Consumer Protection Law, 5741-1981
חוק הגנת הצרכן, תשמ"א-1981
Published: 1981-04-26Consolidated Hebrew text as of 2026-08-02 · Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Chapter V-B: Determination that a Dealer is an Infringer in Aggravating Circumstances
Definitions – Chapter V-B§
22aa.
In this Chapter –
"person with special characteristics" – any of the following:
(1)a person with a disability, a veteran citizen and a new immigrant as defined in section 14c1(a);
(2)a minor;
(3)a helpless person, as defined in section 368a of the Penal Law, 5737-1977;
(4)a person who does not know the language in which the transaction is concluded to a degree sufficient for understanding the transaction;
(5)a person who has other special characteristics, as determined by the Minister under section 22al;
"supervised financial body", "payment services" and "payment services to a beneficiary" – as defined in the Payment Services Law;
"infringement" – an infringement of a provision of the provisions under this Law in the following matters:
(1)misrepresentation;
(2)exercise of unfair influence;
(3)a monetary refund to a consumer following a cancelled transaction;
"Execution Law" – the Execution Law, 5727-1967;
"Director of the Execution System" – as defined in section 4(b) of the Execution Law;
"aggravating circumstances" – use of a repeated and recurrent pattern of conduct, whether by act or by omission, in the same matter from the matters listed in the definition of "infringement", being one of the following:
(1)carried out towards a consumer who is a person with special characteristics;
(2)carried out with the use of threats or any intimidatory measures towards a consumer or towards members of the consumer's family, except in relation to an infringement that constitutes the exercise of unfair influence as referred to in section 3(b)(7);
(3)carried out while causing particularly significant harm to a large number of consumers.
Determination that a Dealer is an Infringer in Aggravating Circumstances§
22ab.
Where a dealer has committed an infringement in aggravating circumstances, the Commissioner may determine, in accordance with the provisions of this Chapter, that the dealer is an infringer in aggravating circumstances (in this Chapter – a dealer who is an infringer in aggravating circumstances), for the purpose of applying restrictions on such a dealer under section 18a of the Payment Services Law and section 78b of the Execution Law.
Notice of Intent§
22ac.
(a)Where the Commissioner is satisfied that a dealer has committed an infringement in aggravating circumstances and intends to determine that the dealer is a dealer who is an infringer in aggravating circumstances as referred to in section 22ab, the Commissioner shall give the dealer notice of such intent (in this Chapter – notice of intent).
(b)In the notice of intent the Commissioner shall state, inter alia, the following:
(1)the act or omission that constitutes the infringement and the provision of the Law or the regulation that was infringed;
(2)the aggravating circumstances of the infringement;
(3)the restrictions that will apply to the dealer by reason of the dispatch of the notice of intent and by reason of the determination of the dealer as a dealer who is an infringer in aggravating circumstances, if such a determination is made, under section 18a of the Payment Services Law and section 78b of the Execution Law;
(4)the dealer's right to state contentions before the Commissioner in accordance with the provisions of section 22ad.
(c)The Commissioner shall transmit a copy of the notice of intent to each of the following:
(1)to a payment service provider that is a supervised financial body, for the purpose of stopping the transfer of funds to a beneficiary who is a dealer in respect of whom a notice of intent has been given, as referred to in section 18a(b) of the Payment Services Law;
(2)to the Director of the Execution System, for the purpose of staying proceedings and funds in files in which the creditor is a dealer in respect of whom a notice of intent has been given, as referred to in section 78b(b) of the Execution Law.
Right to be Heard§
22ad.
(a)A dealer who has been given a notice of intent may state contentions before the Commissioner, in writing or orally as the Commissioner shall direct, within 14 days of the date of delivery of the notice of intent.
(b)The Commissioner shall extend this period, at the request of a dealer submitted during the period referred to in subsection (a), by an additional period not exceeding seven days.
Decision of the Commissioner§
22ae.
(a)Where the dealer has stated contentions before the Commissioner during the period referred to in section 22ad (in this Section – the hearing period), the Commissioner shall decide, after having considered the contentions raised, whether to determine that the dealer is a dealer who is an infringer in aggravating circumstances as referred to in section 22ab.
(b)
(1)The Commissioner shall give a decision within 14 days of the end of the hearing period, or of the day on which the dealer's contentions were received in accordance with section 22ad, whichever is earlier, and may, for special reasons, extend that period by seven additional days;
(2)If the Commissioner has not given a decision within the period referred to in paragraph (1), the Commissioner shall notify the payment service provider to the beneficiary accordingly, and the provisions of section 18a(d) of the Payment Services Law shall apply; nothing in the foregoing shall derogate from the Commissioner's authority to determine that the dealer is a dealer who is an infringer in aggravating circumstances as referred to in section 22ab, provided that 45 days have not elapsed from the end of the hearing period, or from the day on which the dealer's contentions were received in accordance with section 22ad, whichever is earlier;
(3)The Minister, on the proposal of the Commissioner and with the approval of the Economics Committee of the Knesset, may, by Order, extend the periods referred to in paragraph (1) if satisfied that this is required for the implementation of the provisions of this Chapter; the Minister may exercise the authority under this subsection after the lapse of 18 months from the date of commencement of the Consumer Protection from Dealers Committing Infringements in Aggravating Circumstances Law (Legislative Amendments), 5784-2024.
(c)Where the dealer has not stated contentions during the hearing period, the Commissioner shall determine that the dealer is a dealer who is an infringer in aggravating circumstances.
Determination Notice§
22af.
(a)Where the Commissioner has determined that the dealer is a dealer who is an infringer in aggravating circumstances, the Commissioner shall give the dealer notice thereof and shall set out therein the reasons for the decision (in this Chapter – determination notice).
(b)The Commissioner shall transmit a copy of the determination notice to each of the following:
(1)to a payment service provider that is a supervised financial body, for the purpose of stopping the execution of payment transactions for the benefit of a beneficiary who is a dealer who is an infringer in aggravating circumstances, for the purpose of returning funds to the payer and for the purpose of restricting the entry into a payment services contract with the beneficiary, as referred to in section 18a(c) of the Payment Services Law;
(2)to the Director of the Execution System, for the purpose of preventing the opening of new files for the benefit of a creditor who is a dealer who is an infringer in aggravating circumstances, and for the purpose of continuing the stay of funds and proceedings in existing files in which the creditor is a dealer who is an infringer in aggravating circumstances, for the purpose of closing such existing files and for the purpose of returning the funds received therein to the debtors, as referred to in section 78b(d) of the Execution Law.
Non-Determination Notice§
22ag.
(a)Where the Commissioner has decided not to determine that the dealer is a dealer who is an infringer in aggravating circumstances, the Commissioner shall give the dealer notice thereof (in this Chapter – non-determination notice).
(b)The Commissioner shall transmit without delay a copy of the non-determination notice to each of the following:
(1)to the payment service provider to the beneficiary that is a supervised financial body, for the purpose of transferring funds to the beneficiary who is a dealer in respect of whom a non-determination notice has been given, as referred to in section 18a(d) of the Payment Services Law;
(2)to the Director of the Execution System, for the purpose of cancelling the stay of proceedings and funds in files in which the creditor is a dealer in respect of whom a non-determination notice has been given, as referred to in section 78b(g) of the Execution Law.
Appeal§
22ah.
(a)An appeal against a determination of the Commissioner under section 22af may be lodged with the competent court in accordance with the provisions of section 22t(a); such an appeal shall be filed within 45 days of the date on which the determination notice was given to the dealer.
(b)The filing of an appeal against a determination of the Commissioner shall not stay the execution of the provisions under this Chapter that apply by virtue of the Commissioner's determination, unless the court has so ordered.
Publication of Determination Notice§
22ai.
(a)The Commissioner shall publish on the Authority's website a notice containing the following particulars in relation to a determination notice:
(1)the nature of the infringement and the aggravating circumstances on account of which the determination notice was given;
(2)particulars concerning the infringer;
(3)the name of the infringer – if the infringer is a corporation.
(b)The provisions of section 22u(b) to (f) shall apply, with the necessary modifications, to the publication of the determination notice.
Determination in Respect of a Dealer Affiliated with a Dealer who is an Infringer in Aggravating Circumstances§
22aj.
(a)In this Section –
"person of influence", in a dealer who is an individual – a person who has the ability to direct the activity of the dealer, directly or indirectly, excluding an ability arising solely from the fulfilment of a role as an office holder in the dealer; for this purpose, a person who finances more than 50% of the scope of the dealer's activity shall be deemed a person of influence in the dealer;
"affiliated person", in relation to a dealer who is an infringer in aggravating circumstances – any of the following:
(1)a corporation controlled by a dealer who is an infringer in aggravating circumstances;
(2)a controlling shareholder in a dealer who is an infringer in aggravating circumstances;
(3)a corporation whose controlling shareholder is a controlling shareholder in a dealer who is an infringer in aggravating circumstances;
(4)a corporation whose shareholder or partner composition, as the case may be, is substantially similar to such composition of the dealer who is an infringer in aggravating circumstances;
(5)a dealer who is an individual in whom a person of influence is a dealer who is an infringer in aggravating circumstances;
(6)a person of influence in a dealer who is an individual who is a dealer who is an infringer in aggravating circumstances;
(7)a dealer who is an individual in whom a person of influence is a person of influence or a controlling shareholder in a dealer who is an infringer in aggravating circumstances;
(8)a person who is responsible on behalf of the dealer who is an infringer in aggravating circumstances for the payment of wages;
(9)a person who serves as an office holder in a dealer who is an infringer in aggravating circumstances;
(10)a dealer in whom a person serving as an office holder served as an office holder in a dealer who is an infringer in aggravating circumstances;
(11)a person who is a relative of a dealer who is an infringer in aggravating circumstances or of the controlling shareholder thereof, or a corporation that is controlled by a relative of a dealer who is an infringer in aggravating circumstances, or a corporation that is controlled by a relative of a controlling shareholder in a corporation that is an infringing dealer;
"office holder", in a dealer –
(1)in relation to a dealer who is a corporation – an office holder as defined in the Companies Law, 5759-1999;
(2)in relation to a dealer who is an individual – a person who manages the dealer's activity, as well as an authorised signatory on the dealer's business account;
"relative" and "control" – as defined in the Companies Law, 5759-1999.
(b)Where a dealer is affiliated with a dealer who is an infringer in aggravating circumstances (in this Section – an affiliated dealer) and one of the circumstances listed below obtains in relation to the dealer's business activity, the Commissioner may determine that the affiliated person is also a dealer who is an infringer in aggravating circumstances:
(1)the dealer who is an infringer in aggravating circumstances has transferred the principal part of its business activity to the business activity of the affiliated dealer;
(2)in accordance with procedures directed by the Commissioner – the pattern of conduct of the affiliated dealer towards the consumer is similar to the pattern of conduct on account of which the determination notice was given to the dealer who is an infringer in aggravating circumstances.
(c)Where the Commissioner is satisfied that the dealer is affiliated with a dealer who is an infringer in aggravating circumstances and that the circumstances in subsection (b) obtain in relation to the dealer's business activity, and the Commissioner intends to determine that the dealer is a dealer who is an infringer in aggravating circumstances, the Commissioner shall give the dealer notice of the intent to so determine (in this Section – notice of intent).
(d)In the notice of intent the Commissioner shall state, inter alia, the following:
(1)the circumstances on account of which the Commissioner intends to determine that the dealer is a dealer who is an infringer in aggravating circumstances, as referred to in subsection (b);
(2)the restrictions that will apply to the dealer by reason of the dispatch of the notice of intent and by reason of the determination of the dealer as a dealer who is an infringer in aggravating circumstances, under section 18a of the Payment Services Law and section 78b of the Execution Law;
(3)the dealer's right to state contentions before the Commissioner in accordance with the provisions of section 22ad as applied under subsection (e).
(e)Where a notice of intent as referred to in subsection (c) has been given to an affiliated dealer, the provisions of sections 22ac(c) to 22ai shall apply, with the necessary modifications.
Delegation of Commissioner's Authority§
22ak.
The Commissioner may delegate the Commissioner's powers under this Chapter to the Commissioner's deputy, and notice thereof shall be published on the Authority's website.
Regulations Concerning Consumers with Special Characteristics§
22al.
The Minister, with the approval of the Economics Committee of the Knesset, may prescribe additional consumers who shall be considered persons with special characteristics for the purposes of the provisions of this Chapter.
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Contact Us →Chapter VI: Penalties and Remedies
Penalties§
23.
(a)A dealer who has done any of the following is liable to one year's imprisonment or a fine of seven times the fine referred to in section 61(a)(2) of the Penal Law, 5737-1977 (in this Law – the Penal Law) –
(1)did something likely to mislead a consumer contrary to the provisions of section 2(a), (b) or (c);
(2)exercised unfair influence as referred to in section 3(b);
(3)published misleading advertising contrary to the provisions under section 7(c);
(4)published advertising or adopted other marketing methods directed at minors contrary to the provisions of section 7a;
(5)in a transaction concerning the acquisition of vacation units, did not comply with the provisions of section 14a;
(6)obstructed a person acting lawfully under this Law from exercising the person's powers, or refused, without reasonable justification, to appear before such a person or to provide information or another thing at that person's request, contrary to the provisions of sections 21 and 22;
(6a)violated an administrative order given in accordance with the provisions of section 21c;
(7)(Repealed)
(b)A dealer who has done any of the following is liable to a fine of seven times the fine referred to in section 61(a)(2) of the Penal Law –
(1)failed to disclose a matter to a consumer contrary to the provisions under section 4;
(2)used a name from which it may be inferred that the dealer's purpose is consumer protection, contrary to the provisions of section 7b;
(3)violated the provisions under section 13 concerning deposits and guarantees;
(3a)in a continuing transaction in the matter of medical services –
(a)did not sign a written contract with the consumer, did not give the consumer a disclosure form, or entered into a transaction with a consumer for a fixed period exceeding one year, all contrary to the provisions of section 13e;
(b)following cancellation of the transaction by the consumer, charged the consumer cancellation fees contrary to the provisions of section 13f(a)(1) or (2), or did not return to the consumer that part of the transaction price that was paid or did not cancel the charge, contrary to the provisions of section 13g;
(4)in a hawking transaction, did not comply with the provisions under section 14;
(5)(Repealed)
(6)in remote marketing or in a remote sale transaction, did not disclose particulars to the consumer or did not supply a written document contrary to the provisions of section 14c;
(7)following cancellation of a transaction by a consumer, acted contrary to the provisions of section 14e;
(8)(Repealed)
(c)A dealer who has done any of the following is liable to a fine of three times the fine referred to in section 61(a)(2) of the Penal Law –
(1)(Repealed)
(2)violated the provisions under section 5 concerning the drafting of a contract, inspection thereof and delivery thereof;
(3)(Repealed)
(4)violated the provisions under section 10 concerning payment of the lower amount;
(5)(Repealed)
(6)(Repealed)
(7)(Repealed)
(8)violated the provisions under sections 17b(a) to (c), 17b(d), 17c, 17d or 17f concerning the duty to display or publish the prices of assets and services or concerning the collection of the binding price thereof;
(9)(Repealed)
(10)(Repealed)
(d)Where the offence is a continuing offence, the court may impose an additional fine at a rate of up to five percent of the amount of the fine prescribed for that offence, for each day on which the offence continues beyond the date on which a notice was given or an Order was made, or beyond the period of time specified in the notice or the Order, whichever is the later; for this purpose –
"notice" – a notice given under section 21(4);
"Order" – an Order made by the court under section 30.
(e)A person who, within three years, commits an additional offence under this Section is liable –
(1)for offences under subsection (a) – to one year's imprisonment or double the fine prescribed for those offences;
(2)for offences under subsections (b) and (c) – to double the fine prescribed for those offences.
(f)Where an offence from among the offences listed in subsections (a), (b) or (c) is committed by a corporation, it is liable to double the fine prescribed for that offence.
(g)The provisions of section 237 of the Criminal Procedure Law [Consolidated Version], 5742-1982, concerning the service of documents, shall apply, with the necessary modifications, to the delivery of an Order under this Law.
Aggravating Circumstances§
23a.
(a)Where an offence under section 23(a)(1) or (2) is committed in aggravating circumstances – the offender is liable to three years' imprisonment or a fine of twenty times the fine referred to in section 61(a)(4) of the Penal Law.
(b)In this Section, "aggravating circumstances" – any of the following:
(1)the act relates to a particularly large number of consumers;
(2)the act caused particularly serious harm to a consumer or to a group of consumers;
(3)the offender derived particularly large profits or benefits from the act.
(4)the offence was committed against or was directed at elderly persons, helpless persons or minors, or against a public of consumers in a state of intellectual, mental or physical weakness, or against persons who do not know the language in which the transaction was concluded to a degree sufficient for understanding the transaction;
(5)an offence under section 23(a)(1) was committed by asserting a fact that the person asserting it knows to be untrue or does not believe to be true.
Imposition of a Fine after Exemplary Damages have been Awarded under Section 31a§
23b.
When imposing a fine on a dealer who has been convicted of an offence under section 23, the court may take into account the fact that exemplary damages under section 31a have been awarded against that dealer by a final judgment in respect of the act for which the dealer was convicted.
Additional Powers of the Court§
24.
Where a person has been convicted of an offence under section 23, the court may, in addition to any other penalty, order –
(1)that goods of the accused in which or in relation to which the offence was committed, or the proceeds of their sale, be forfeited, in whole or in part;
(2)that a business of the accused be closed for a period to be determined by the court and in a manner to be determined by the court;
(3)that a licence granted to the accused be revoked or suspended for a period to be determined by the court.
Liability of Employer, Principal and Office Holder in a Corporation§
25.
(a)An employer, a principal and an office holder in a corporation are obliged to supervise and to do everything possible to prevent the commission of an offence as referred to in section 23 by an employee of the employer, by the employer's agent, by the corporation or by an employee of the corporation, as the case may be; a person who violates this Section is liable to a fine as referred to in section 61(a)(3) of the Penal Law; for the purpose of this Section, "office holder in a corporation" – a director, an active manager, a partner other than a limited partner, or a person holding a position who is responsible on behalf of the corporation for the field in which the offence was committed.
(b)Where an offence under section 23 has been committed by an employee, an agent, a corporation or an employee of the corporation, it shall be presumed that the employer, the principal or the office holder in the corporation, as the case may be, has violated the duty imposed under subsection (a), unless the employer, principal or office holder has proved that everything possible was done to fulfil that duty.
26.§
(Repealed — תש״ס)
27.§
(Repealed — תשע״ד־4)
Undertaking by the Dealer§
28.
(a)Where the Commissioner considers that a person has committed an offence against the provisions of section 25, the Commissioner may, with the approval of the Attorney General or the Attorney General's representative, accept from that person a written undertaking towards the Commissioner –
(1)to refrain from an act or omission specified in the written undertaking which, in the Commissioner's opinion, constitutes an offence under this Law; an undertaking under this paragraph shall be accompanied by a security, with or without guarantors, in an amount not exceeding the level of the fine referred to in section 23(a), and for a period not exceeding two years;
(2)(Repealed)
(3)(Repealed)
(b)A person who has given an undertaking as referred to in subsection (a) shall not be subject to criminal proceedings under section 25 in respect of an act or omission that served as the basis for giving the undertaking.
(c)Where a person has been convicted of an offence that the person undertook to refrain from committing under subsection (a)(1), the court may do any of the following:
(1)forfeit the security, in whole or in part, and not impose an additional penalty on the accused;
(2)impose a penalty for the offence but leave the security in force without forfeiting it;
(3)forfeit the security, in whole or in part, and impose any other penalty for the offence.
(d)(Repealed)
(e)In this Section, "person" – excluding a corporation.
Exemption§
29.
Where an asset is sold by a court, an execution office or another authority by law, or by a person selling on behalf of the State an asset that has been forfeited or abandoned in the State's favour, or another asset that the State has not acquired or used, the sale shall not be regarded as a transaction for the purposes of sections 2, 4, 6 and 7, provided that the offer for sale disclosed the fact that assets of this type are being offered for sale and warned the consumer that the nature of their principal characteristics is unknown and that the authority bears no responsibility therefor.
Court Order to Prevent an Offence§
30.
On the application of the Attorney General or the Attorney General's representative or the Commissioner, the court may –
(1)order any person to refrain from an act that constitutes an offence under this Law and to provide security therefor;
(2)order any action necessary to prevent such an offence.
Damages§
31.
(a)An act or omission contrary to Chapters II, III, IV or IV-A shall be treated as a tort under the Civil Wrongs Ordinance [New Version].
(a1)The right to remedies in respect of such a tort is vested in a consumer who has been injured by the tort, and also in a dealer who has been injured, in the course of the dealer's business, by misrepresentation as referred to in section 2.
(a2)Chapter VI-A shall not apply to a dealer injured by a tort as aforesaid in the course of the dealer's business.
(b)
(1)Where the court is satisfied that an act or omission of the defendant caused or is likely to cause a defect to the public or to a part thereof, and the plaintiff was assisted by a consumer organisation in filing the action, the court may order, in addition to the remedy awarded to the plaintiff, that compensation be paid to that consumer organisation in an amount not exceeding four times the damage caused to the plaintiff or the sum of NIS 14,750, whichever is the greater; the Minister of Justice, with the approval of the Economics Committee of the Knesset, may alter the said amount;
(2)An alteration of the amount pursuant to changes in the index from the index published in the month in which it was last fixed does not require the approval of the Economics Committee of the Knesset; however, the amount shall not be increased under this paragraph before three months have elapsed from the date of the previous increase;
(3)In this subsection, "index" – the consumer price index published by the Central Bureau of Statistics.
(c)In this section, "consumer organisation" – the Israel Consumer Council or another organisation approved by the Minister of Justice for this purpose.
Exemplary Damages§
31a.
(a)Where a transaction was entered into between a dealer and a consumer and the dealer breached, in connection with that transaction, a provision from among the provisions listed below, the court may award, in respect of that breach, damages that are not dependent on loss (in this section – exemplary damages), in an amount not exceeding NIS 10,000:
(1)A consumer requested that a dealer refund the consideration paid by the consumer and in the manner in which it was paid, pursuant to section 4c(b), after the dealer failed to act in accordance with the goods-return policy set out in the notice under section 4c(a) – and the dealer did not refund the consumer the full consideration as aforesaid;
(1a)A consumer requested that a dealer supply the asset or service to the place as agreed between the parties, after the dealer misrepresented to the consumer the place to which the asset or service would be supplied as referred to in section 2(a)(3a) – and the dealer did not supply the asset or service to the place agreed between the parties as aforesaid;
(2)A consumer requested that a dealer refund the consideration paid by the consumer and in the manner in which it was paid, pursuant to section 4c(b) and (c), after the dealer failed to display a notice detailing its policy regarding the return of goods otherwise than due to a defect, pursuant to section 4c(a) – and the dealer did not refund the consumer the full consideration as aforesaid;
(2a)In a fixed-term transaction – a consumer requested that a dealer cease charging the consumer payments after the date of termination of the transaction or the obligation pursuant to section 13a(c), or a written notice was not given to the consumer pursuant to section 13a(d) or pursuant to section 13e(f)(2), as the case may be – and the dealer continued to charge the consumer payments contrary to those provisions;
(2b)A consumer requested to cancel a continuous transaction by means of a cancellation notice pursuant to the provisions of section 14i – and the dealer continued to charge the consumer payments in respect of the transaction, contrary to the provisions of section 13d(c);
(2b1)A consumer claimed that a dealer had charged the consumer an excess amount – and the dealer did not refund the consumer the refund amount due to the consumer pursuant to the provisions of section 13d1;
(2c)A consumer requested of a dealer to pay for services or goods without a commission as referred to in section 13h(b), or to pay as referred to in one of the manners listed in section 13h(c) – and the dealer did not act accordingly;
(3)A consumer requested that a dealer restore what the dealer had received by virtue of a canvassing agreement, pursuant to section 14(b), following cancellation of the agreement pursuant to section 14(a) or 14c1(b) – and the dealer did not restore to the consumer what had been received by virtue of the agreement as aforesaid;
(4)A consumer requested that a dealer refund the portion of the transaction price paid by the consumer, or a consumer requested to cancel the charge thereon, pursuant to section 14e(a)(1) or 14e(b)(1), following cancellation of a contract for the purchase of a vacation unit pursuant to section 14a(c) or cancellation of a distance selling transaction pursuant to section 14c(c) or 14c1(c) – and the dealer did not refund the consumer the portion of the transaction price or did not cancel the charge as aforesaid;
(4a)A consumer requested that a dealer refund the portion of the transaction price paid by the consumer, or a consumer requested to cancel the charge thereon pursuant to section 13g(1), following cancellation of a continuous transaction concerning medical services pursuant to section 13f(a)(1) or (2) – and the dealer did not refund the consumer the portion of the transaction price or did not cancel the charge as aforesaid;
(4b)A consumer who entered into a distance selling transaction for the provision of tourism services as referred to in section 14c2, who has the right to cancel it pursuant to the cancellation policy of the tourism service provider outside Israel, requested that the dealer refund the portion of the transaction price paid by the consumer, or a consumer requested to cancel the charge thereon following cancellation of such a transaction – and the dealer did not refund the consumer the portion of the transaction price or did not cancel the charge as aforesaid;
(5)A consumer requested of a dealer that the consumer be charged the price displayed on the goods, pursuant to section 17b(d), even if the price at the till is higher – and the dealer did not act accordingly;
(6)A consumer requested to pay the price of an asset or service in Israeli currency in accordance with the exchange rate fixed in the First Schedule, pursuant to section 17g(b) – and the dealer refused to allow payment as aforesaid;
(7)A consumer requested of a manufacturer of goods or of a dealer to receive a warranty certificate, as required pursuant to section 18a(5), or a consumer requested of a dealer to receive a warranty sticker, as required pursuant to section 18a(a1) – and the manufacturer or the dealer, as the case may be, did not deliver a certificate or sticker as aforesaid;
(8)A consumer requested of a manufacturer of goods or of a dealer that a defect discovered in goods sold to the consumer be repaired, or that spare parts be supplied for the purpose of repairing the goods, as required pursuant to section 18a(1) – and the manufacturer or the dealer, as the case may be, did not repair any such defect during the warranty period without consideration, or did not supply spare parts as aforesaid until the end of the warranty period, within the period fixed for that purpose pursuant to that section.
(b)An action for exemplary damages against a dealer pursuant to subsection (a) shall not be filed unless the consumer has sent or delivered a request pursuant to that subsection, in writing, including by means of electronic communication; for the purpose of paragraph (2b), it is sufficient that the consumer delivered a cancellation notice pursuant to section 14i(a), excluding paragraph (1) thereof; and for the purpose of paragraph (4), it is sufficient that the consumer cancelled the transaction as referred to in sections 14a(c), 14c(c) and 14c1(c).
(c)
(1)Notwithstanding the provisions of subsection (a), the court may award, in respect of a breach as referred to in that subsection, exemplary damages in an amount exceeding NIS 10,000 but not exceeding NIS 50,000, if it finds that the breach is a repeated breach or a continuing breach or that it was committed in aggravating circumstances as defined in section 23a(b);
(2)In this subsection –
"repeated breach" – a breach of a provision from among the provisions under one of the paragraphs of subsection (a), within two years of a previous breach of a section listed in that paragraph for which a conviction was entered pursuant to section 23;
"continuing breach" – a breach of a provision from among the provisions of the sections listed in subsection (a), after a notice has been given pursuant to section 21(4) or an Order has been made pursuant to section 30, or after the period of time fixed in such a notice or Order has expired, whichever is the later.
(d)When determining exemplary damages to be awarded to a dealer, in respect of a breach as referred to in subsection (a), the court may take into account the fact that that dealer was convicted, in respect of the same act, of an offence under section 23.
(e)When fixing the amount of the exemplary damages, the court shall take into account, inter alia, the considerations listed below, and shall not take into account the amount of loss caused to the consumer as a result of the commission of the breach:
(1)law enforcement and deterrence against its breach;
(2)encouraging the consumer to exercise the consumer's rights;
(3)the severity of the breach, its monetary scope and its circumstances;
(4)the monetary value of the transaction in connection with which the breach was committed;
(5)the monetary scope of the dealer's business;
(6)the amount of the fine fixed in respect of that breach pursuant to sections 23 or 23a, if such a fine is fixed.
(f)Nothing in the provisions of this section shall derogate from the right of a consumer to damages pursuant to section 31 or to any other remedy, in respect of the same breach.
Cancellation of Transaction§
32.
(a)Where a transaction was made and it becomes apparent that an act or omission was committed in connection therewith that constitutes misrepresentation or exploitation of distress as referred to in sections 2 and 3, and they are material in the circumstances of the matter, and in the case of misrepresentation – even if the dealer was not the one who misrepresented, the consumer may cancel the transaction within a reasonable time from the date on which the consumer became aware of the misrepresentation or from the date on which the consumer became aware that the exploitation of distress had ceased, as the case may be.
(b)Where a transaction is cancelled as referred to in subsection (a), the dealer shall restore to the consumer, within seven days from the date on which the dealer received notice of the cancellation, the consideration paid by the consumer for the transaction, in the same manner in which the consumer paid; and if the transaction was a transaction for the sale of an asset – the consumer shall restore to the dealer the asset that is the subject of the transaction, by making it available to the dealer at the place where it was delivered to the consumer; if the transaction was a continuous transaction in which the provision of the service thereunder had commenced – the consumer shall pay the dealer the proportionate consideration under the terms of the transaction, for the service provided to the consumer up to the delivery of the notice of cancellation.
(b1)Nothing in the provisions of subsection (b) shall derogate from the right of a dealer to claim damages on account of the fact that the value of the asset that is the subject of the transaction has diminished as a result of a significant deterioration in its condition.
(c)The Minister may prescribe by Regulations particulars whose non-disclosure to the consumer shall constitute grounds for cancellation of the transaction; the provisions of this section shall apply also to such a cancellation.
Publication of Judgment or Correction of Publication§
33.
(a)The court may, following a conviction or an order to pay under this Law, order that a final judgment or a summary thereof, or a correction of a misleading publication, be published to the public, in the form and manner that it shall determine, and direct who shall bear the costs of publication.
(b)Where the court has directed that the accused shall bear the costs of publication, those costs shall be treated as a fine imposed by the court.
Evidence of Publication§
34.
Where a copy of a newspaper or other printed matter distributed to the public, in which a misleading publication was printed, is submitted, that shall serve as prima facie evidence that the publication was indeed made in that newspaper or printed matter.
Customs Powers§
35.
For the purpose of the powers of the Customs Authority and customs officers, importation contrary to sections 2(b) and 17 shall be regarded as an offence against customs law, and a customs officer shall be entitled to seize the goods in respect of which or in relation to which the offence was committed, treating them as forfeited goods within the meaning of the Customs Ordinance.
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