, as well as any other party involved in the dissemination of the advertising message, are punishable as agents of the administrative offences provided for in the Advertising Code.
The general rules on advertising are applicable to online disclosures. In particular, advertising in social media must always be identified as such, in compliance with the principle of identifiability.
In addition, according to the E-Commerce Law, in advertising communications provided by electronic means, the following must be clearly identified so as to be easily understood by a common recipient.
There are no special rules in Portugal directly applicable to the use of social media platforms.
In Portugal, there are no special rules directly applicable to “native advertising”. The general rules apply. Namely, according to the Advertising Code, advertising must be unequivocally identified as such, whatever the means of dissemination used.
In influencer campaigns, all the rules already listed must be respected, in particular those provided for in the Advertising Code.
The Directorate-General for Consumer Affairs has published a guide for influencers and advertisers on commercial communication in the digital environment. This guide provides a series of suggestions for complying with the applicable legislation, in particular:
Portuguese law does not specify who is responsible for the content published by influencers (whether the influencers themselves or the advertiser).
According to Decree-Law No 7/2004 (“E-Commerce Law”), the intermediary provider of a server storage service shall only be liable for the information stored, under the common rules of civil liability, where it has knowledge of any clearly illegal activity or has information of such an activity and does not act expeditiously to remove or to disable access to such information.
In this regard, the Advertising Code stipulates that the advertiser, the professional, the advertising agency or any other entity that carries out the advertising activity, the holder of the advertising medium or the respective concessionaire, as well as any other party involved in the dissemination of the advertising message, are punishable as agents of the administrative offences provided for in the Advertising Code.
Therefore, the regulatory authority may consider that, depending on the situation, both the influencer and the advertiser are liable for the advertising content published.
The Unfair Commercial Practices Regime provides for a number of rules applicable to consumer reviews. In particular, it is considered a deceptive practice to:
Decree-Law 24/2014 also provides for some rules applicable to the due diligence measures that must be ensured by the online marketplace provider that provides access to consumer reviews.
Consumer review systems are the responsibility of the respective online marketplace provider that provides such a system. Therefore, in accordance with Decree-Law 24/2014, the online marketplace provider must adopt the appropriate due diligence measures, namely:
Online market providers must provide mechanisms for reporting false or abusive reviews and allow the supplier of the goods, or services provider, to respond to the review submitted.
Law No 41/2004 (“E-Privacy Law”) provides for the rules applicable to the sending of marketing communications through the use of automated calling and communication systems that do not depend on human intervention (automatic calling machines), fax machines or email, including SMS, EMS, MMS, and other similar types of applications. Accordingly, there are three different applicable situations.
If these rules are infringed, it could lead to a minimum fine of EUR1,500 and a maximum fine of EUR25,000 when committed by natural persons, and a minimum fine of EUR5,000 and a maximum fine of EUR5 million when committed by legal persons.
Regarding the rules applicable to telemarketing, the ARP’s Code of Conduct provides for the following.
Moreover, Law No 6/99 (“Advertising by telephone and fax regime”) provides that telephone advertising, using automatic systems with pre-recorded voice messages, is prohibited, unless the recipient authorises it before the communication is established.
The rules indicated in 6.1 Email Marketing are applicable to text messaging.
According to Data Protection Law, the consumer must be informed about the existence of automated decisions, including profiling and targeting, and, at least in such cases, useful information must be provided regarding the underlying logic as well as the significance and expected consequences of such processing for the data subject.
The ARP has published a Guide of good practices for digital marketing communications and online behavioural advertising.
As provided for in Law No 58/2019 (“Personal Data Protection Law”), with regard to the direct provision of information society services, the personal data of children can only be processed on the basis of consent when they have reached the age of 13. If the children are under the age of 13, processing is only lawful if consent is given by their legal representatives, preferably by means of secure authentication.
Failure to comply may result in a fine of up to EUR10 million or, in the case of an undertaking, up to 2% of its annual worldwide turnover for the previous financial year, whichever is higher.
The rules on data protection (namely the ones provided for in the GDPR) must be complied with.
Sweepstakes and contests are considered, within the meaning of Decree-Law No 422/89 (“Gambling Law”), to be related forms of games of chance. The operation of related forms of games of chance is subject to authorisation.
In addition, the operation of any related forms of games of chance by profit-driven entities is not permitted, except for contests of knowledge, quizzes, or others organised by newspapers, magazines, radio or television stations, and advertising contests promoting goods or services.
Related forms of games of chance may not develop themes that are characteristic of games of chance, namely poker, fruit, bells, roulette, dice, bingo, lottery of numbers or instant lottery, totobola and totoloto, nor may they replace the prizes awarded with money or tokens.
The Gambling Law defines games of chance as those whose outcome is contingent because it is based exclusively or fundamentally on luck. These include the following games.
The Law also foresees the concept of related forms of games of chance, which consist of operations offered to the public in which the hope of winning lies jointly in the luck and skill of the player, or in luck alone, and which award items with a predetermined economic value as prizes at the outset. This includes, in particular, prize raffles, tombola, sweepstakes, advertising competitions, knowledge competitions, and contests.
Games of chance – whose outcome is contingent because it is based exclusively or fundamentally on luck – may only be operated and practised in casinos in permanent or temporary gaming zones created by decree-law.
Responsibility for games of chance lies with the member of the government responsible for the tourism sector. It is the responsibility of the member of the government in charge to authorise the operation of new types of games of chance, at the request of the concessionaires and following an opinion from the Inspectorate-General for Gaming.
The right to operate games of chance is reserved by the state. The operation of games of chance may be granted by concession to private legal persons, incorporated as public limited companies or equivalent, with their registered office in a member state of the EU, or in a state signatory to the Agreement on the European Economic Area (EEA) which is bound by administrative co-operation in the field of taxation and the fight against fraud and money laundering, provided that, in the case of foreign companies, they have a branch in Portugal.
The concession to operate games of chance in casinos in gaming zones is awarded by public tender or restricted tender with prior qualification.
The operation of related forms of games of chance (which may include contests of skill if the hope of winning lies jointly in the luck and skill of the player) is subject to authorisation by:
Regarding free or reduced-price offers, the following laws must be considered.
The ARP’s Code of Conduct provides that the term “free”, used in situations such as “free gift” or “free offer”, can only be used:
For automatic renewal/continuous service offers under which a marketer can continue to ship and bill for products and services on a recurring basis until the consumer cancels, all consumer laws must be considered, namely the following.
The soon to be applicable EU Artificial Intelligence (AI) Regulation prohibits manipulative and exploitative practices. According to Recital 29, however, common and legitimate commercial practices, for example in the field of advertising, that comply with the applicable law should not, in themselves, be regarded as constituting harmful manipulative AI-enabled practices.
In Portugal, there are still no specific national rules related to the use of artificial intelligence (AI) in connection with the development of advertising content. Implementation of the Regulation may change this reality in a foreseeable future.
Law No 27/2021 (“Portuguese Charter on Human Rights in the Digital Age”), in addition, states that the use of AI must be guided by respect for fundamental rights, ensuring a fair balance between the principles of explanation, security, transparency, and accountability, taking into account the circumstances of each specific case and establishing processes designed to avoid any prejudice or discrimination. In addition, decisions with a significant impact on the sphere of recipients that are taken using algorithms must be communicated to those concerned, be subject to appeal, and be auditable.
In Portugal there are still no specific national rules related to making claims that a product is developed through the use of AI, is powered by AI, or has AI-related capabilities. Notwithstanding, the general terms of advertising law apply in these situations, and implementation of the EU AI Regulation may impact this reality in a foreseeable future.
Chatbots should be clearly identified as AI-powered when in contact with natural persons. There are, however, no special rules or guidance regarding the use of chatbots. General terms of law (in particular, AI regulations and consumer protection laws) apply.
Considering that virtual-asset service provision is regulated in this jurisdiction, such advertising falls under the scope of application of Law No 78/2021 (“Regime for the prevention and combat against non-authorised financial activity and consumer protection”), which provides for special rules regarding advertising.
According to Article 3 of such Law, advertising directed to the commercialisation of products, goods, or the provision of financial services can only be performed by authorised entities for such activity or a person acting on their behalf within the terms of the Law.
Otherwise, the general terms of advertising law apply.
In Portugal there are no specific national rules that apply to advertising within the metaverse. Therefore, the general terms of advertising law apply.
The Advertising Code sets a specific set of rules for several regulated products, such as alcoholic beverages, tobacco, treatment, and medicine in general, as well as HFSS products (products containing high energy, salt, sugar, saturated fatty acids, and processed fatty acids), gambling, education, and automobiles. In addition, laws specific to each sector establish rules applicable to the advertising of such products.
Concerning Alcoholic Beverages
Advertising may not:
Concerning Tobacco
These restrictions include vaping and heated tobacco unless the products do not contain any nicotine or tobacco.
Concerning HFSS Products
Treatment and Medicine
Gambling
Education
Concerning Automobiles
There are some limitations regarding the timing of advertising. Refer to 10.1 Regulated Products.
Further, Law No 27/2007 determines the following with regard to product placement.
See 10.1 Regulated Products.
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lisboa@abreuadvogados.com www.abreuadvogados.com/en/Comparing Priorities: Predictions and Effectiveness
In 2023, the Directorate-General for Consumers’ Affairs (DGC) had predicted its enforcement activity for 2024 would focus mainly on environmental claims and influencer marketing, as well as advertising aimed at minors.
Of the 72 decisions the Directorate-General for Consumers’ Affairs had predicted to issue in 2024 as an ideal target (60 final decisions in infringement proceedings initiated by the Directorate-General for Consumers’ Affairs, added to 12 decisions to initiate investigation proceedings), only 25% have been issued.
And among the administrative offences already launched by the DGC, the most noteworthy have been the presentation of prices in large-scale food retailers (ie, supermarkets) and the issue of misleading advertising, also in the non-food sector, which, interestingly, is not entirely aligned with the predictions made last year.
During the summer season, specifically, however, the DGC carried out an inspection of advertising and prices presented in connection with the purchase of airline tickets, in which 367 advertising messages were analysed, posted on 32 pages of websites and social networks (Facebook and Instagram) of ten economic operators, and five notices were issued, which are expected to lead to administrative offence proceedings against the five entities.
These five notices were the result of an inspection carried out during the month of July 2024 (between the 9th and 26th) on airfare advertising by travel agencies, in which five notices were issued against five companies.
And, according to the Administrative Authority, the conduct described (generally linked to the indication of the price of services) might be sanctioned with a fine of up to EUR45,000 per infringement.
Among other things, the DGC alleges that these travel agencies frequently:
Under the terms of Decree-Law No 138/90, as amended by Decree-Law No 162/99, the price of a service must be displayed in a visible, unequivocal and easy-to-read manner at the place where the services are offered to the consumer. In addition, the services made available to the consumer must contain the price per unit of measurement (per trip), thus indicating the total price expressed in currency that is legal tender in Portugal, and must include all taxes, fees and other charges that are passed on, so that the consumer can know the exact amount they have to pay. Each of the conducts corresponding to the commission of the offence criminalised here will be punishable by a fine of up to around EUR30,000.
However, the law recognises that it is possible, in certain cases, that the services offered are numerous and that there are very different conditions that do not allow for perfectly clear pricing. When this is the case, as it may be in the case of the provision of air transport services, this document can be replaced by a complete catalogue, turning the obligation to display it into an obligation to inform the public that such a catalogue is available.
On the other hand, under the terms of Decree-Law No 70/2007, in its current wording, a sale with a price reduction must unequivocally indicate the type of sale, the type of products, the lowest price previously practised, as well as the start date and duration. Infringement of the provisions can be punished with a fine of up to EUR24,000.
The companies now accused will have to present their defences and await the outcome of the proceedings: the closure of the investigation into the facts contained in the report or, alternatively, the judicial challenge of any charges that may be brought.
And DGC was not the only entity with auctoritas (authority) to criminally prosecute businesses for breaches of consumer law and business law mandates in connection with airplane fares.
Indeed, early this month, a Portuguese Court in Braga convicted Ryanair in restitution of the autonomous price paid by a consumer for the carrying of carry-on luggage (55x40x20 cm) in the passenger cabin. In short, the Court found that carry-on luggage transportation is an essential part of the service of aerial transport and, as such, the price presented to the consumer via advertising (ie, a commercial communication) must already include the price of transportation of the carry-on luggage.
This decision represents a significant precedent in the way (most) airplane fares are calculated and introduced to potential customers, and may open the door to litigation, eventually leading to decreased resort to hidden or delayed fares.
More importantly, for the purpose of this article, this decision illustrates an alignment between the concerns of individual consumers, brought before Courts, and the concerns of the Administrative Entity charged with consumer protection (DGC).
ARP (the advertising self-regulatory body in Portugal) has, in turn, showed priorities particular to its participants. Between September 2023 and September 2024, ARP issued ten decisions (which are mandatory for the parties).
Of these ten decisions, eight concerned, in isolation or in connection with other topics, the illicit acts of misleading advertising (in breach of the principle of truthfulness). Examples are Consultation 2J/2023 (on the influencing power of fake nudges), Consultation 4J/2023 (on the ability of a bottle to engineer water), Consultation 1J/2024 (on the absence of chemicals in foodstuffs) and Consultation 3J/2024 (on the introduction of wrongful comparison of prices to the consumer).
In Consultation 2J/2023, for example, a marketplace was found guilty of breaching offer and promotions regulations and, with that, breaching the principle of truth and transparency in advertising, by having placed shopping nudges in their market (namely, “offer timers”) which, ultimately, were uncovered as false advertising, since the counting down timer made it “appear that the offer had lasted for days and was time-limited, but the timer actually reset itself at midnight every night.”
In Consultation 2J/2024, in turn, opposing two telecommunications competitors, the defendant was found guilty of misleading advertising, for introducing a price, through television advertising, for a complex telecommunications service (Internet Data, Voice Calls and Television Pack) that, after meeting with the consumer, would increase to over double the original price advertised. Having considered that there was nothing in the advertising indicating it should not be taken literally by the consumer, the ARP came to the decision of conviction for misleading advertising, for presenting the consumer with a price that, ultimately, could never be obtained in practice.
Of those same ten cases, four were brought before the ARP by individuals (or foreign Supervisory Authorities on behalf of individuals) and six were brought before the ARP by competitors (or other participants in the market). Specifically, one case was brought directly by an individual; the British Advertising Supervisory Authority brought three cases on behalf of UK consumers against companies based in Portugal (Consultation 2J/2023, Consultation 4J/2023 and Consultation 4J/2024); and the remaining cases were brought by direct competitors of the defendants and, in one case, the case was brought to the ARP by an association of professionals, rather than a competitor.
The latter was Consultation 5J/2024, opposing the Portuguese National Association of Milk Industrials (as applicant) and a company selling a vegetable-based milk substitute (as defendant). The object of conflict was an advertising claim, by the defendant, that their product “is like milk but made for humans’, which the applicant considered, on the one hand, misleading advertising and, on the other, illicit comparative advertising. Not having managed to prove that their product was, indeed, “like milk” (has similar composition or nutritional properties), nor that it was healthier for humans than traditional milk products, the defendant was found guilty by ARP.
The cases brought by the British Supervisory Authority were connected, in most cases, to online marketplaces, where UK-based consumers had interacted with product or service providers based in Portugal. In Consultation 4J/204, for example, the British Advertising Supervisory Authority brought a claim against a seller of fish oil, for misleading advertising and false testimonial advertising, for having created a blog through which they disseminated commercial communications “rating various products, under the slogan ‘buyer’s guide’, with fake reviews, ie, ‘testimonials’ and/or ‘reviews’ from people who were not considered to be real consumers” and “promoting a better listing of the site’s own brand product” without making that clear to the consumer.
In conclusion
This topic (misleading advertising) remains crucial and fundamental to advertising litigation, whether administratively or in alternative conflict resolution mechanisms, corresponding to an almost default claim in almost all advertising conflicts. Comparative advertising, in turn, has increasingly become the object of advertising litigation.
Consultation 1J/2024, for instance, opposed two supermarkets, in connection with off-brand products offered for sale at the defendant’s establishment, advertised with the slogan “those who don’t love chemicals, shop here”. Having been able to provide evidence that their off-brand products, indeed, are manufactured and sold without resort to flavour enhancers and artificial colors, the defendant was able to demonstrate the truth in their statement. Furthermore, having identified that competitors’ products contained those same chemicals, the defendant was able to signal truthfulness in their second statement “the only off-brand that can make this claim”.
Consultation 3J/2024, in turn, opposed two supermarket chains, in connection with product pricing presentation, where the defendant was found guilty of breach of comparative advertising regulations, by using and introducing, to the consumer, wrongful pricing, for both their own products, which appeared cheaper than they were actually charging, and the products of their competitor, which were given higher prices than those practised. Not having been able to prove the prices indicated had been charged in effect, the defendant was convicted for breach of advertising regulations.
Traditional Portuguese jurisprudence and doctrine are more conservative in connection with the use of competitors’ designations, brands, symbols and evocations for the purpose of comparative advertising than courts at the European level (not to mention other member states’ jurisdictions). Companies might be, as such, attempting to push jurisprudential boundaries through litigation.
Advertising directed at minors, although introduced as a priority of the DGC for 2024, has not been highly litigated. Indeed, it was only the object of one recent ARP Consultation: Consultation 3J/2023, opposing an individual and a telecommunications company, for the use of minors in advertising for products not directed at, or connected or related to minors.
Whether companies were attentive of DGC priorities and adapted their advertising prior to dissemination, or whether the DGC (and competitors) were forced to re-focus on other themes, the fact is that litigation concerning the use of minors in advertising has had very little significance this past year. Nonetheless, it seems to still be a topic of concern for the legislator: although litigation nearly came to a halt, as in September 2024, a statute project was approved, to enact legislation specifically directed at the regulation of advertising of foodstuffs directed at children.
It would perhaps be worth remembering, in this analysis, as tentative (at least partial) justification for the perceived difference among the objects of conflict under the judicial and administrative jurisdiction and the ARP jurisdiction, that while courts, and especially the DGC, as Supervisory Authority for Consumer affairs, are oriented to consumer concerns, ARP has been designed as an arbitration mechanism for competitors (although individuals can also resort to its jurisdiction). As such, they may appear to have different regulatory priorities in consideration of the interests and values they have been charged with protecting.
One can hope that the termination of Administrative Proceedings, as well as ARP decisions and court decisions made publicly available, issued in 2024, will improve the quality and, importantly, the truthfulness of advertising in Portugal. One can also hope that, by comparing predicted and effective priorities, supervisory authorities and alternative conflict resolution mechanisms can better align their intentions with the market and commercial reality around them for their 2025 predictions.
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