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: The Consumer Protection and Fair Trade Authority and the Commissioner, His Functions and Powers
The Commissioner§
19.
The Government shall appoint, on the recommendation of the Minister, a Commissioner for Consumer Protection and Fair Trade; notice of the appointment shall be published in Reshumot (Official Gazette).
The Consumer Protection and Fair Trade Authority§
19a.
(a)The Consumer Protection and Fair Trade Authority is hereby established.
(b)The Commissioner shall be the Director of the Authority.
The Authority's Budget§
19b.
The budget of the Authority shall be determined in the annual budget law, under a separate budget section, as those terms are defined in the Budget Foundations Law, 5745-1985; the person responsible for that budget section for the purposes of that Law shall be the Commissioner.
Transactions of the Authority§
19c.
For the purpose of implementing the provisions of this Law, the Commissioner is authorised, together with the Authority's comptroller, to represent the Government in transactions as referred to in sections 4 and 5 of the State Assets Law, 5711-1951, except for transactions in real property, and to sign on behalf of the State documents relating to such transactions.
Employees of the Authority§
19d.
(a)The employees of the Authority shall be State employees and the provisions of the State Service (Appointments) Law, 5719-1959 shall apply to them.
(b)The employees of the Authority shall act in accordance with the instructions of the Commissioner and under the Commissioner's supervision.
Functions of the Commissioner§
20.
(a)The functions of the Commissioner shall be —
(1)to supervise the implementation of the provisions of this Law;
(1a)to investigate a suspicion of the commission of an offence under this Law and to bring the offender to justice;
(1b)to take administrative enforcement proceedings against a violator pursuant to the provisions of this Law;
(2)to handle complaints that the Commissioner finds to have substance concerning a breach of the provisions of this Law or other harm to a consumer;
(3)to conduct and initiate surveys and research on consumer affairs;
(3a)to handle ties between a dealer and a consumer that impair the consumer's ability to switch from one dealer to another;
(4)to handle any other matter connected to consumer protection that has not been assigned by law to another authority.
(b)Where a complaint has reached the Commissioner in a matter in which, under a legislative provision, another authority has power of supervision and to take measures following the examination of a complaint, the Commissioner shall consult that authority before handling the complaint, and may also transfer the complaint to it; where the Commissioner has transferred the complaint as aforesaid, that authority shall notify the Commissioner of the outcome of the handling.
Authorisation of Inspectors§
20a.
(a)The Commissioner may authorise, from among the employees of the Authority, or — with the consent of the Minister — from among the employees of the Ministry of Economy, inspectors who shall be vested with the powers under this Law, in whole or in part; notice of the authorisation of an inspector under this section shall be published in Reshumot (Official Gazette).
(b)A person shall not be authorised as an inspector under the provisions of subsection (a) unless all of the following conditions are met:
(1)the Israel Police has notified, within three months of receipt of the employee's particulars, that it does not object to the authorisation on grounds of public safety, including on account of the person's criminal record;
(2)the person has received appropriate training in the area of the powers that will be vested in the person under this Law, as directed by the Commissioner with the consent of the Minister for Internal Security;
(3)the person meets the eligibility requirements and has received appropriate training in the field of consumer protection, as directed by the Commissioner.
(c)The authorisation of an inspector under this section shall be by a certificate signed by the Commissioner, attesting to the person's position as an inspector and to the person's powers under this Law (hereinafter — inspector's certificate); the validity of an inspector's certificate shall not exceed three years from the date of its issuance, and shall remain in force for as long as the inspector serves in the position.
Authorisation of Inspectors to Penetrate Computer Material and Produce Output§
20a1.
The Commissioner may authorise, from among the inspectors authorised under section 20a, inspectors who shall be vested with the power to penetrate computer material and produce output in the course of such penetration for the purpose of executing an order as referred to in section 22(a1), however inspectors as aforesaid shall not be authorised unless they have undergone the additional training required for the exercise of such powers as aforesaid, as directed by the Commissioner with the consent of the Minister for National Security.
Identification of an Inspector§
20b.
An inspector shall not make use of the powers vested in the inspector under this Law, except while performing the inspector's duties, after having identified themselves, and where both of the following conditions are met:
(1)the inspector is visibly wearing a badge identifying the inspector and the inspector's position;
(2)the inspector holds an inspector's certificate, which the inspector shall present upon request.
Powers of Supervision§
21.
For the purpose of supervising the implementation of the provisions under this Law, the Commissioner or an inspector may —
(1)require any person to provide the Commissioner or inspector with that person's name and address and to present an identity card or other official document identifying that person;
(2)require any person concerned to provide the Commissioner or inspector with any information or document that may ensure or facilitate the implementation of the provisions under this Law; for this purpose, "document" — including output as defined in the Computers Law, 5755-1995 (in this Law — the Computers Law);
(3)carry out examinations or measurements or take samples for examination, and also to direct that samples be submitted for laboratory examination or be preserved for a period as directed, or to deal with them in another manner;
(4)enter business premises at any reasonable time, provided that the Commissioner or inspector shall not enter premises used for residential purposes except pursuant to a court order; the obligation of identification and wearing of a badge under section 20b shall not apply in relation to this power.
21a.§
(Repealed — תשע״ד־4)
Administrative Order to Retain Goods at the Place of Business§
21b.
(a)Where the Commissioner or an inspector has established that a dealer has not labelled goods in accordance with the provisions of section 17, the Commissioner or inspector may order that no use whatsoever be made of the said goods and that they be retained at the place of business, in a manner and for a period to be determined, not exceeding six months; notwithstanding the foregoing, the Commissioner or inspector may permit the dealer to remove the goods from the place of business in order to label them as aforesaid at another location; in this section, "place of business" — including a warehouse of the dealer, at the dealer's choice.
(b)Where the dealer has notified the Commissioner or inspector that the goods have been labelled, the Commissioner or inspector shall verify, shortly after the dealer's notification, and no later than seven business days from the date of the notification, whether the goods have been labelled in accordance with the provisions of section 17, and if the Commissioner or inspector has established that the goods have been so labelled — shall cancel the order.
Administrative Order to Cease Infringement§
21c.
(a)Where the Commissioner has established that a dealer is infringing any of the following provisions, the Commissioner may order the dealer to cease the infringement, to perform an action required to prevent that infringement or to remedy it so as to comply with the provision of the Law that was infringed, and to notify the Commissioner of the cessation of the infringement, the performance of the action to prevent the infringement or the remedy of the infringement, as the case may be, in the manner, under the conditions and at the times to be set out in the order:
(1)the provisions of section 3(a) or section 3a;
(2)provisions under this Law, in a manner liable to harm the discretion of a consumer who is a person with special characteristics in carrying out a transaction, or where the infringement concerns a large number of consumers or is liable to cause significant harm to a consumer; in this subsection, "person with special characteristics" — including a person with a disability, a senior citizen or a new immigrant, a minor, a helpless person or a person who does not know the language in which the transaction was entered into to a sufficient degree so as to understand the transaction; for this purpose —
"person with a disability", "senior citizen" and "new immigrant" — as defined in section 14c1(a);
"helpless person" — as defined in section 368a of the Penal Law, 5737-1977.
(b)
(1)The Commissioner shall not issue an administrative order as referred to in subsection (a) except after giving the dealer an opportunity to present arguments in writing, or orally at the dealer's request and with the Commissioner's approval, within seven business days, and in relation to an administrative order as aforesaid issued on account of a breach of the provisions of section 3a — within three business days;
(2)Notwithstanding the provisions of paragraph (1), where the Commissioner has established that there is a real possibility that giving the dealer an opportunity to present arguments as referred to in that paragraph may frustrate the purpose of issuing the order and there is an immediate need to issue it, the Commissioner may order as referred to in subsection (a) before the dealer has been given an opportunity to present arguments, and this shall not affect the validity of the order; however, the dealer may present arguments before the Commissioner, in writing or orally, as directed by the Commissioner, as soon as possible after the issuance of the order and no later than seven business days from the date of its issuance.
(c)The Commissioner may delegate the Commissioner's powers under this section to the Commissioner's deputy or to the Authority employee responsible for the subject of financial penalties, and notice thereof shall be published in Reshumot (Official Gazette).
Application to a Court for Cancellation of an Administrative Order§
21d.
(a)A person who considers themselves aggrieved by an order issued under sections 21b or 21c (in this section — the order) may submit an application to the Magistrate's Court for its cancellation.
(b)The submission of an application for cancellation of the order under the provisions of subsection (a) does not stay the effect of the order, so long as the court has not decided otherwise; where the court has decided to stay the effect of the order ex parte, the application shall be heard inter partes as soon as possible.
(c)The court may cancel the order, confirm it or modify it.
Powers of the Commissioner, Inspector and Court upon Suspicion of the Commission of an Offence§
22.
(a)Where the Commissioner or an inspector suspects that a dealer has committed an offence against the provisions of this Law, he may –
(1)investigate any person connected to the offence or who may have knowledge relevant to the commission of the offence; the provisions of sections 2 and 3 of the Criminal Procedure Ordinance (Testimony) shall apply to an investigation under this paragraph, with the necessary modifications;
(2)apply to the court for a search order under section 23 of the Arrest and Search Ordinance and execute it; the provisions of sections 24(a)(1), 26 to 28 and 45 of the Arrest and Search Ordinance shall apply to a search under this paragraph, with the necessary modifications;
(3)seize any object in respect of which he has reasonable grounds to believe that it is an object connected to the offence; the provisions of Chapter IV of the Arrest and Search Ordinance shall apply to a seizure under this paragraph, with the necessary modifications.
(a1)Where the Commissioner or an inspector has a reasonable suspicion that a dealer has committed an offence as referred to in section 23a, he may apply to the court for an order to access computer material as defined in the Computers Law, 5755-1995, and also for the production of output in the course of such access, and the provisions of section 23a of the Arrest and Search Ordinance shall apply in this regard with the following modification: instead of "an official skilled in performing the said operations" read "an inspector authorised under section 20a1".
(b)In this section, "object" – including a document and also a computer and computer material as defined in the Computers Law, 5755-1995.
The Advisory Committee§
22a.
(a)The Minister, with the consent of the Minister of Finance, shall appoint an advisory committee whose function shall be to advise the Commissioner, at his request, on any matter relating to consumer protection and fair trade, and also to advise him in the preparation of the annual report referred to in section 22b and in the preparation of the Authority's work plan.
(b)The Advisory Committee shall consist of six members, as follows:
(1)an employee of the Ministry of Industry, Trade and Employment, of a rank not lower than that of Deputy Director General;
(2)an employee of the Ministry of Finance, of a rank not lower than that of Deputy Director General;
(3)two members of the academic staff of recognised institutions of higher education within the meaning of the Council for Higher Education Law, 5718-1958;
(4)a representative of a consumer organisation as defined in section 31(c), to be determined by the Minister;
(5)a representative of dealers, to be determined by the Minister.
(c)The Minister, with the consent of the Minister of Finance, shall appoint one of the members of the Advisory Committee to serve as chairperson of the Committee.
(d)Members of the Committee shall be appointed for a term of three years and may be reappointed, provided that they shall not serve for three consecutive terms.
Annual Report§
22b.
The Commissioner, in consultation with the Advisory Committee, shall prepare an annual report on the activities of the Authority in that year, and shall submit it to the Government through the Minister.
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Contact Us →Chapter V-A: Administrative Enforcement
Section A: Financial Penalty
Financial Penalty§
22c.
(a)Where a dealer has breached a provision of the provisions under this Law, as set out below, the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter in the amount of NIS 25,950, and if the dealer is not a corporation – in the amount of NIS 8,260:
(1)notified or posted a sign stating that he bears no responsibility for any bodily harm that may be caused to a consumer within the business premises or on its grounds, contrary to the provisions of section 2(b1);
(2)notified that the consumer has no right to cancel a transaction or to receive his money back, and did not qualify his notification in accordance with the provisions of section 2(b2);
(3)did not disclose to the consumer a material particular that he was required to disclose, in accordance with the provisions under section 4(a)(3);
(4)did not comply with the provisions under section 4a(1) with regard to lettering in a standard contract or in a term included in other information intended for the consumer;
(5)did not comply with the provisions under section 4a(2) with regard to the prominence and manner of drafting of material terms in a standard contract, or with regard to the attachment of a separate document in respect thereof;
(6)did not disclose to the consumer his name and identity number in accordance with the provisions of section 4b;
(7)did not return to the consumer the consideration received from him, contrary to the provisions of section 4c(b) or (c);
(8)did not comply with the provisions under section 4d with regard to the allocation of a dedicated sales area for supervised food products;
(9)did not draw up a written contract with the consumer in accordance with the provisions under section 5(a), or did not give the consumer a reasonable opportunity to peruse the contract, or did not deliver a copy to him as referred to in section 5(b);
(10)set a credit price in a transaction with a consumer without having given the consumer advance notice in accordance with the provisions under section 9;
(10a)made payment by debit card, or by another means of payment if so prescribed, conditional upon a minimum purchase amount, contrary to the provisions under section 12a;
(11)did not notify the consumer, within the notice period, of the date of termination of the transaction or undertaking, in accordance with the provisions of section 13a(b);
(12)did not send the consumer a breakdown of payments or copies of invoices in accordance with the provisions under section 13b(a);
(13)did not send the consumer a notice containing an annual itemisation of charges in accordance with the provisions of section 13b(b1);
(13a)collected a fixed payment, as defined in section 13b(b3), in a continuous transaction and did not specify in the invoice or in the payment notice sent to the consumer the components of the fixed payment and their amounts, contrary to the provisions of that section;
(14)did not offer the consumer a choice of the monthly charge date on which the payment charge is to be effected, in accordance with the provisions of section 13b1;
(14a)did not send the consumer a debt notice or documentation confirming the existence of a transaction, in accordance with the provisions of section 13b2(a) or (e);
(14b)took action aimed at collecting a debt, or charged collection expenses, contrary to the provisions of section 13b2(b) or (c);
(15)did not disclose to the consumer particulars that he was required to disclose in accordance with the provisions of section 13c(b);
(16)did not include the particulars referred to in section 13c(b) in a document under the provisions of section 14c(b) or in a contract signed with a consumer, or did not deliver to the consumer a written document containing the said particulars, in accordance with the provisions of section 13c(c);
(17)(Repealed)
(18)entered into a continuous transaction in respect of medical services without the conditions under section 13e(b) having been fulfilled;
(19)charged a consumer a commission in respect of regulated services or goods, contrary to the provisions of section 13h(b);
(20)did not enable the consumer to pay for regulated services or goods in a continuous transaction by one of the means enumerated in section 13h(c);
(21)in a door-to-door transaction, did not deliver to the consumer particulars that he was required to deliver in accordance with the provisions under section 14(d);
(22)entered into a transaction in respect of the purchase of vacation units without the conditions under section 14a(a) having been fulfilled;
(23)charged a customer, contrary to the provisions of section 14b;
(24)did not disclose to the consumer particulars that he was required to disclose in accordance with the provisions of section 14c(a);
(25)did not supply the consumer with a written document in accordance with the provisions of section 14c(b);
(25a)in a distance sale transaction for the provision of tourism services as referred to in section 14c2 –
(a)offered the consumer alternatives as referred to in that section and did not disclose to him particulars that he was required to disclose in accordance with the provisions of section 14c2(b) and (c);
(b)did not act in accordance with the cancellation policy of the tourism service provider outside Israel as referred to in section 14c2, where the consumer chose the cancellation policy alternative as referred to in that section;
(26)did not return to the consumer the consideration paid by him in accordance with the provisions under section 14f;
(27)did not give the consumer a credit voucher or a gift voucher (in this section – a voucher) in respect of the cancellation of a transaction in accordance with the provisions of section 14g(a) or (d), or did not enable the consumer to redeem the voucher in accordance with those provisions;
(28)did not indicate on the voucher the particulars referred to in section 14g(b);
(29)did not give the consumer who redeemed a voucher the change in cash in accordance with the provisions of section 14g(c);
(30)issued a purchase token contrary to the provisions of section 14h(b) and (c);
(31)did not enable the use of a credit voucher given as change upon the redemption of a purchase token, in accordance with the provisions of section 14h(d);
(31a)did not enable the consumer to give him notice of cancellation of a transaction by each of the means enumerated in section 14i(a) and (b), in accordance with the provisions of that section;
(31b)did not disclose to the consumer information that he was required to disclose in accordance with the provisions of section 14i(d) and (e);
(32)announced publicly or at the place of business a special sale and did not clarify the particulars or conditions referred to in section 15(a), or did not maintain a reasonable stock of goods in accordance with the provisions of section 15(b2);
(33)announced publicly a special sale and did not include in the publication the particulars that he was required to include in it in accordance with the provisions under section 15(b1);
(34)continued to publish publicly or at the place of business a notice of a special sale that he had published, contrary to the provisions of section 15(b3);
(35)did not include in a notice of a sale at a discount or at a special price the reason for the discount or the special price, contrary to the provisions of section 16;
(35a)made a change to a benefits programme for an indefinite period or terminated such a benefits programme and did not send the consumer a notice in accordance with the provisions of section 16a(b)(1);
(35b)did not enable the consumer to redeem the benefits in accordance with the terms of a benefits programme for an indefinite period, contrary to the provisions of section 16a(b)(2);
(35c)made a change to a benefits programme for an indefinite period that includes the accumulation of rights, or terminated such a benefits programme, and did not send the consumer a notice in accordance with the provisions of section 16a(c)(1);
(35d)did not enable the consumer to redeem the rights accumulated by him in accordance with the terms of a benefits programme for an indefinite period, contrary to the provisions of section 16a(c)(2);
(35e)sent the consumer notices not in accordance with the provisions under section 16a(e) or (f)(1);
(36)did not mark on goods intended for the consumer or attached thereto, particulars in accordance with the provisions under section 17;
(37)did not display on goods or on their packaging their total price in accordance with the provisions of section 17b(a), (b) and (c);
(38)charged a consumer a price higher than the binding price of goods, contrary to the provisions of section 17b(d);
(39)did not display, in addition to or in lieu of the total price, the price per unit of measure, weight or volume, in accordance with the provisions under section 17b(e);
(40)did not display the total price required for the provision or performance of a service in accordance with the provisions under section 17c;
(41)published or quoted a price for an asset or service not in accordance with the provisions of section 17d;
(42)did not include in the displayed price the rate of increase or reduction of a tax, fee or compulsory payment in accordance with the provisions of section 17e;
(43)set a price in Israeli currency for an asset or service as detailed in Part 2 of the First Schedule, whose price was displayed, published or quoted in foreign currency, otherwise than in accordance with the exchange rate set out in the First Schedule, contrary to the provisions of section 17g(b);
(43a)did not place a weighing device at his place of business, contrary to the provisions under section 17h;
(44)sold or held for the purpose of sale goods in respect of which an obligation arising under Chapter IV had not been fulfilled, contrary to the provisions of section 18;
(45)did not give the consumer a service or a warranty certificate, or did not affix or did not deliver a warranty sticker, in accordance with the provisions under section 18a;
(46)did not provide a free telephone service in accordance with the provisions under section 18b(a)(1) or (b);
(47)did not disclose to the consumer particulars that he is required to disclose in accordance with the provisions of section 18b(a)(2).
(47a)did not provide a professional human response to a consumer in accordance with the provisions under section 18b(a1) or (b);
(48)approached the consumer by telephone not in accordance with the provisions of section 18c(b).
(b)Where a dealer has breached a provision of the provisions under this Law, as set out below, the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter in the amount of NIS 53,070, and if he is not a corporation – in the amount of NIS 29,490:
(1)did an act capable of misleading a consumer in a material matter in a transaction, contrary to the provisions of section 2(a) or (c);
(2)sold, imported or held an asset containing a misrepresentation, or used such an asset for the provision of a service, contrary to the provisions of section 2(b);
(3)exercised unfair influence as referred to in section 3(b), except for paragraphs (5) to (7) thereof;
(4)did not disclose to the consumer particulars that he is required to disclose in accordance with the provisions of section 4(a)(1) or (2);
(5)published a misleading advertisement contrary to the provisions of section 7(c);
(6)published an advertisement or employed another marketing method not in accordance with the provisions under section 7a;
(7)one of the conditions set out in section 7b(b) applies to him and he presented or advertised himself, directly or indirectly, as one whose sole purpose is to protect or advise the consumer, or called or designated himself by a name implying that he acts for such a purpose, contrary to the provisions of section 7b(a);
(8)continued to charge a consumer payments, contrary to the provisions of section 13a(c);
(9)did not enable the consumer to cancel a fixed-term transaction of the type enumerated in the Fourth Schedule, in the manner and under the conditions set out therein, contrary to the provisions of section 13a1 or section 3 of the Consumer Protection Law (Amendment No. 37), 5774-2014;
(10)continued to charge a consumer payments for goods or services provided after the date of cancellation, contrary to the provisions of section 13d(c);
(11)did not return to the consumer a surplus amount charged in a continuous transaction in accordance with the provisions of section 13d1(a);
(12)contracted with a consumer for a period exceeding one year in a continuous transaction in respect of medical services that is a fixed-term transaction, contrary to the provisions of section 13e(e);
(13)collected cancellation fees from a consumer, contrary to the provisions of section 13f(a)(1) or (2);
(14)did not return to the consumer a portion of the transaction price or did not cancel the consumer's charge in accordance with the provisions of section 13g;
(15)did not return to the consumer the consideration paid by him in accordance with the provisions of section 14(b);
(16)did not return to the consumer the portion of the transaction price paid by him or did not cancel the consumer's charge in accordance with the provisions of section 14e;
(16a)made a change to a fixed-term benefits programme or terminated such a programme before the expiry of the fixed term, contrary to the provisions of section 16a(d);
(16b)made a marketing approach to a telephone number registered in the database, contrary to the provisions of section 16c;
(17)breached a condition among the additional conditions included in a written undertaking submitted to the Commissioner, which he is required to comply with in accordance with the provisions of section 22p(c).
(b1)Where a dealer has exercised unfair influence as referred to in section 3(b)(5) or (6), the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter in the amount of NIS 75,620, and if he is not a corporation – in the amount of NIS 42,030.
(c)
(1)Without derogating from the provisions of subsections (a) to (b1), where a dealer has breached an administrative order to cease an infringement as referred to in section 21c, the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter in an amount of three times the amount of the financial penalty for the infringement in respect of which the order was issued, and in respect of a breach of an administrative order as aforesaid issued in respect of a breach of section 3(a) – three times the amount of the financial penalty prescribed in section 22c(b);
(2)Where a financial penalty has been imposed in respect of a breach of an administrative order to cease an infringement as referred to in paragraph (1), the counting of the days of the continuing infringement of the infringement in respect of which the order was issued shall cease on the day on which the order was issued, and no financial penalty shall be imposed in respect of a continuing infringement of that infringement for the period thereafter.
(d)
(1)Notwithstanding the provisions of subsection (c), where a dealer has breached an administrative stop order to cease an infringement as referred to in section 21c, in respect of a breach of the provisions of section 3a, the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter at a rate of five per cent of his sales turnover in the financial year preceding the commission of the infringement, in respect of each type of goods or service in relation to which the infringement was committed, provided that the amount of the financial penalty shall not exceed NIS 10,586,720 for each type of goods or service;
(2)Where the Commissioner did not have information concerning the sales turnover of the person in breach, he may demand from the person in breach, by written notice, additional information and particulars required for that purpose, within a period that he set out in the notice;
(3)Where the dealer did not provide what is required under the provisions of paragraph (2) within the period set out in the notice, the Commissioner may determine the sales turnover of the dealer at his best discretion and impose upon him a financial penalty in accordance with the provisions of this Chapter in the amount detailed in respect of him in the Eighth Schedule, provided that the notice referred to shall specify the amounts of the financial penalty that the Commissioner may impose upon a dealer who has not provided information concerning the sales turnover.
Infringement in Aggravating Circumstances§
22d.
(a)Where the Commissioner has reasonable grounds to believe that a dealer has breached a provision of the provisions under this Law set out in section 22c, in aggravating circumstances, the Commissioner may impose upon him a financial penalty in accordance with the provisions of this Chapter at a rate of one and a half times the amount of the financial penalty that may be imposed in respect of that infringement under section 22c, provided that in respect of aggravating circumstances as referred to in paragraph (2) of the definition of "aggravating circumstances", the Commissioner shall not impose such a financial penalty except in accordance with the procedures he has directed.
(a1)Notwithstanding the provisions of subsection (a) –
(1)in respect of an infringement as referred to in section 22c(b1), the Commissioner shall not impose a financial penalty in aggravating circumstances as referred to in paragraph (2) of the definition of "aggravating circumstances";
(2)the rate of the financial penalty to be imposed on an infringement in respect of which aggravating circumstances as referred to in paragraphs (1) and (2) of the definition of "aggravating circumstances" apply shall not exceed one and a half times the amount of the financial penalty that may be imposed in respect of that infringement.
(b)In this section, "aggravating circumstances" – any of the following:
(1)an infringement relating to a particularly large number of consumers; for this purpose, it is presumed that an infringement committed by a dealer at more than one branch or point of sale operated by him is an infringement relating to a particularly large number of consumers;
(2)an infringement of a provision of the provisions under this Law enumerated in the Seventh Schedule, committed against a consumer who is one of the following:
(a)a veteran citizen or new immigrant as defined in section 14c1(a), or a minor;
(b)a person who is evidently in a state of intellectual, mental or physical weakness;
(c)a person who is evidently insufficiently proficient in the language in which the transaction is being concluded to enter into the transaction.
(c)The Minister, with the approval of the Economics Committee of the Knesset, may, by Order, amend the Seventh Schedule, provided that infringements added to that Schedule shall be from the infringements enumerated in section 22c(a) or (b).
Notice of Intention to Charge§
22e.
(a)Where the Commissioner has reasonable grounds to believe that a dealer has breached a provision of the provisions under this Law set out in section 22c (in this Chapter – the person in breach), and it is his intention to impose upon him a financial penalty under that section or under section 22d, he shall give the person in breach notice of the intention to impose a financial penalty upon him (in this Chapter – notice of intention to charge).
(b)In a notice of intention to charge, the Commissioner shall state, inter alia, the following:
(1)the act or omission (in this Chapter – the act) constituting the infringement;
(2)the amount of the financial penalty and the period for its payment, in accordance with the provisions of section 22k;
(3)the right of the person in breach to submit arguments before the Commissioner under the provisions of section 22f;
(4)the rate of the addition to the financial penalty in a continuing infringement or a repeated infringement under the provisions of section 22j.
(5)particulars of the aggravating circumstances in the commission of the infringement, if any.
Right to be Heard§
22f.
(a)A person in breach to whom a notice of intention to charge has been given under the provisions of section 22e may submit arguments before the Commissioner, in writing or orally, as the Commissioner shall direct, with regard to the intention to impose a financial penalty upon him, with regard to its amount, and with regard to the existence of aggravating circumstances, if aggravating circumstances were specified in the notice of intention to charge, within 45 days of the date of delivery of the notice.
(b)The Commissioner may, at the request of the person in breach, extend the period referred to in subsection (a) by a period not exceeding 45 days.
Decision of the Commissioner and Payment Demand§
22g.
(a)Where the infringer has presented arguments before the Commissioner pursuant to the provisions of section 22f, the Commissioner shall decide, after having weighed the arguments presented, whether to impose a financial penalty on the infringer, and may reduce the amount of the financial penalty pursuant to the provisions of section 22h.
(b)
(1)Where the Commissioner has decided pursuant to the provisions of subsection (a) to impose a financial penalty on the infringer, the Commissioner shall serve on the infringer a demand to pay the financial penalty (in this Chapter – payment demand); in the payment demand the Commissioner shall state, inter alia, the updated amount of the financial penalty as referred to in section 22i and the period for its payment as referred to in section 22k;
(2)Where the Commissioner has decided pursuant to the provisions of subsection (a) not to impose a financial penalty on the infringer, the Commissioner shall serve on the infringer notice thereof.
(c)In the payment demand or in the notice pursuant to subsection (b), the Commissioner shall set out the reasons for the decision.
(d)Where the infringer has not requested to present arguments pursuant to the provisions of section 22f(a), within 45 days from the day on which the notice of intention to charge was served on the infringer, or within a longer period prescribed pursuant to section 22f(b), if prescribed, that notice shall, upon the expiry of the said period, be deemed a payment demand served on the infringer on the said date.
Reduced Amounts§
22h.
(a)The Commissioner may not impose a financial penalty in an amount lower than the amounts prescribed in this Section, except pursuant to the provisions of subsection (b).
(b)The Minister, with the consent of the Minister of Justice and with the approval of the Economics Committee of the Knesset, may prescribe cases, circumstances and considerations by reason of which it shall be possible to reduce the amounts of the financial penalty prescribed in this Section, at rates that the Minister shall prescribe.
Updated Amount of the Financial Penalty§
22i.
(a)The financial penalty shall be according to its updated amount on the day of service of the payment demand, and in respect of an infringer who did not present arguments before the Commissioner as referred to in section 22f – on the day of service of the notice of intention to charge; where an appeal has been filed against a payment demand pursuant to section 22t(a) and the Commissioner has agreed or the court has ordered a stay of payment of the financial penalty pursuant to section 22t(b), the amount of the financial penalty shall be according to its updated amount on the day of the decision on the appeal.
(b)The amounts of the financial penalty as referred to in section 22c shall be updated on 1 January of each year (in this subsection – the update date), in accordance with the rate of change in the index known on the update date as compared with the index that was known on the update date in the preceding year; the said amount shall be rounded to the nearest amount that is a multiple of NIS 10; for this purpose, "index" – the Consumer Price Index published by the Central Bureau of Statistics.
(c)The Commissioner shall publish in Reshumot (Official Gazette) a notice of the updated amounts of the financial penalty pursuant to subsection (b).
Continuing Infringement and Repeated Infringement§
22j.
(a)In the case of a continuing infringement, one-fiftieth of the financial penalty prescribed for that infringement shall be added thereto for each day on which the infringement continues; for this purpose, "continuing infringement" – the infringement of a provision from among the provisions under this Law set out in section 22c, after a payment demand has been served on the infringer in respect of the infringement of that provision, or after an administrative warning within the meaning of section 22m has been served on the infringer in respect of the infringement of that provision and the warning has not been cancelled as referred to in section 22n.
(b)In the case of a repeated infringement, an amount equal to half of the financial penalty as referred to shall be added to the financial penalty that could have been imposed in respect thereof had it been a first infringement; for this purpose, "repeated infringement" – the infringement of a provision from among the provisions under this Law set out in section 22c, within two years of a previous infringement of that provision in respect of which a financial penalty was imposed on the infringer or in respect of which the infringer was convicted, provided that in respect of an infringement under section 22c(a)(37) or (38) – within nine months of a previous infringement of those provisions.
Time for Payment of the Financial Penalty§
22k.
The financial penalty shall be paid within 45 days from the day of service of the payment demand as referred to in section 22g.
Shekel Interest and Default Charges§
22l.
Where a financial penalty has not been paid on time, shekel interest and default charges shall be added thereto for the period of default until payment thereof, and the provisions of the Interest and Linkage Law shall apply, with the necessary modifications.
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