800,000 Vodafone Customers Winning Refunds: Portugal's Supreme Court Ends Silent Billing Scheme

Portugal's Supreme Court has ordered Vodafone Portugal to reimburse approximately 800,000 customers who were charged for services they never requested, a ruling that judicial observers are hailing as a template for mass consumer litigation across Europe — and one that could fast-track compensation processes for similar cases in Spain.

The February 25 decision in case 22640/18.1T8LSB.9L1.S1 marks the culmination of years of legal wrangling over automatic service activation practices, and it does something courts have historically struggled to achieve: it translates a consumer victory on paper into a legally enforceable mechanism for refunds at scale.

Why This Matters

• Vodafone Portugal must now undergo a court-ordered audit to identify every customer who paid for unwanted add-ons — and return the money.

• Refunds could begin within 12 months, depending on the speed of forensic accounting and cooperation from the telecom operator.

• Unclaimed funds after 10 years revert to the Portuguese State, not the company — eliminating any incentive for the operator to delay or obscure payouts.

• Spain is watching closely: Portuguese class-action frameworks are now being used as a reference model as Madrid scrambles to comply with EU collective redress mandates.

What Vodafone Did — And Why It Was Illegal

The case centers on a practice known colloquially in the telecom sector as "silent upselling" — the automatic activation of premium services without explicit customer consent. These included extra data packages, voice bundles, and third-party content subscriptions that appeared on monthly bills without opt-in mechanisms or clear refusal pathways.

Portugal's Consumer Protection Law has long prohibited this, but enforcement was historically patchy. Vodafone Portugal argued that its terms of service contained broad activation clauses and that customers could cancel at any time — a defense the Portugal Supreme Court decisively rejected in a February 2022 ruling. That earlier judgment established liability. The new February 2026 decision goes further: it mandates the liquidation phase, forcing the company to open its books and calculate damages on a per-customer basis.

Legal experts note the court's language was unusually direct. The tribunal stated that "collective consumer protection cannot be emptied by procedural formalities that, in mass consumption contexts, render the recognized right impracticable." In other words: procedural roadblocks cannot be weaponized to shield companies from accountability in high-volume cases.

How the Refund Process Will Work

Once the ruling becomes final — meaning no further appeals are filed — the case returns to the Court of First Instance for what is formally known as the "liquidation incident." Here's what happens next:

Step 1: Forensic AuditThe court will appoint an independent expert to examine Vodafone Portugal's billing databases and customer accounts. The goal is to produce a comprehensive list of affected consumers and the amounts each is owed.

Step 2: Publication and NotificationUnder the ruling, Vodafone Portugal must fund public notices in major outlets, including Expresso and Correio da Manhã, alerting customers to the reimbursement process. Individual notifications may also be required where contact details are available.

Step 3: Payment or Third-Party AdministratorVodafone Portugal can either process refunds directly or, if the court deems it necessary, a third-party administrator will be appointed to manage disbursements. This safeguard is designed to prevent selective payouts or procedural foot-dragging.

Step 4: Unclaimed FundsAny sums not claimed within 10 years — due to customer death, emigration, or abandonment of the claim — will be transferred to Portugal's State Treasury. This provision prevents Vodafone from benefiting from unclaimed refunds and creates a statutory windfall for public coffers.

Impact on Residents and Expats

For the hundreds of thousands of affected customers, the amounts vary widely. Some may receive only a few euros for a single unauthorized charge; others, particularly families on tight budgets or those who remained on contract for years without scrutinizing itemized bills, could be owed hundreds of euros.

Octávio Viana, president of Citizens Voice Consumer Advocacy Association, emphasized that the ruling carries particular weight for lower-income households. "There are cases with very significant amounts for the economic organization of several families, including disadvantaged families," he told Lusa.

For expats and international residents, tracking eligibility could prove challenging if they've since changed phone numbers, returned home, or moved to another EU country. Legal advocates recommend:

• Retaining old Vodafone Portugal account numbers and contracts, even if service was terminated years ago.

• Monitoring the Expresso and Correio da Manhã announcements once the ruling becomes final.

• Contacting Citizens Voice directly if you believe you were affected but do not receive notification — the association has committed to supporting claimants through the process.

Why Spain Is Taking Notes

Portugal's class-action framework operates on an "opt-out" model — meaning all affected consumers are automatically included unless they explicitly withdraw. This contrasts sharply with the "opt-in" systems common in much of Europe, where consumers must actively join lawsuits to benefit.

The EU Collective Redress Directive (2020/1828), which all member states were required to transpose by December 2022, mandates stronger consumer protections and standardized class-action mechanisms. Portugal implemented the directive ahead of schedule through Decree-Law 114-A/2023. Spain, however, has lagged, only approving a draft bill in February 2025 — after a nearly two-year delay.

Spanish lawmakers and consumer advocates are now scrutinizing the Vodafone ruling as a proof-of-concept for how courts can manage liquidation in mass-tort cases. Spain's draft legislation includes a hybrid model: opt-out for claims under €3,000 per person, but opt-in for higher-value cases. Critics argue this creates a two-tier system that undermines the directive's intent.

Citizens Voice described the Portuguese ruling as "a beacon" for Spain, noting that "this decision represents a decisive contribution" for countries still grappling with how to operationalize collective redress without drowning courts in administrative complexity.

What Vodafone Portugal Must Do Now

The Portugal Supreme Court ruling explicitly calls on Vodafone Portugal to act with "responsibility, respect for the law, and respect for consumers." The court and Citizens Voice both stressed that cooperation during the liquidation phase is not optional — it is a legal obligation.

Vodafone Portugal has not yet issued a public statement on the timeline for compliance. Industry observers note that the company's reputation in the Portuguese market hinges on how transparently and efficiently it executes the refunds. Telecom giants in Portugal have faced mounting scrutiny over billing practices, data privacy, and customer service standards, and regulatory patience is thin.

The National Communications Authority (ANACOM) has signaled it will monitor the process closely. ANACOM has previously fined operators for billing violations and has expanded its enforcement powers under the 2022 Electronic Communications Law, which now requires explicit, documented consent for third-party charges on telecom bills.

The Bigger Picture: Vodafone and Telecom Accountability

The Vodafone case is not an isolated incident. Across Portugal, telecom operators have faced a steady drumbeat of complaints over:

• Unwanted service activations via WAP billing and third-party content providers.

• Erroneous tariff applications during promotional campaigns.

• Continued equipment charges after devices were returned.

• Excessive mobile data fees triggered without warning or opt-out options.

Portugal's consumer protection infrastructure — anchored by ANACOM and bolstered by advocacy groups like Citizens Voice — has become one of the more robust in Southern Europe. The Vodafone ruling reinforces a principle that is increasingly being embedded in EU law: companies cannot hide behind complexity when they harm consumers at scale.

As the liquidation phase unfolds over the coming months, the case will serve as a litmus test for whether Portugal's judicial system can deliver on the promise of practical, timely justice — not just declarative wins that never translate into actual refunds.

For now, affected customers are advised to hold onto old billing records, watch for official notices, and prepare to claim what they are owed. The court has spoken. The question is whether Vodafone Portugal will make this easy — or whether a third-party administrator will be needed to force compliance.