Clients updates / Consumer Protection

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 seeking input on transitioning to digital price displays as part of the “What’s Good for Europe is Good for Israel” reform.

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

The uptrend in warning letters, enforcement proceedings, and motions to certify class actions against manufacturers and importers obligated to achieve defined recycling targets by virtue of the Processing of Packaging Law is likely to intensify, inter alia, because filing such motions does not involve paying a fee.

A new Israeli Supreme Court ruling states that, in particular instances, Israeli law will apply to engagements and agreements, even if those agreements stipulate that foreign law applies to them. In its decision, the court also issued several significant rulings that could affect commercial relations, in instances when cogent provisions of law apply.

Companies which distribute content online have been subject to the European Union’s Digital Services Act (DSA) since February 2024, which obligates them to protect their users from offensive and illegal content, enable users to report such content, etc. The DSA applies to any company whose content is accessible to European audience, regardless of its country of incorporation or the identity of its owners.

The Haifa District Court recently granted a motion to certify a class action regarding the manner in which price is displayed in installment transactions and the interest charged on those installments. This ruling holds great significance for businesses seeking to levy surcharges for customer installment payment options.

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.

A few days ago, the Israeli Competition Authority published for public comments draft public statement 1/22, presenting its position on vertical price maintenance arrangements. The final public statement 1/22 will replace the Competition Authority’s previous statement 2/17 published in 2018.

A recent amendment to the Consumer Protection Law seeks to place restrictions on telemarketing. As part of the amendment, the Consumer Protection and Fair Trade Authority will establish a database of consumers who don’t want to receive telemarketing calls from various businesses. Businesses will not be able to contact a consumer whose telephone number is registered in this database, except in specific circumstances.

Several new consumer protection updates: the obligation to disclose post-sale delivery and service policies, the expansion of provisions regarding the scheduling of providing services at consumers’ homes, and relief in the obligation to mark apparel products.

Recently, the Knesset approved a private bill that expands the scope of the “Spam Law.” The amendment is aimed at preventing the phenomenon whereby messages not necessarily commercial in nature are being sent to the general public, mainly through a robo-call system. 

On February 2018, the Knesset passed Amendment 66 to the Communications Law. The legislative amendment, colloquially known as “the Spam Law”, prescribes that when an ongoing transaction is terminated, a dealer will be prevented from continuing to send advertisements to the former customer, even without the consumer being required to send notice that he is opting out.

Online shopping websites not owned by Israelis, or whose owners have no registered representation in Israel (even if the website is offered in Hebrew), tend to enjoy a significant advantage over Israeli-owned websites. Namely, these foreign-owned websites operate according to the perception that they are not subject to the provisions of the Israeli Consumer Protection Law.

The Ministry of Economics and Industry recently published a draft bill for an amendment to the Consumer Protection Law. This draft bill proposes placing restrictions on telemarketing.

Apple is set to introduce a new feature in the Safari browser that will significantly reduce advertisers’ ability to collect and use personal data. The new feature, called Intelligent Tracking Prevention (ITP), imposes a 24-hour time limit on third party tracking cookies and a 30-day time limit on first party cookies.

The New York Circuit Court of Appeals ruled recently that when a new user confirms the “terms of service” and “privacy policy” on an application’s registration screen, even without perusing the legal documents provided through these links, such approval suffices to raise the user’s legal engagement with the company to the standing of a binding contract.

The Spanish Data Protection Authority slapped Facebook with a USD 1.4 million fine over three instances in which Facebook collected information on ideology, sex, religious beliefs, personal tastes, and browser history without properly notifying users what such information was being obtained for.

An amendment to the Consumer Protection Law was enacted recently, regulating the ways by which consumers can cancel transactions and imposing obligations on businesses to disclose to consumers how they can cancel transactions.

Recently, the Israeli Attorney General, in a legal opinion filed with the Israeli Supreme Court as part of an appeal filed by Facebook, opined that foreign companies (specifically those that do business via the internet) may not escape Israeli court jurisdiction even if the terms and conditions posted on their website state otherwise.