Consumer Protection and Fair Trade Authority: Businesses Must Disclose Changes to Product Characteristics or Components

Israel’s Consumer Protection and Fair Trade Authority (ICPA) recently issued a position paper regarding the disclosure obligations businesses must meet when changing product characteristics or components. According to the position paper, any material change in a product’s characteristics or components must be clearly and prominently disclosed on the product itself, allowing consumers to make an informed purchasing decision. This is because consumers typically do not recheck a product’s features or ingredients when they purchase it regularly.

This new guideline builds on the ICPA’s position issued five years ago concerning “package downsizing,” which established the requirement to notify consumers when product size or weight is reduced.

Changes covered under this new guideline include changes to product color, country of origin, features, scent, caloric content, and any other consumer-perceived attributes. The guideline also clarifies that a “material detail” under Section 2 of the Consumer Protection Law extends beyond the specific list in the law. A detail that may not be considered material when a product enters the market could become material as consumer perceptions of the product evolve.

According to the new guideline, the disclosure method should allow consumers to easily notice the change, for example, by displaying it directly on the front of the product or on a sticker affixed to the front. The disclosure period must be reasonable under the circumstances and should last at least six months.

It is important to note that the responsibility for implementing this disclosure obligation lies with the manufacturer, importer, and retailer.

Failure to provide such disclosure may constitute misleading conduct, given the broad interpretation of the prohibition on deception under Section 2 of the Consumer Protection Law, especially when the product’s packaging remains identical or similar.

In light of the above, we strongly recommend that businesses consider providing specific disclosure to customers whenever logistical changes occur, such as a change in manufacturing plant or supplier, to help ensure full compliance with legal and regulatory requirements, mitigate legal risks, and maintain consumer trust.