Price tagging requirement continues to be a mandatory obligation
Recently, the issue of price tagging in supermarkets and grocery stores has gained attention. This follows a public consultation issued by the Consumer Protection and Fair Trade Authority (CPFTA) seeking input on transitioning to digital price displays as part of the “What’s Good for Europe is Good for Israel” reform.
According to the consultation document, moving to digital price displays could reduce operational costs, prevent price discrepancies between shelf and checkout, and improve service and the shopping experience. However, concerns were raised that eliminating mandatory price stickers in favor of digital displays would allow grocery chains to change prices more easily, making it harder for consumers to compare prices effectively.
Background
At the start of Operation “Iron Swords,” a temporary regulation exempted grocery retailers from the requirement to affix price stickers to products. This exemption was granted due to severe workforce shortages, which raised concerns among retailers about potential fines for non-compliance. However, even after staffing shortages eased, the exemption was extended and only repealed following public criticism.
Legal Requirements
Under the Consumer Protection Law, businesses are required to display prices for all products and services offered for sale.
This means that the obligation to affix price stickers to each individual product applies not only to grocery stores but to all types of retail establishments, provided they offer goods or services for sale.
Until the Consumer Protection Law is amended to allow for digital price displays, all businesses must continue to mark the prices of their products and services. Further, even if the amendment is passed it will be as an alternative to the existing price-tag regime and will not eliminate the obligation entirely. Non-compliance may lead to legal proceedings, including class-action lawsuits and fines imposed by the CPFTA.
Why Is This Important?
Price information is essential for consumers to make informed decisions about potential transactions. Displaying the price of a product or service upfront, allows consumers to:
- Understand the cost of a transaction in advance.
- Compare prices effectively and make informed purchasing decisions.
- Ensure the checkout price matches the price displayed on the product.
What’s Next?
Following media reports that some grocery retailers are no longer adhering to price tagging requirements, the Minister of Economy has instructed the Consumer Protection Authority to step up enforcement efforts in this area. Concurrently, the Authority clarified that no changes have been made to the current price labeling requirements.
In Conclusion
So far there have been no amendments to the regulations concerning price labeling in stores. Businesses offering goods for sale must continue to affix price stickers to all products, regardless of the type of goods sold or the size of the store, to avoid exposure to financial penalties and class-action lawsuits.
***
Our Regulation team is available to assist with any questions regarding the implementation of these obligations.