Client updates / Regulation

Israeli cyber companies operating in Europe are exposed to the GDPR even though they are registered in Israel, and even if the information they collect is not processed or stored in Europe.

An amendment to the Israeli Consumer Protection Law, also known as the “Do Not Call Me Law,” is about to enter the enforcement phase on January 1, 2023. Inter alia, the law imposes liability on a business telemarketing its product or service, even if a third party is actually making the call.

Activity in the form of financial decentralization (Decentralized Finance - DeFi) does not exempt from requirements in the field of prevention of money laundering prohibition or compliance with sanctions. It turns out that DeFi is subject to the same "laws of gravity" as projects in the traditional financial industry.

The Israel Securities Authority’s (ISA) new draft amendment to the general permit to offer foreign brokerage services in Israel proposes to obligate permit holders to supervise the activities of marketers on their behalf. For example, permit holders must carry out due diligence examinations of marketers.

New privacy protection regulations drafted by the Israeli Ministry of Justice will obligate Israeli entities to protect data reaching Israel from the European Economic Area, i.e., from EU member states and Iceland, Norway, and Liechtenstein.

The Israeli Privacy Protection Authority recently published a document presenting its position and recommendations on the privacy protection aspects pertinent to waivers of medical confidentiality and disclosures of medical information during the hiring process.

The Israeli Privacy Protection Authority has published a document containing a series of recommendations that address the use of ordinary and non-designated applications for sharing information among a variety of parties.

The Tel Aviv District Court recently allowed a motion to certify a class action against the Volkswagen Group and its importer in Israel, Champion Motors Ltd. The class action focuses on the Dieselgate scandal, after an investigation discovered that Volkswagen installed emissions management software in its diesel-powered vehicles that falsifies air pollution data.

In light of the increase in fraud crimes in the digital space, the Israeli Justice Ministry has formulated recommendations for defining a policy to contend with ransomware attacks. The recommendations relate to both private entities and government bodies. The new recommendations are part of a more comprehensive examination conducted by the Justice Ministry of enforcement authorities’ handling of these cyberattacks, including regarding the provision of support to entities under attack, assistance to victims of fraud in the digital space, investigation, and enforcement.

To make it easier for fintech companies to operate in Israel, the Knesset Finance Committee has passed regulations to exempt several types of credit providers and financial service providers from a licensing duty.

The Israeli CMISA published two draft circulars about its intent to tighten the supervision over crypto assets, in the wake of the Celsius crypto meltdown.

This week, the Israeli government approved the joint proposal submitted by the Prime Minister and the Minister of Environmental Protection to obligate all government ministries to formulate climate action plans. The proposal was approved ahead of the upcoming United Nations Climate Change Conference, which will be held in Sharm El Sheikh, Egypt.

This declaration will help to maintain the European Union’s continuing recognition of the State of Israel as a country whose data protection laws are on par with the European Data Protection Regulation.

The Israeli Privacy Protection Authority issues instructions to report data breach events or concerns of data breach events immediately.

Sephora, the cosmetics giant of the LVMH group, must pay a USD 1.2 million fine for failure to comply with the California Consumer Privacy Act (CCPA), after receiving a warning from the California Attorney General and time to rectify its violations.

According to the Israeli Consumer Protection Authority’s draft directive, the disclosure obligation applies at all stages of a transaction, including when advertising and marketing an IoT product.

The publication presents the PPA’s position on the duty to inform on the collection and use of personal data (as derived from the Privacy Protection Law), specifically highlighting the duty to inform when using algorithm-based or AI-based decision-making systems.

The proposed regulation grants the European Commission the power to take measures against companies operating in the European market that receive significant government support from countries that are not members of the European Union.

Israeli district courts have already recognized the possibility of suing a monopoly for charging an unfair excessive price, but the Israeli Supreme Court’s recognition of this cause of action ends defendants’ potential arguments for opposing this very possibility.

CMISA recently published two new risk management circulars for financial service providers, including small entities.