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 III: Provisions Regarding Types of Transactions
Definitions§
8.
In this Chapter –
"cash price" – the price fixed for an asset or a service if it is paid in full at the time of the conclusion of the sale agreement or the service agreement;
"credit price" – the price fixed for an asset or a service if it includes a supplement over the cash price by reason of its not being paid in full at the time of the conclusion of the sale agreement or the service agreement;
"instalment price" – payments by instalments of the price fixed for an asset or a service that do not include a supplement over the cash price by reason of its not being paid in full at the time of the conclusion of the sale agreement or the service agreement;
"special sale" – an end-of-season sale, a sale for full or partial clearance, a sale on the occasion of any event, a sale in which the consumer is offered a benefit in addition to the goods or services for which they paid, or any other sale in which the goods or services of the business, all or some of them, are offered at reduced prices for a certain period, otherwise than by way of granting a discount to a particular consumer;
"credit transaction" – a transaction for which a credit price is fixed;
"advance payment" – a prepayment of the price, in whole or in part, before delivery of the asset or provision of the service; for this purpose, the giving of a bill, within the meaning of the Bills of Exchange Ordinance, shall be deemed a payment even if it is given for a date later than the date of its issue;
"hawking" – the offering of a transaction to a consumer by a dealer, or by a person on the dealer's behalf, who comes uninvited to the consumer's place of residence, military service, employment, studies or their vicinity, as well as to any place that is not the dealer's or their representative's place of business (hereinafter – the consumer's premises), or a proactive approach by a dealer to a consumer in any manner, following which the dealer, or a person on the dealer's behalf, reached the consumer's premises in order to enter into a transaction.
Notice of Particulars in a Credit Transaction§
9.
(a)The Minister may prescribe by Order goods and services in respect of which a dealer shall not fix a credit price in a transaction with a consumer unless the dealer has notified the consumer in advance, in the manner prescribed in that Order, of the following particulars, all or some of them:
(1)the credit price and the cash price;
(2)the rate of interest, calculated on an annual basis, included in the credit price;
(3)the nature and amount of any other supplement to the price;
(4)the rates of payment of the credit price, and in hire-purchase – of the hire, and their due dates;
(5)any term under which the consumer's rights will be adversely affected, and any interest or fine that will be imposed on the consumer, due to non-fulfilment of any condition of the transaction;
(6)any stipulation regarding the law of evidence, rules of procedure or the local jurisdiction of the court;
(7)any other particular.
(b)The Minister may by Order prescribe goods and services which, if sold or provided in exchange for an instalment price, shall impose an obligation on the dealer to notify the consumer in writing of every term as detailed in subsection (a)(4), (5) and (6) that has been fixed for the transaction.
Stating a False Difference§
10.
If it is found that the difference between the cash price and the credit price, or the rate of interest, or the amount of any other supplement, is in fact greater than that of which the dealer notified under section 9, or that the instalment price is higher than the cash price, the consumer may pay according to the lower amount, unless the dealer has proved that the source of the discrepancy was a bona fide error that the consumer could have identified in the circumstances of the transaction.
Non-Compliance with an Order§
11.
If the dealer has not complied with the provisions of an Order made under section 9, the court may, on the application of a consumer and having regard to the circumstances of the matter, including the date on which the application was filed, cancel the transaction and order that the subject matter of the transaction be returned to the dealer and the consideration or part thereof to the consumer, and may order the dealer to pay costs incurred by the consumer and give any other direction that appears just.
Stipulation Regarding Payments§
12.
(a)If in a credit transaction or in a transaction in which the price is an instalment price the dealer has stipulated that the asset shall be forfeited or that the remaining sum shall become fully due for repayment if the consumer falls into arrears in the payment of one instalment – the stipulation is void, unless the transaction was of a type of transactions that the Minister prescribed by Order as being cancellable due to such arrears and the conditions for that set out in that Order have been fulfilled.
(b)In a transaction referred to in subsection (a) in which the dealer has not complied with a material condition thereof, even arrears of more than one instalment shall not be deemed a ground for forfeiture of the asset or for a demand for immediate repayment of the balance of the sum.
Prohibition on Making Payment by Debit Card Conditional on a Minimum Purchase Amount§
12a.
(a)A dealer who allows a consumer to pay by debit card shall not make payment by debit card conditional on a minimum purchase amount.
(b)The Minister, with the consent of the Minister of Justice and the Minister of Finance and with the approval of the Economics Committee of the Knesset, may prescribe that the provisions of this section shall also apply to a means of payment as the Minister may prescribe that is not a debit card.
(c)In this section, "means of payment" and "debit card" – as defined in section 11b of the Banking (Licensing) Law, 5741-1981.
Advance Payments and Guarantees§
13.
(a)The Minister may prescribe by Order transactions in which a dealer shall not be entitled to receive an advance payment from a consumer at a rate exceeding that prescribed in the Order, except on certain conditions prescribed in the Order, or if the dealer has given the consumer a guarantee as prescribed in the Order.
(b)If a consumer has paid an advance payment in a transaction and the asset was not supplied to them or the service was not provided to them, for reasons for which the seller or the service provider is responsible, within two weeks from the agreed date, or if no date was agreed – within two months from the date of payment, the dealer shall be liable to pay shekel interest from the agreed date until the actual date of supply or provision of the service, and the provisions of the Interest and Linkage Law shall apply to such interest, with the necessary modifications.
(c)If the dealer has not given a guarantee that they were required to give under subsection (a), the dealer shall pay, from the date of receipt of the advance payment until the date of supply, double the interest referred to in subsection (b) for the said delay.
Fixed-Term Transaction§
13a.
(a)In this section –
"date of termination of the transaction or the obligation" – one of the following dates, as the case may be:
(1)the date of termination of the transaction under paragraph (1) of the definition "fixed-term transaction";
(2)the date of termination of the period during which goods or services are purchased at a reduced price or during which another benefit is given therefor under paragraph (2) of that definition;
(3)the date of termination of the effect in linked transactions under paragraph (3) of that definition;
"transaction" – as defined in section 1, excluding a transaction in real property or an undertaking to carry out a transaction, within the meaning of sections 6 and 7 of the Land Law, 5729-1969;
"fixed-term transaction" – any of the following:
(1)a transaction for a specified period for the purchase of goods or services;
(2)a transaction in which, during a specified period, goods or services are purchased at a reduced price or another benefit is given therefor, whether the transaction itself is for an unspecified period or for a specified period, excluding a transaction in the course of which, for a limited period and without any condition, the dealer reduced the price of the goods or services or offered another benefit;
(3)a transaction linked to another transaction, such that the price for the purchase of goods or services in one transaction is affected, for a specified period, by the price paid in the other transaction or affects it;
"the notice period" – the period commencing between sixty days before the date of termination of the transaction or the obligation and thirty days before that date.
(b)In a fixed-term transaction in which a dealer charges a consumer's account in payments pursuant to a debit authorisation, the dealer shall notify the consumer, during the notice period, of the date of termination of the transaction or the obligation; the said date shall also be stated in each of the following:
(1)in the contract, if there is a written contract, or in a document pursuant to the provisions of section 14c(b);
(2)in every invoice, receipt or payment notice sent to the consumer during the period commencing three months before the date of termination of the transaction or the obligation, provided that if one of these is sent to the consumer more than once a month, this provision shall apply only once a month; the said date shall be stated with special prominence and in clear and legible letters;
(3)in a text message to the mobile telephone number provided by the consumer to the dealer, if provided – 21 days before the date of termination of the transaction or the obligation, and if the date for giving the notice under this paragraph falls on a Sabbath or a holiday – on the day following the Sabbath or the holiday; however, with respect to a dealer listed in item 2 of the Second Schedule, if the mobile telephone number provided by the consumer to the dealer is blocked to the text message reception service, the dealer shall notify the consumer of the date of termination of the transaction or the obligation on the said date by telephone call or voice message.
(c)
(1)A term in a contract providing that the engagement between the parties shall continue after the date of termination of the transaction or the obligation shall have no force, and it shall be deemed as if the contract was stipulated to be void on that date;
(2)If a dealer offered a consumer, during the notice period, to extend the engagement between them and the consumer notified the dealer that they agree to the extension, the validity of the contract between the parties shall be extended as agreed; if a dealer offered a consumer, after the notice period, to extend the engagement between them and the consumer notified the dealer that they agree to the extension, the validity of the contract between the parties shall be extended as agreed, however, during the first thirty days of the extension period the dealer shall not be entitled to raise the prices of the transaction or to alter its conditions to the detriment of the consumer, and the consumer shall be entitled to notify of the cancellation of their agreement.
(d)The provisions of subsection (c)(1) shall not apply to –
(1)goods or services or types of goods or services listed in the Third Schedule, provided that the dealer has notified the consumer in writing, during the notice period, of the date of termination of the transaction or the obligation; the dealer shall detail the conditions of the transaction in the notice and shall expressly state therein that the engagement between them will continue after the date of termination of the transaction or the obligation unless the consumer notifies that they wish to terminate it, and that the consumer has the right to terminate the engagement at any time; the Minister, with the approval of the Economics Committee of the Knesset, may amend the Third Schedule, and may also prescribe additional provisions or conditions that shall apply to goods or services listed in that Schedule;
(2)a transaction referred to in paragraphs (2) or (3) of the definition "fixed-term transaction", provided that all of the following have been fulfilled:
(a)the amounts of the payments that will apply after the date of termination of the transaction or the obligation were clearly and in detail specified in a written document delivered to the consumer at the time of the engagement between the dealer and the consumer, and it may be stated in such a document that the amounts specified will be linked to an index as defined in section 31(b)(3); however, if the payments that will apply after the date of termination of the transaction or the obligation are fixed by the Government or by a Minister, the dealer shall state in the notice the price of the transaction at the time of giving the notice, as well as that the price will be fixed as aforesaid;
(b)a notice was given to the consumer during the notice period in accordance with the provisions of subsection (b), provided that the notice was given in writing and the conditions of the transaction were detailed therein; however, there shall be no obligation to give such notice if the date of termination of the transaction or the obligation falls no later than four months from the date of entry into the transaction, and the consumer shall be entitled to notify of the termination of the engagement between them and the dealer, after the date of termination of the transaction or the obligation, without being charged any payment by reason of the termination of the engagement.
(e)For the purposes of this section, the burden of proof that the consumer agreed to extend the engagement between them and the dealer lies with the dealer.
Cancellation of a Fixed-Term Transaction§
13a1.
(a)A consumer may at any time cancel a fixed-term transaction of a type listed in the Fourth Schedule, in the manner and under the conditions set out therein, and the provisions set out alongside it in that Schedule shall apply to the cancellation of such a transaction; for the purposes of this section, "fixed-term transaction" – including a transaction for the purchase of an asset.
(b)The Minister, with the approval of the Economics Committee of the Knesset, may amend, by Order, the Fourth Schedule.
(c)The provisions of this section are in addition to the provisions of sections 14, 14a, 14c, 14c1 and 14f and do not derogate therefrom.
Sending Invoices and Payment Notices to a Consumer§
13b.
(a)Without derogating from the provisions of any law, in a continuing transaction in which a dealer charges a consumer's account in payments pursuant to a debit authorisation, the dealer shall send to the consumer, to the consumer's address registered with the dealer, or by a computerised means to which the consumer has given their express advance consent (in this section – address), at least once every six months, a breakdown of the payments made in the preceding six months, or a copy of the invoices relating to payments made by the consumer during the said period, which include a breakdown of the payments as aforesaid, if they were not previously sent to the consumer's address.
(b)Subsection (a) shall not apply to a transaction in which the payment is fixed, uniform and not dependent on the volume of consumption or use, unless the consumer has requested to receive at their address the breakdown of payments referred to in that subsection.
(b1)
(1)In addition to the provisions of subsection (a), in a continuing transaction the dealer shall send to the consumer, to their address, in the month of March each year, a notice containing an annual charges breakdown; the annual charges breakdown shall include a breakdown of the amounts charged to the consumer from 1 January to 31 December of the preceding year, including charges in respect of transactions ancillary to the continuing transaction, the total amount of those charges and the balance of debts that the consumer has not paid up to the date of sending the notice in respect of those charges;
(2)With respect to the debts that the dealer was required to include in the annual charges breakdown under paragraph (1), the burden of proof that the consumer has a further debt over and above the amounts included in the annual charges breakdown lies with the dealer;
(3)The first annual charges breakdown shall be sent to the consumer at their address registered with the dealer; a subsequent annual charges breakdown may be sent by a computerised means to which the consumer has given their express consent, as referred to in subsection (a).
(b2)Subsection (b1) shall not apply to a continuing transaction for the sale of goods in which the payment is fixed, uniform and not dependent on the volume of consumption or use, unless the consumer has requested to receive at their address the annual charges breakdown.
(b3)In a continuing transaction, including in a transaction for the supply of gas between a gas consumer and a gas supplier, in which the dealer charges a fixed payment, the dealer shall detail in the invoice or payment notice sent to the consumer the components of the fixed payment and their amounts; if the dealer has not detailed the components of the fixed payment and their amounts, the dealer shall not be entitled to charge the fixed payment; in this subsection, "fixed payment" – a payment separate from the payment according to the volume of consumption or use that the consumer makes of the goods or services provided to the consumer by the dealer, or a payment ancillary to the payment according to such volume, by whatever name they are called.
(c)The Minister, with the approval of the Economics Committee of the Knesset, may prescribe provisions regarding the ways of giving or sending invoices, payment notices, receipts or an annual charges breakdown to a consumer, as well as that the provisions regarding an annual charges breakdown shall not apply to types of dealers as the Minister may prescribe.
Dates of Payment by Direct Debit Authorisation§
13b1.
(a)Notwithstanding the provisions of any law, in a transaction in which a dealer charges a consumer's account in payments pursuant to a direct debit authorisation, the dealer shall offer the consumer a choice of the monthly charge date on which the payment charge will be made, from among four dates, provided that there shall be at least six days between one date and the next; the dealer may offer the consumer additional charge dates.
(b)If a consumer has not chosen a charge date, the dealer shall charge the consumer's account on the 10th of the month.
(c)A dealer shall not be entitled to charge an addition to the payment amount, including interest, linkage differentials or a fine, due to a deferral of payment resulting from the implementation of the provisions of this section.
Sending a Debt Notice to a Consumer§
13b2.
(a)A dealer who claims that a consumer did not pay a charge by the date set for payment shall send the consumer a debt notice as referred to in subsection (d) within four months of that date (in this section – debt notice).
(b)A dealer shall not take any action the purpose of which is the collection of a debt from the consumer, including sending a warning prior to the taking of legal proceedings but excluding the sending of a notice containing an annual breakdown of charges as referred to in section 13b(b1), before fourteen days have elapsed from the date of sending of the debt notice.
(c)A dealer shall not charge a consumer for collection expenses unless the dealer has sent the consumer a debt notice and the fourteen days referred to in subsection (b) have not yet elapsed; in this section, "collection expenses" – including payment in respect of the sending of a debt notice and excluding the charging of the consumer with linkage differentials and interest pursuant to law or pursuant to an agreement, or any other addition the amount or rate of which was set by legislation.
(d)
(1)The dealer shall send the consumer the debt notice in writing and in a separate document, to the consumer's registered address held by the dealer, and if no such address exists – to the consumer's registered address in the Population Register;
(2)Notwithstanding the provisions of paragraph (1), a dealer may send a consumer a debt notice by text message or by electronic means, provided that the consumer has given prior explicit consent to receive mail from the dealer by electronic means, or to receive text messages in respect of a debt notice, as the case may be;
(3)A debt notice shall be sent to the consumer directly by the dealer and not through another person;
(4)The burden of proof that the dealer sent the debt notice to the consumer lies with the dealer;
(5)A debt notice shall include the following particulars in a clear manner:
(a)the dealer's name, including the dealer's trade name;
(b)the particulars of the transaction, including the date on which it was made, its validity and its nature;
(c)a breakdown of the debt and the manner of its calculation;
(d)the means of contact with the dealer for the purpose of clarifying the debt.
(e)If a consumer requested, in writing or orally, to receive documentation confirming the existence of the transaction in respect of which a debt notice was sent to the consumer, the dealer shall send the consumer such documentation within fourteen days of the date of the request.
(f)If a dealer claimed collection expenses from a consumer in a suit filed against the consumer in a court or in the Execution Office, or in collection proceedings taken against the consumer, and the court or the Execution Office Registrar finds that the dealer did not send the consumer a debt notice, the court or the Execution Office Registrar may, on its own initiative or at the request of the consumer, reduce the collection expenses from the debt, in whole or in part.
Disclosure Obligations in a Continuous Transaction§
13c.
(a)In this Law –
"continuous transaction" – a transaction for the purchase of goods or services on a continuous basis, including any change in or addition to the transaction that does not constitute a new transaction, all whether the transaction is for a fixed period or for an indefinite period, and excluding a transaction for the supply of gas between a gas consumer and a gas supplier;
"gas", "gas supplier" and "gas consumer" – as defined in section 14 of the State Economy Arrangements (Legislative Amendments) Law, 5749-1989.
(b)A dealer about to enter into a continuous transaction with a consumer is required to disclose to the consumer, orally, prior to entering into the transaction, the following particulars:
(1)the consumer's right to cancel a continuous transaction, including the consumer's said right with respect to a transaction for an indefinite period;
(2)in a transaction for a fixed period – the duration of the transaction and its termination date;
(3)a breakdown of payments that the consumer must pay upon cancellation, if any, pursuant to the terms of the continuous transaction, and the manner of calculating such payments, if determined;
(4)(Repealed)
(c)If the continuous transaction was made under a written contract, the dealer shall include the particulars referred to in subsection (b) also in the contract signed with the consumer; if the continuous transaction was made orally, the dealer shall provide the consumer, not later than the date of supply of the goods or services, with a written document containing the said particulars; the particulars shall appear in the contract or in the written document adjacent to one another, in special emphasis and in clear and legible letters.
(d)The provisions of subsections (b) and (c) are in addition to the provisions of sections 4b and 14c, and do not derogate from them; however, if the continuous transaction is a remote sale transaction as referred to in section 14c, the dealer may include the particulars referred to in subsection (b) in a document pursuant to the provisions of section 14c(b).
(e)(Repealed)
Cancellation of a Continuous Transaction§
13d.
(a)(Repealed)
(b)(Repealed)
(c)A contract in a continuous transaction shall terminate within three business days from the date on which a cancellation notice was delivered pursuant to the provisions of section 14i, and if the cancellation notice was delivered by registered mail – within six business days from the date of its delivery for dispatch, all unless the consumer specified a later date in the cancellation notice (in this paragraph – the cancellation date); on the cancellation date the dealer shall cease the supply of the goods or services, and shall not charge the consumer for payments in respect of goods or services provided after the cancellation date.
(d)If the consumer delivered a cancellation notice pursuant to the provisions of section 14i and the dealer continued to charge the consumer for payments in respect of the continuous transaction due to circumstances of which the dealer was not aware and was not required to be aware, or which the dealer did not and was not required to foresee, and cancellation of the continuous transaction was impossible due to such circumstances, the provisions of subsection (c) and section 31a(a)(2b) shall not apply for as long as those circumstances persisted.
Refund in Respect of Charging an Excess Amount in a Continuous Transaction§
13d1.
(a)In a continuous transaction in which the dealer charges the consumer's account with payments pursuant to a debit authorisation –
(1)if a consumer claims that the dealer collected from the consumer an amount in addition to the amount the dealer is entitled to collect in accordance with the terms of the engagement (in this section – excess amount), the dealer shall examine the consumer's claims within ten business days;
(2)if the dealer finds that the dealer collected an excess amount from the consumer, the dealer shall return it to the consumer within four business days, with the addition of shekel interest from the date of collection and with the addition of a payment in respect of the consumer's expenses in the amount of NIS 16 (in this section – the refund amount), and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications; if the refund amount is less than fifty new shekels, the dealer may credit the consumer with the refund amount on the next charge date, provided that the payment notice in respect of that charge is sent to the consumer within thirty days of the end of the period referred to in paragraph (1).
(b)A dealer shall send the consumer a reasoned written response on the findings of the examination, as referred to in subsection (a), within twenty-one business days from the date of the consumer's application.
(c)The amounts referred to in subsection (a) shall be updated on 1 January of each year, commencing on the 19th of Tevet 5773 (1 January 2013), in accordance with the rate of change between the index published in December of the year preceding the update date and the index published in December of the year preceding that; in this section, "index" – the Consumer Price Index published by the Central Bureau of Statistics.
(d)The Minister, with the approval of the Economics Committee of the Knesset, may prescribe types of goods and services in respect of which a dealer shall be entitled to examine the consumer's claim or to return the excess amount to the consumer within a period longer than that referred to in this section, as the Minister shall prescribe.
Continuous Transaction Concerning Medical Services§
13e.
(a)In this Law –
"medical institution" – as defined in section 24(a) of the Public Health Ordinance, 1940;
"residential home" – as defined in the Supervision of Homes Law, 5725-1965;
"health fund" – as defined in the National Health Insurance Law, 5754-1994;
"medical services" – medical treatment as defined in the Patient Rights Law, 5756-1996, including medical support services and, in particular, ambulance transport, medical consultation or a doctor's visit, the operation of call centres for response by means of a distress button, or the supply of a medical device or other medical equipment, but excluding such treatment provided by a health fund or by a residential home, whether by themselves or through another on their behalf, and such treatment provided in a medical institution.
(b)A dealer shall not enter into a continuous transaction concerning medical services unless all of the following conditions are fulfilled:
(1)a written contract was signed between the dealer and the consumer in Hebrew or in the language in which the dealer provided the consumer with information about the transaction (in this section and in section 13f – the contract);
(2)the dealer provided the consumer, up to the date of signing the contract, with a form, in the language referred to in paragraph (1), signed by the dealer, containing all the particulars set out in subsection (c) (in this section – the disclosure form); the disclosure form shall be provided separately from the contract, and the consumer shall confirm receipt thereof by the consumer's signature; Regulations made under section 4a shall apply, with the necessary modifications, to the disclosure form.
(c)A dealer shall specify accurately, in the disclosure form, all the following information, and that information only:
(1)the dealer's particulars: the dealer's name, identity number, address and telephone number, as well as the dealer's fax number and electronic mail address, if they exist; if the dealer is a corporation – the dealer shall also specify the type of corporation;
(2)a breakdown of the services, devices and equipment included in the transaction, including conditions and limitations, if any, with respect to the operation of the devices and equipment, as well as the areas in which the services will be provided or to which the devices or equipment will be supplied pursuant to the transaction, and the days and hours on which they will be provided or supplied;
(3)particulars regarding the total price of the transaction, and the amounts to be paid during the transaction period if the total price is not paid in full at the time the transaction is made, as well as the manner of payment and its terms;
(4)with respect to a transaction for a fixed period – the duration of the transaction and its termination date, as well as the conditions for its extension after the said termination date as referred to in subsection (f);
(5)particulars regarding the consumer's right to cancel the transaction in accordance with the provisions of section 13f(a)(1), as well as a breakdown of payments that the consumer must pay upon cancellation of the transaction prior to its termination date, if cancellation payments were prescribed in the contract in accordance with the provisions of section 13f(a)(2);
(6)particulars regarding the warranty for the service, devices and equipment included in the transaction, and the warranty terms.
(d)The provisions of section 13c shall apply to a continuous transaction concerning medical services, with the necessary modifications and with the following modifications:
(1)subsections (b) to (d) shall not apply; however, with respect to disclosure obligations, the provisions of this section are in addition to the provisions of sections 4b and 14c(a) and (b) and do not derogate from them;
(2)(Repealed)
(e)In a continuous transaction concerning medical services that is a transaction for a fixed period, a dealer shall not enter into a contract with a consumer for a period exceeding one year.
(f)Notwithstanding the provisions of section 13a(c)(1), a dealer may extend the validity of a continuous transaction concerning medical services that is a transaction for a fixed period, after its termination date, for a period not exceeding half a year at a time, even if the dealer did not obtain the consumer's consent thereto during the notice period as defined in section 13a(a), provided that all of the following conditions are met:
(1)during the extension period, the terms of the transaction, including its price, shall not be changed;
(2)the dealer notified the consumer, in writing, during the notice period, of the termination date of the transaction, detailed the terms of the transaction in the notice and expressly stated that the engagement will continue after the termination date of the transaction unless the consumer gives notice that the consumer wishes to terminate it, and that the consumer has the right to terminate the engagement at any time.
(g)No effect shall be given to a term in a contract for a continuous transaction concerning medical services that prescribes, expressly or by implication, that after the consumer relocates to a residential home, is hospitalised for an extended period in a medical institution, or dies, the charges imposed on the consumer pursuant to the contract shall continue to apply to the consumer or shall apply to another person, and the contract shall be deemed to provide that such a term is void at that same time.
Cancellation of a Continuous Transaction Concerning Medical Services§
13f.
(a)In a continuous transaction concerning medical services, the consumer is entitled to cancel the transaction, provided –
(1)that if the consumer cancelled the transaction within thirty days from the date of signing of the contract by both parties or from the date on which the consumer confirmed receipt of the disclosure form in accordance with the provisions of section 13e(b)(2), whichever is later – the dealer shall not collect from the consumer any cancellation fee whatsoever, even if the provision of the service has commenced;
(2)that if the transaction is for a fixed period and the consumer cancelled it before its termination date and after the expiry of the thirty days referred to in paragraph (1) – the dealer shall not collect from the consumer any cancellation fee whatsoever, unless cancellation fees in respect of cancellation of the transaction before its termination date were prescribed in advance in the contract and in the amount prescribed in the contract; the Minister may prescribe provisions regarding the maximum amount of cancellation fees that may be prescribed in the contract.
(b)Nothing in the provisions of this section shall derogate from the provisions of sections 13d and 14i.
Consequences of Cancellation of a Continuous Transaction Concerning Medical Services§
13g.
Upon cancellation of a continuous transaction concerning medical services –
(1)the dealer shall refund to the consumer, on the cancellation date as defined in section 13d(c), that portion of the transaction price paid in respect of the period after the giving of the cancellation notice, or shall cancel the consumer's charge in respect of such period, and shall also provide the consumer with a copy of the charge cancellation notice; if a transaction in respect of which provision of the service has commenced is cancelled, the consumer shall pay the proportionate consideration for the service provided to the consumer, and if the consumer received devices or equipment within the framework of the transaction, the consumer shall make them available to the dealer at the place where they were delivered to the consumer and shall notify the dealer accordingly;
(2)if the dealer installed devices or equipment in the consumer's home for the purpose of providing a service pursuant to the transaction, the dealer shall be entitled to collect from the consumer payment in respect of the installation expenses, in an amount not exceeding NIS 100.
A Tariff Fixed by Law – Prohibition on Collecting a Commission and Modes of Payment§
13h.
(a)In this section –
"postal bank" – the company as defined in the Postal Law, 5746-1986, in its provision of the financial services as defined in that Law on behalf of the subsidiary as defined in section 88k of that Law;
"credit card" – (Repealed)
"commission" – a payment in respect of an action performed for the purpose of calculating or determining a charge, or in respect of the manner of payment of the charge, excluding a payment pursuant to law in respect of late payment of the charge.
(b)
(1)A dealer that supplies goods or services for which a tariff for payment by a consumer has been set pursuant to law (in this section – regulated services or goods) shall not be entitled to collect a commission from a consumer with respect to those goods or services;
(2)The provision of paragraph (1) shall also apply to services or goods that are not regulated services or goods, if payment in respect thereof is made pursuant to an invoice or payment notice from a dealer that supplies regulated services or goods, and the invoice or payment notice also includes charges for regulated services or goods.
(c)A dealer as referred to in subsection (b) shall enable a consumer to pay for regulated services or goods, in a continuous transaction, also in the following ways:
(1)debit authorisation;
(2)(Repealed)
(3)payment, including in cash or by cheque, at the postal bank or at other bodies that have undertaken by agreement with the dealer not to collect a commission with respect to regulated services or goods, provided that the payment option at those bodies cumulatively constitutes nationwide coverage, as approved by the Minister.
(d)The Minister's approval as referred to in subsection (c)(3) shall be given to a dealer having regard to the nationwide coverage of the postal bank.
(e)If provisions regarding cash payment were set pursuant to another law or in a licence granted to the dealer, the Minister responsible for regulating the sector in which the dealer operates, or another body that has been vested by law with powers with respect to regulating the sector in which the dealer operates, may direct that the provisions of subsection (c)(3) shall not apply to a certain category of consumers.
Peddling Transaction§
14.
(a)In a peddling transaction, the consumer is entitled to cancel the agreement –
(1)in a sale – from the date of making the agreement until fourteen days from the date of delivery of the asset or from the date of receipt of the particulars prescribed in Regulations made under subsection (d), whichever is the later;
(2)in a service, within fourteen days from the date of making the agreement or from the date of receipt of the particulars prescribed in Regulations made under subsection (d), whichever is the later, as detailed hereunder: in a continuous transaction – whether or not the provision of the service has commenced, and in a transaction that is not a continuous transaction – if the provision of the service has not yet commenced.
(b)Upon cancellation of an agreement pursuant to subsection (a) or section 14c1(b) –
(1)the dealer shall refund to the consumer the consideration paid by the consumer; with respect to cancellation pursuant to subsection (a)(1) – the consumer shall return 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, and with respect to cancellation of a continuous transaction pursuant to subsection (a)(2), if the provision of the service has commenced – the consumer shall pay the proportionate consideration for the service provided to the consumer, and shall also return to the dealer goods received for the purpose of the provision of the service, if goods were received as aforesaid;
(2)if the dealer installed goods in the consumer's home for the purpose of providing a service pursuant to the agreement, the dealer shall be entitled to collect from the consumer payment in respect of the installation expenses, in an amount not exceeding NIS 100; the Minister, with the approval of the Economics Committee of the Knesset, may prescribe types of transactions in respect of which a dealer shall be entitled to collect other amounts in respect of installation expenses and the amounts to be collected.
(b1)Nothing in the provisions of subsection (b) shall derogate from the right of the dealer to claim damages for the fact that the value of the asset that is the subject of the transaction decreased as a result of a material deterioration in its condition.
(c)The provisions of subsection (a) or section 14c1(b) shall not apply to a transaction in perishable goods.
(d)The Minister may prescribe in Regulations, with the approval of the Economics Committee of the Knesset, particulars that a dealer is required to provide to a consumer.
(e)The Minister may by Order, with the approval of the Economics Committee of the Knesset, prescribe that the provisions of this section shall also apply to other transactions not made at a permanent place of business.
Transaction Concerning the Purchase of Timeshare Units§
14a.
(a)A dealer shall not enter into a transaction concerning the purchase of a timeshare unit unless all of the following conditions have been met:
(1)a written contract has been signed between the dealer and the consumer (in this Section – the contract);
(2)the dealer has delivered to the consumer, no later than the date of signing the contract, a form signed by the dealer containing all the particulars set out in subsection (b) (hereafter – disclosure form); the disclosure form shall be delivered separately from the contract, and the consumer shall acknowledge receipt thereof by signature; Regulations made under section 4a shall apply, with the necessary modifications, to the disclosure form.
(b)The dealer shall set out accurately in the disclosure form all of the following information, and that information only:
(1)particulars of the dealer: the dealer's full name, identity number and full address in Israel and abroad; where the dealer is a corporation – also the type of corporation, its number and the place of its registration;
(2)where the dealer is not the owner of the rights in the timeshare site – the particulars of the owner of the rights as enumerated in paragraph (1), the definition of the dealer's status in relation to the timeshare site and the legal relationship between the dealer and the owner of the rights in the site;
(3)a detailed description of the timeshare site and its location, as well as of the timeshare unit being sold;
(4)the nature of the right being sold in the transaction and the period of its validity;
(5)where construction of the timeshare site has not yet been completed – the stage of construction at which the site stands, the estimated date of completion of construction and the date by which the dealer undertakes that the rights in the timeshare site may first be exercised;
(6)where the dealer has undertaken to provide the consumer with securities to secure the consumer's payments or rights under the contract – particulars of the securities;
(7)details of the services included in the rights in the timeshare unit;
(8)details of the common areas in the timeshare site in which the consumer will have a right of use, and the conditions of use thereof;
(9)the price of the timeshare unit, including every additional payment that the consumer will be required to make in order to acquire the rights in the transaction;
(10)the amounts that the consumer will be required to pay as the consumer's share in the management and maintenance of the timeshare unit and the timeshare site, including the method of calculating such amounts and the dates of payment thereof;
(11)the consumer's right to use similar rights in other timeshare sites, if such rights exist, the payments required therefor, the manner of their determination and the dates of payment thereof;
(12)restrictions on the consumer's right to use, transfer or trade in the consumer's rights under the contract, if any;
(13)particulars concerning the consumer's right to cancel the transaction, in accordance with the provisions of subsection (c);
(14)particulars concerning the jurisdiction of a court in Israel or outside Israel, in accordance with the provisions of subsection (d).
(c)In a transaction concerning the purchase of a timeshare unit, the consumer may cancel the contract within fourteen days from the date of signing of the contract by both parties, or from the date on which the consumer acknowledged receipt of the disclosure form in accordance with the provisions of subsection (a), whichever is the later; cancellation shall be effected by giving written notice to the dealer.
(d)The competent court in Israel shall have jurisdiction to hear any claim connected with a transaction under this Section; however, in respect of a timeshare unit situated outside Israel, the consumer may bring a claim before a court in the country in which that unit is situated.
(e)In this Section –
"timeshare site" – a building or project, whether in Israel or abroad, in which a timeshare arrangement is, or is intended to be, operated;
"timeshare unit" – a right, whether proprietary or otherwise, conferring upon its owner an alternating right of use of a room or other dwelling place, in Israel or abroad, for a period of at least three years, for a period of two days or more in the course of each year.
Payment by Means of a Payment Instruction§
14b.
(a)Where a consumer has undertaken to pay the consideration for a transaction as referred to in section 14a by means of a payment instruction through the payee, the payment instrument issuer shall not debit the payer with the debit amount, in whole or in part, before at least 30 days have elapsed from the date on which a document evidencing the payment transaction carried out pursuant to that payment instruction was deposited with the issuer; where the payer has notified the issuer, within the said 30 days, that the transaction has been cancelled in accordance with the provisions of section 14a(c), the issuer shall not debit the payer with any amount in respect of that transaction.
(b)In this Section –
"payment instrument", "payment instruction", "issuance", "payee", "payer" and "payment services to the payer" – as defined in the Payment Services Law;
"issuer", of a payment instrument – the payment service provider to the payer who issued the payment instrument;
"document evidencing a payment transaction" – a document as referred to in paragraphs (1) or (2) of the definition "payment transaction by incomplete instrument" in section 29(a) of the Payment Services Law.
Remote Sale Transaction§
14c.
(a)In distance marketing, the dealer is required to disclose to the consumer at least the following particulars:
(1)the name, identity number and address of the dealer in Israel and abroad;
(2)the principal characteristics of the asset or the service;
(3)the price of the asset or the service and the possible terms of payment;
(4)the date and manner of supply of the asset or the service;
(5)the period during which the offer will be valid;
(6)particulars concerning the warranty for the asset;
(7)particulars concerning the consumer's right to cancel the contract in accordance with the provisions of subsection (c) or section 14c1(c).
(b)In a remote sale transaction, the dealer shall provide the consumer, in writing, in Hebrew or in the language in which the approach to distance marketing was made, no later than the date of supply of the asset or the service, with a document containing the following particulars:
(1)the particulars referred to in subsection (a)(1) and (2);
(2)the price of the asset or the service and the terms of payment applicable to the transaction;
(3)the manner in which the consumer may exercise the consumer's right to cancel the transaction in accordance with the provisions of subsection (c) or section 14c1(c);
(4)the name of the manufacturer and the country of manufacture of the asset;
(5)information concerning the warranty for the asset or the service;
(6)additional conditions applicable to the transaction.
(c)In a remote sale transaction, the consumer may cancel the transaction –
(1)in respect of an asset – from the date of making the transaction until fourteen days from the date of receipt of the asset or from the date of receipt of the document containing the particulars referred to in subsection (b), whichever is the later;
(2)in respect of a service – within fourteen days from the date of making the transaction or from the date of receipt of the document containing the particulars referred to in subsection (b), whichever is the later, as detailed below: in a continuous transaction – whether or not the provision of the service has commenced, and in a transaction that is not a continuous transaction – provided that such cancellation is made at least two days, not being rest days, before the date on which the service is due to be provided.
(d)The provisions of subsection (c) and section 14c1(c) shall not apply to a remote sale transaction in respect of –
(1)perishable goods;
(2)accommodation, travel, leisure or entertainment services, where the date of cancellation of the transaction falls within seven days, not being rest days, before the date on which the service is due to be provided;
(3)information as defined in the Computers Law, 5755-1995;
(4)goods manufactured especially for the consumer pursuant to the transaction;
(5)goods capable of being recorded, reproduced or copied, where the consumer has opened their original packaging.
(e)The Minister, with the approval of the Economics Committee of the Knesset, may prescribe remote sale transactions, not enumerated in subsection (d), to which the provisions of this Section, in whole or in part, shall not apply.
(f)In this Section –
"price of the asset" – the total price of the asset or the service, including delivery charges and any other addition or expense to be borne by the consumer;
"remote sale transaction" – entering into a transaction for the sale of an asset or the provision of a service, where the transaction is entered into following distance marketing, without the parties to the transaction being present together;
"distance marketing" – an approach by a dealer to a consumer by means of mail, telephone, radio, television, electronic communication of any kind, facsimile, catalogue or advertisement publication, or by similar means, with the aim of entering into a transaction without the parties being present together, but by one of the said means.
Cancellation of a Peddling Transaction and a Remote Sale Transaction by a Consumer who is a Person with a Disability, a Senior Citizen or a New Immigrant§
14c1.
(a)In this Section –
"person with a disability" – as defined in the Equal Rights for Persons with Disabilities Law, 5758-1998;
"senior citizen" – a person who has attained the age of 65 years;
"new immigrant" – a person who has not yet completed five years from the date on which an immigrant certificate or a certificate of entitlement as an immigrant was issued to the person by the Ministry of Aliyah and Integration;
"remote sale transaction" – as defined in section 14c(f);
"certificate of entitlement as an immigrant" – a certificate issued by the Ministry of Aliyah and Integration to a person who has been found entitled to assistance as an immigrant in accordance with the Ministry's procedures.
(b)In a peddling transaction entered into with a consumer who is a person with a disability, a senior citizen or a new immigrant, the consumer may cancel the transaction within four months from the date of making the agreement, from the date of delivery of the asset or from the date of receipt of the particulars prescribed in Regulations under section 14(d), as the case may be, whichever is the later.
(c)In a remote sale transaction entered into with a consumer who is a person with a disability, a senior citizen or a new immigrant, the consumer may cancel the transaction within four months from the date of making the transaction, from the date of receipt of the asset or from the date of receipt of the document containing the particulars referred to in section 14c(b), as the case may be, whichever is the later, provided that the entering into the transaction included a conversation between the dealer and the consumer, including a conversation by means of electronic communication.
(d)Where a consumer who is a person with a disability, a senior citizen or a new immigrant has requested to cancel a peddling transaction under subsection (b) or a remote sale transaction under subsection (c), the dealer may require the consumer to present before the dealer a certificate proving that the consumer is a person with a disability, a senior citizen or a new immigrant, provided that the dealer shall not require any further proof for the purpose of exercising the right of cancellation as aforesaid; the consumer shall present before the dealer one of the following documents, as the case may be, or shall send a copy thereof to the dealer, including by means of electronic communication or facsimile:
(1)a certificate issued to the consumer by the State attesting that the consumer is a senior citizen;
(2)an immigrant certificate or a certificate of entitlement as an immigrant;
(3)a certificate attesting that the consumer is a person with a disability for a period exceeding six months, issued by a body authorised by law to determine the existence of such a disability;
(4)a certificate enumerated in the Fifth Schedule; the Minister, in consultation with the Minister concerned, may, by Order, amend the Fifth Schedule.
(e)The provisions of this Section are in addition to the provisions of sections 14 and 14c and do not derogate from them.
Cancellation of a Remote Sale Transaction for the Provision of Tourism Services outside Israel§
14c2.
(a)Notwithstanding the provisions of sections 14c(c) and 14e, a dealer offering a consumer to enter into a remote sale transaction for the provision of tourism services provided entirely outside Israel through a service provider outside Israel may offer the consumer, in respect of that offered service, to choose between the following alternatives, subject to the provisions of subsections (b) and (c):
(1)a right of cancellation under the provisions of sections 14c(c) and 14e (in this Section – right of cancellation);
(2)the cancellation policy of the service provider outside Israel (in this Section – cancellation policy).
(b)A dealer shall not offer a consumer a transaction that includes a cancellation policy unless the dealer has provided the consumer, at the time of distance marketing and prior to entering into the transaction, with information concerning the cancellation policy in transactions of the type offered, including whether it includes a right to cancel the transaction; where the cancellation policy includes such a right, the information shall also include the dates of cancellation and, if applicable, the cancellation fees and the possibility of receiving a refund; the dealer shall also provide the consumer with such particulars in a document under section 14c(b).
(c)Where a dealer has published on the dealer's website transactions in respect of which there is a right of cancellation and a cancellation policy, the dealer shall also publish information concerning the cancellation policy, including the particulars referred to in subsection (b).
(d)Where a consumer has chosen the cancellation policy alternative and it includes a right to cancel the transaction and to receive a refund, including cancellation fees, the dealer shall return to the consumer the amounts due to the consumer within the periods prescribed in section 14e.
(e)The burden of proof in respect of the cancellation policy, including its disclosure to the consumer as referred to in this Section, lies with the dealer.
(f)For the purposes of this Section, in a remote sale transaction for the purchase of a flight ticket from Israel or to Israel that includes a stopover outside Israel, the leg of the flight from one intermediate destination to another intermediate destination or to the final destination shall not be regarded as a service provided entirely outside Israel.
(g)In this Section –
"tourism services" – accommodation, travel, leisure or entertainment services;
"outside Israel" – excluding the area as defined in the Value Added Tax Law, 5736-1975.
14d.§
(Repealed — תשע״ז־4)
Consequences of Cancellation of a Transaction§
14e.
(a)Where a consumer has cancelled a contract under sections 14a(c), 14c(c) or 14c1(c) due to a defect in the asset that is the subject of the contract or the transaction, due to a discrepancy between the asset or the service and the particulars provided to the consumer under sections 14a(a) and (b) or 14c(a) and (b), due to non-supply of the asset or the service by the date fixed therefor in the contract, or due to any other breach of the contract by the dealer –
(1)the dealer shall return to the consumer, within 14 days from the date of receipt of the notice of cancellation, that part of the transaction price paid by the consumer, shall cancel the consumer's charge in respect of the transaction and shall deliver to the consumer a copy of the notice of cancellation of the charge as aforesaid, and shall not collect any cancellation fees from the consumer;
(2)where the consumer has received the asset that is the subject of the transaction or the contract, the consumer shall make it available to the dealer at the place at which the asset was delivered to the consumer and shall notify the dealer accordingly, and the same shall apply to any asset received by the consumer as a result of entering into the transaction or the contract.
(b)Where a consumer has cancelled a contract under sections 14a(c), 14c(c) or 14c1(c) for reasons other than those enumerated in subsection (a) –
(1)the dealer shall return to the consumer, within 14 days from the date of receipt of the notice of cancellation, that part of the transaction price paid by the consumer, shall cancel the consumer's charge in respect of the transaction and shall deliver to the consumer a copy of the notice of cancellation of the charge as aforesaid, and shall not collect from the consumer any amount other than cancellation fees at a rate not exceeding 5% of the price of the asset that is the subject of the contract or the transaction, or 100 New Shekels, whichever is the lower;
(2)where the consumer has received the asset that is the subject of the transaction or the contract, the consumer shall return it to the dealer at the dealer's place of business, and the same shall apply to any asset received by the consumer as a result of entering into the transaction or the contract.
(b1)Without derogating from the provisions of subsections (a) and (b), where a continuous transaction as referred to in section 14c(c) or 14c1(c) has been cancelled and the provision of the service thereunder has commenced, the consumer shall pay the proportionate consideration for the service provided to the consumer.
(b2)Where the dealer has installed goods at the consumer's home for the purpose of providing a service under the transaction, the dealer may collect from the consumer a payment in respect of the installation expenses, in an amount not exceeding NIS 100; the Minister, with the approval of the Economics Committee of the Knesset, may prescribe types of transactions in respect of which the dealer may collect other amounts in respect of installation expenses and the amounts to be collected.
(c)Nothing in the provisions of subsections (a) and (b) shall derogate from the right of the dealer to claim damages in respect of a significant deterioration in the condition of the asset resulting in a reduction in its value.
(d)In this Section, "cancellation fees" – including expenses or liabilities in respect of delivery, packaging or any other expense or liability that the dealer claims to have been incurred or undertaken by the dealer in connection with entering into the transaction or the contract, or in connection with its cancellation.
Monetary Refund or Credit in respect of Return of Goods§
14f.
(a)In a transaction for the purchase of goods, types of goods, services or types of services prescribed by the Minister, a consumer may cancel the purchase agreement within a period prescribed by the Minister, provided that where the transaction is for the purchase of goods and the consumer has received the goods purchased –
(1)the consumer returns them to the dealer;
(2)the goods have not been damaged and have not been used.
(b)The Minister shall prescribe provisions for the purpose of implementing the provisions of subsection (a), including in respect of the return of the consideration paid by the consumer for the goods or the services, including the manner and type of monetary refund, as well as the circumstances in which –
(1)the right to cancel the transaction shall apply, shall not apply or shall be limited;
(2)the dealer shall be entitled to deduct cancellation fees from the monetary refund amount, at a rate to be prescribed.
(c)Regulations under this Section shall be made with the approval of the Economics Committee of the Knesset.
Credit in respect of Cancellation of a Transaction§
14g.
(a)Where a consumer has cancelled an agreement for the purchase of goods or services and was not entitled to a monetary refund under the provisions of any law, and the dealer gave the consumer a credit voucher in respect of the cancellation (in this Section – credit voucher), the following provisions shall apply:
(1)the credit voucher shall be printed or written in a manner that prevents erasure of the writing therein; the Minister may prescribe provisions in this regard;
(2)the amount stated in the credit voucher shall be the amount paid at the time of making the transaction;
(3)the credit voucher shall be valid for at least two years from the date of its delivery;
(4)the redemption of the credit voucher shall not be conditional upon presentation of the invoice given to the consumer at the time of making the transaction;
(5)no condition limiting the possibility of redeeming the credit voucher shall be valid, including in respect of its redemption in a special sale; the Minister, with the approval of the Economics Committee of the Knesset, may prescribe exceptions to this provision.
(b)The period of validity of the credit voucher and the indication of the possibility of using it without restrictive conditions, or subject to the exceptions prescribed by the Minister under subsection (a)(5), shall appear on the voucher, in clear letters and with special emphasis, in accordance with the provisions under section 4a, in respect of a condition contained in other information intended for the consumer.
(c)Where a consumer has redeemed a credit voucher in the purchase of goods or services whose price is lower than the amount stated in the voucher, and the difference did not exceed 5% of the amount stated in the voucher or NIS 100, whichever is the lower, the consumer shall be entitled to receive the surplus in cash.
(d)The provisions of this Section shall also apply to a gift voucher.
Purchase Tokens§
14h.
(a)In this Section, "purchase token" – a card or document purchased for money or money's worth, enabling the holder thereof to purchase goods or services from a dealer, in the amount stated therein, excluding a card or document intended for use solely in respect of a specific type of product or service.
(b)An issuer of a purchase token who wishes to limit the validity of the purchase token that the issuer issues shall indicate on the purchase token, in clear letters and in a prominent manner, in addition to the issuer's name, also the date of issuance and the date of expiry, provided that the period of validity of the token shall not be less than five years from the date of issuance; however, where a bankruptcy order or a winding-up order has been made against an issuer of a purchase token, the holder of the token shall not be able to use it to purchase goods or services from the date of the making of the order.
(c)The amount stated in the purchase token shall be uniform in respect of all the dealers listed therein.
(d)A dealer who has given a consumer a credit voucher as change in respect of the redemption of a purchase token shall permit the use of the credit voucher at each of the dealer's branches, however the dealer may limit the use of the credit voucher at a branch bearing a different trade name.
(e)Notwithstanding the provisions of section 14g(a)(5), a dealer who has given a consumer a credit voucher against the return of a product purchased with a purchase token may limit the possibility of redeeming the credit voucher subject to the same restrictive conditions appearing on the purchase token, provided that they appear on the voucher.
(f)The Minister, with the approval of the Economics Committee of the Knesset, may prescribe provisions in respect of purchase tokens, including in respect of conditions limiting the possibility of their redemption, inter alia in types of sales or in respect of holders of standing discounts with dealers or at certain businesses.
Means of Cancelling a Transaction and Duty of Disclosure§
14i.
(a)Where a consumer has a right to cancel a transaction under this Law or under a contract, the dealer shall enable the consumer to cancel the transaction by means of a cancellation notice that the consumer delivers to the dealer in any one of the ways listed below and in accordance with the contact details that the dealer provided to the consumer under subsection (d) pertaining to that means of cancellation (in this Section – cancellation notice):
(1)orally – by telephone or by an oral notice at the place of business, except where it has been prescribed under the Law that cancellation of the transaction shall be effected by way of written notice;
(2)by registered mail;
(3)by electronic mail;
(4)by facsimile, if the dealer has one;
(5)via the Internet – in a transaction that may be entered into with a consumer by that means;
(6)by any other means prescribed by the Minister.
(b)In respect of a transaction that may be entered into with a consumer via the Internet, the dealer shall create on the main page of the dealer's website a dedicated link by means of which a cancellation notice may be sent in accordance with the provisions of subsection (a)(5), which shall be positioned in a prominent and clear manner.
(c)In a cancellation notice the consumer shall set out the consumer's name and identity number, and if the cancellation notice was delivered orally as referred to in subsection (a)(1) – an additional identifying detail if one was agreed upon with the consumer at the time of entering into the contract; the Minister, with the approval of the Economy Committee of the Knesset, may prescribe provisions regarding additional details that a consumer must provide in the cancellation notice.
(d)A dealer shall disclose to the consumer, in writing, the means of delivering a cancellation notice as referred to in subsection (a), the contact details pertaining to each means of cancellation as referred to in that subsection, and the details to be included in a cancellation notice as referred to in subsection (c), all no later than the time of supply of the goods or services; for this purpose, "in writing" – including in a contract, in a disclosure form or in a document setting out the principal terms of the transaction.
(e)A dealer shall provide the consumer with the information referred to in subsection (d) also in each of the following:
(1)in an invoice, receipt or payment notice, and in respect of a transaction for a fixed period that does not require the explicit consent of the consumer for the continuation of the engagement – also in a notice of the date of termination of the transaction – sent to the consumer;
(2)if the dealer has a website – on the main page of the website, and if a transaction may be entered into via the Internet as referred to in subsection (b) – adjacent to the dedicated link referred to in that subsection.
(f)The items of information to be disclosed to the consumer under subsections (d) and (e) shall appear in close proximity to one another, in special bold type and in clear and legible characters.
(g)The provisions of this Section shall not apply to the cancellation of a transaction under section 14f; the Minister, with the approval of the Economy Committee of the Knesset, may prescribe additional types of transactions and also types of dealers in respect of whom the provisions of this Section, in whole or in part, shall not apply.
Special Sale§
15.
(a)A dealer who has publicly announced, or announced at the place of business, a special sale shall clarify which goods or services are included therein and which goods or services are not included therein, their price with the dealer before the sale and the rate of the discount or the price after the discount, as well as the terms of the special sale.
(b)Where a dealer announced a special sale and wishes to change the particulars referred to in subsection (a), the dealer shall publish a notice to that effect in the same manner in which the first notice was published.
(b1)A dealer who has publicly announced, other than at the place of business, a special sale of goods or services shall include in the publication the minimum number of items offered in that special sale and the minimum number of items offered therein at the maximum discount; the provisions of this Section shall not apply to goods or services whose consumer price in the special sale does not exceed NIS 50; the Minister, with the approval of the Economy Committee of the Knesset, may raise or reduce the said amount in respect of types of goods or services that the Minister has prescribed, and may also prescribe that provisions regarding the publication of a minimum number of items offered in a special sale shall not apply to types of goods or types of services that the Minister has prescribed.
(b2)A dealer who has publicly announced, or announced at the place of business, a special sale of goods shall hold, having regard to the nature and scope of the announcement, a reasonable stock of the goods included in the special sale, unless the dealer has stated otherwise in the announcement.
(b3)If the stock of goods offered in a special sale has been exhausted, or the services, in whole or in part, are no longer offered in a special sale, the dealer shall not continue to publish publicly or at the place of business the announcement published regarding that sale; however, if part of the items in the stock as aforesaid has been exhausted, the dealer may continue to publish the announcement only at the place of business, provided that the dealer publishes at the place of business a notice regarding the items that have been exhausted.
(c)Nothing in the provisions of this Section shall derogate from the provisions of any law regarding the display of prices of goods or services.
Special Price§
16.
A dealer who has announced a sale at a discount, or a special price, of defective goods, or of goods whose quality is below the usual standard or whose expiry date under law, custom or the manufacturer's recommendation is approaching, shall include in the announcement the reason for the discount or the special price.
Modification or Termination of a Consumer Benefits Programme§
16a.
(a)In this Section –
"modification" – a reduction in the benefits or rights afforded to a consumer under a benefits programme, in their value, in the possibility of redeeming them or in the period during which they may be redeemed;
"the programme", "benefits programme" – a continuing engagement between a consumer and a dealer, in which the consumer provides the consumer's details for the purpose of joining a programme of the type of a loyalty club operated by the dealer, the essence of which is the receipt of benefits or the accumulation of rights, from the dealer or from another dealer, whether joining the programme involves payment or does not involve payment;
"terms of the programme" – the terms of the benefits programme determined at the time of the engagement between the dealer operating the programme and the consumer or at a later time.
(b)Where a dealer operating a benefits programme for an indefinite period wishes to make a modification to the programme or to terminate it –
(1)the dealer shall send the consumer a notice of the particulars of the modification or of the date of termination of the programme between three and four months before the date of entry into force of the modification or the date of termination of the programme, as the case may be;
(2)the dealer shall enable the consumer to redeem the benefits in accordance with the terms of the programme from the date of dispatch of the notice referred to in paragraph (1) and at least until the date of entry into force of the modification or the date of termination of the programme, as the case may be.
(c)Notwithstanding the provisions of subsection (b), where the dealer wishes to make a modification to a programme as referred to in that subsection that includes the accumulation of rights, or to terminate such a programme –
(1)the dealer shall send the consumer a notice of the particulars of the modification or of the date of termination of the programme between eight and nine months before the date of entry into force of the modification or the date of termination of the programme, as the case may be; in such a notice the dealer shall also state the consumer's right to redeem the rights accumulated in accordance with the provisions of paragraph (2);
(2)the dealer shall enable the consumer to redeem the rights accumulated in accordance with the terms of the programme from the date of dispatch of the notice referred to in paragraph (1) and at least until the date of entry into force of the modification or the date of termination of the programme, as the case may be.
(d)A dealer operating a benefits programme for a fixed period shall not make a modification to the programme and shall not terminate the programme before the end of the fixed period; such a dealer shall send the consumer a notice between three and four months before the end of the fixed period, regarding the end of the period and the consumer's right to redeem the benefits or the rights under the benefits programme until the end of the period.
(e)Notices as referred to in subsections (b)(1), (c)(1) and (d) shall be sent to the consumer in one of the ways listed below that the consumer has chosen for receiving notices from the dealer, in accordance with the contact details provided by the consumer to the dealer at the time of the engagement or at a later time:
(1)post;
(2)electronic mail;
(3)text message;
(4)another online means of communication.
(f)The Minister, with the approval of the Economy Committee of the Knesset, may prescribe –
(1)circumstances in which the obligation to provide notices in accordance with the provisions of this Section, in whole or in part, shall not apply or shall apply with such modifications as the Minister may prescribe;
(2)types of benefits programmes or of dealers in respect of whom the provisions of this Section, in whole or in part, shall not apply or shall apply with such modifications as the Minister may prescribe.
(g)The provisions of this Section shall not apply to the following:
(1)a modification to a benefits programme that includes benefits or rights offered by a dealer who is not the dealer operating the programme (in this subsection – another dealer), or the termination of such a programme, by reason of one of the following:
(a)a winding-up order, an interim winding-up order, a receiving order, a receivership order or a stay of proceedings order under any law has been made against the other dealer, and if the other dealer is an individual – a receivership order or a bankruptcy order under any law has been made against that other dealer;
(b)the other dealer has ceased to exist or the other dealer's place of business has been closed;
(2)a special sale as defined in section 8, that is not a benefit afforded pursuant to a benefits programme.
Establishment and Management of a Registry for Restriction of Marketing Communications§
16b.
(a)In this Section and in section 16c –
"the Registry" – the registry established pursuant to the provisions of subsection (b);
"marketing communication" – a communication by a dealer to a consumer by means of a call to the consumer's telephone number for the purpose of entering into a transaction, whether during the course of the communication or at a later time, including an offer to receive an asset or service without consideration, at a discount or with a benefit;
"call" – including a call by electronic communication.
(b)The Authority shall establish and manage a registry in which only telephone numbers of consumers who wish to restrict marketing communications directed to them by dealers or by persons acting on their behalf as referred to in section 16c shall be registered.
(c)A consumer may request that one or more telephone numbers be registered in the Registry, and may request at any time to change the number or to remove it from the Registry; the Authority shall take reasonable measures to prevent the registration, change or removal of a telephone number in the Registry without the consumer's knowledge.
(d)The Registry shall be subject to the provisions applicable to databases under the Privacy Protection Law, 5741-1981.
(e)The Minister, with the approval of the Economy Committee of the Knesset, shall prescribe provisions regarding the establishment and management of the Registry, and may in particular prescribe provisions on the following matters:
(1)a consumer's request to register a telephone number in the Registry, to change it or to remove it;
(2)the manner in which information registered in the Registry may be accessed by a dealer and a consumer.
(f)The Minister, with the consent of the Minister of Finance and with the approval of the Economy Committee of the Knesset, may prescribe a fee for the processing of a dealer's request to obtain information from the Registry, including the amount of the fee, the manner and time of its payment, its linkage and the means of its collection.
Prohibition on Marketing Communications to a Telephone Number Registered in the Registry§
16c.
(a)A dealer or a person acting on the dealer's behalf shall not direct a marketing communication to a consumer whose telephone number is registered in the Registry, including for the purpose of persuading the consumer to remove the consumer's telephone number from the Registry.
(b)Where a telephone number is registered in the Registry, there shall be a presumption that the consumer has refused to receive a marketing communication to that telephone number.
(c)Where a dealer wishes to direct a marketing communication to a consumer, the dealer shall verify that the telephone number to which the dealer wishes to direct the communication is not registered in the Registry.
(d)Where a dealer has directed a marketing communication on behalf of another dealer to a telephone number registered in the Registry, the communication shall be deemed to have been made also by the dealer on whose behalf it was made.
(e)The provisions of this Section shall not apply to cases, circumstances and types of transactions listed in the Sixth Schedule; the Minister, with the approval of the Economy Committee of the Knesset, may amend the Sixth Schedule.
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