Israeli LegislationEnglish Edition

Translation Notice — This is an English translation of a Hebrew law and may contain inaccuracies. In any dispute or legal matter, the original Hebrew text as published in Reshumot (ספר החוקים) is the sole authoritative and legally binding version.

Law

Consumer Protection Law, 5741-1981

חוק הגנת הצרכן

Chapter VI1: Class Action

35a.

[Amendment: 5754, 5766-3]

[(Repealed).]

35b.

[Amendment: 5754, 5766-3]

[(Repealed).]

35c.

[Amendment: 5754, 5766-3]

[(Repealed).]

35d.

[Amendment: 5754, 5766-3]

[(Repealed).]

35e.

[Amendment: 5754, 5766-3]

[(Repealed).]

35f.

[Amendment: 5754, 5760, 5766-3]

[(Repealed).]

35g.

[Amendment: 5754, 5766-3]

[(Repealed).]

35h.

[Amendment: 5754, 5766-3]

[(Repealed).]

35i.

[Amendment: 5754, 5766-3]

[(Repealed).]

35j.

[Amendment: 5754, 5766-3]

[(Repealed).]

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Chapter VII: Miscellaneous Provisions

Binding Law

36.

The provisions of this Law shall apply notwithstanding any waiver or contrary agreement.

Implementation and Regulations

37.

[Amendment: 2006-4]

(a)The Minister is responsible for the implementation of this Law and may enact Regulations with respect to anything relating to its implementation.
(a1)Regulations and Orders under this Law shall be prescribed in consultation with the Supervisor or upon the Supervisor's proposal.
(b)Regulations under this Law that relate exclusively to goods or services within the area of activity of a ministry of the Government shall also be enacted in consultation with the Minister responsible for that ministry.

Supervisor's Power to Delegate

38.

The Supervisor may delegate powers vested in the Supervisor under this Law, except for powers under Sections 28 or 30, to another State employee.

Limitation on Application

39.

[Amendment: 2016-6, 2017, 2019-2, 2020, 2023]

The provisions of this Law shall not apply to a service provided by any of the following:

(1)a banking corporation within the meaning of the Banking (Customer Service) Law, 5741–1981;
(2)an insurer or insurance agent within the meaning of the Supervision of Insurance Business Law, 5741–1981;
(3)a provider of financial services as defined in the Supervision of Financial Services (Regulated Financial Services) Law, 5776–2016;
(4)a payment company as defined in the Regulation of the Engagement in Payment Services and Payment Initiation Law, 5783–2023.

Repeal

40.

The following are repealed —

(1)the Used Vehicle Trade Law, 5737–1977;
(2)[the text has been incorporated into the Supervision of Commodities and Services Law, 5718–1957;]
(3)[the text has been incorporated into the Merchandise Marks Ordinance.]

Preservation of Laws

41.

This Law is intended to add to any law and not to derogate from it.

Law Applicable to the State

42.

For the purposes of this Law, the State shall be subject to the same law as any other dealer.

Commencement

43.

This Law shall come into force on the 1st of Av, 5741 (1 August 1981).

Publication

44.

This Law shall be published within thirty days of the date of its adoption by the Knesset.

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First Schedule (Section 17g)

Part A

1.

[Amendment: Regulations 2005|anchor=Schedule 1 Part A Item 1]

Hotel services in Israel displayed at a hotel and provided to a tourist, provided that their price is displayed in accordance with Regulations prescribed by the Minister, with the approval of the Knesset's Economics Committee in consultation with the Minister of Tourism.

2.

[Amendment: Regulations 2005|anchor=Schedule 1 Part A Item 2]

A motor vehicle rental service provided to a tourist for self-driving in Israel, provided that its price is stated and published in accordance with Regulations prescribed by the Minister, in consultation with the Minister of Transport and with the approval of the Knesset's Economics Committee;

3.

[Amendment: Regulations 2005|anchor=Schedule 1 Part A Item 3]

For the purposes of Items 1 and 2, "tourist" — as defined in Section 1 of the Value Added Tax Law, 5736–1975.

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Part B

1.

[Amendment: 2004 | Anchor: First Schedule Part 2 Item 1]

Payments, fees, levies, or taxes prescribed under another enactment, payable to the Airports Authority or to the Ports Authority, in respect of the entry of passengers into Israel or their departure therefrom, or in respect of the transportation and carriage of goods to Israel or their removal therefrom, provided that their price in New Shekels shall be determined in accordance with the exchange rate referred to in that other enactment.

2.

Goods in a duty-free store for sale to persons departing Israel, as defined in Regulation 12 of the Customs Regulations, 5726–1965, provided that their price in New Shekels shall be determined according to the representative rate most recently published prior to the date on which the transaction with the consumer is made.

3.

[Amendment: 2004, 2019-3 | Anchor: First Schedule Part 2 Item 3]

A service of carrying passengers or transporting cargo by air, land, or sea, from or to Israel, including via land border crossings, as well as the chartering of vessels or aircraft for such purposes, provided that their price in New Shekels shall be determined according to the last selling rate on the business day preceding the date of payment, as published in a daily newspaper in Israel. The provision in this clause, whereby the price in New Shekels shall be determined according to the last selling rate, shall not apply to international cargo transport by sea or air in respect of which an arrangement has been established between a sea or air carrier and an international association of airline or shipping companies, within the meaning of Section 3(7) of the Economic Competition Law, 5748–1988.

4.

A service of tourism and vacation packages departing from Israel, provided that their price in New Shekels shall be determined according to the last selling rate on the business day preceding the date of payment, as published in a daily newspaper in Israel.

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Second Schedule (Section 18(b))

1.

[Amendment: Regulations 5772, 5782-2|anchor=Schedule 2 Item 1]

A licensed supplier as defined in the Communications Law (Bezeq and Broadcasting), 5742–1982 (in this Law – the Communications Law), who provides pursuant to that Law one or more of the following services:

(1)a telephony service provided by means of a telecommunications network that is not a mobile radio telephone system;
(2)a telecommunications service provided by means of a telecommunications network that is a mobile radio telephone system, whether the telecommunications network belongs to the service provider or to another licensed supplier;
(3)an internet access service.
2.

[Amendment: Regulations 5772, 5782-2|anchor=Schedule 2 Item 2]

[(Deleted).]

3.

A holder of a general licence for cable broadcasting pursuant to the Communications Law.

4.

A holder of a licence for satellite broadcasting pursuant to the Communications Law.

5.

[Amendment: 5781-2|anchor=Schedule 2 Item 5]

A holder of a gas supplier licence as defined in the Liquefied Petroleum Gas Law, 5781–2020.

6.

A holder of a licence as an essential service provider as defined in the Electricity Sector Law, 5756–1996.

7.

A water supplier as defined in the Water Law, 5719–1959.

8.

[Amendment: Regulations 5772, 5782-2|anchor=Schedule 2 Item 8]

[(Deleted).]

9.

[Amendment: Regulations 5772|anchor=Schedule 2 Item 9]

A dealer who enters into a continuous transaction with a consumer in respect of medical services as defined in Section 13e of the Law.

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Third Schedule (Section 13a)

1.

[Amendment: 5782-2 | Anchor: Third Schedule Item 1]

Telephony service as defined in the Communications Law.

2.

A gas supply service provided by a gas supplier to a gas consumer.

3.

[Amendment: K.T. 5769, 5770-3 | Anchor: Third Schedule Item 3]

[(Deleted).]

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Fourth Schedule (Section 13a1)

In this Appendix –

"Cancellation fees" – any payment that the consumer is required to pay due to cancellation of the transaction, whatever it may be called;

"Linkage differences" – as defined in the Interest and Linkage Law, 5721–1961.

Transaction for the Purchase of a Vacation Unit

1.

[Amendment: 5777-4 | Anchor=Schedule 4 Item 1]

Method of Cancellation and Effective Date

Delivery of a written cancellation notice to the dealer; the cancellation of the transaction shall take effect at the end of the annual period immediately following the delivery of the cancellation notice, and if delivered during the annual period — at the end of that same period.

Conditions Regarding Cancellation

(a)A dealer shall not collect cancellation fees; however, if performance of the transaction has commenced, the dealer may collect from the consumer only the payments set out below:
(1)The proportionate share of the price of the vacation unit for the right of use available to the consumer up to the effective date of the cancellation;
(2)50% of the amount remaining from the price of the vacation unit after deducting the amount pursuant to paragraph (1), provided that the dealer has not restricted the consumer's right to assign the consumer's rights under the Contract, including by way of imposing a payment obligation.
(b)A dealer shall refund to the consumer any amount paid by the consumer for the period following the effective date of the cancellation, with the addition of linkage differentials from the date of payment until the date of refund, or shall cancel the consumer's charge for that period, all except for the amounts the dealer is entitled to deduct in accordance with subsection (a)(2).

In this item —

"vacation unit" — as defined in Section 14a;

"the annual period" — the period in the calendar year during which the consumer has the right to use the vacation unit pursuant to the transaction;

"vacation unit price" — as defined in Section 14a(b)(9).

Transaction for the Purchase of Services at a Fitness Center

2.

[Amendment: 5777-4 | Anchor=Schedule 4 Item 2]

Method of Cancellation and Effective Date

Delivery of a written cancellation notice to the dealer; the cancellation of the transaction shall take effect at the end of one month from the date of delivery of the cancellation notice.

Conditions Regarding Cancellation

(a)A dealer shall refund to the consumer the consideration paid or shall cancel the consumer's charge in respect of the transaction; however, if performance of the transaction has commenced, the dealer may collect only the payments set out below:
(1)The proportionate share of the consideration for the right of use available to the consumer for the period up to the effective date of the cancellation;
(2)Cancellation fees in the amount equal to the product of the number of months from the date on which performance of the transaction commenced until the effective date of the cancellation, multiplied by the difference between the monthly price under the transaction and the monthly price under the alternative plan, provided that the dealer disclosed to the consumer in writing, prior to entering into the agreement, the monthly price under the alternative plan.
(b)Notwithstanding the provisions of subsection (a)(2), the cancellation fees shall not exceed the lower of the amounts calculated pursuant to paragraph (1) or (2) below:
(1)25% of the consideration — if cancelled during the first third of the fixed period, 20% of the consideration — if cancelled during the second third of the fixed period, or 17% of the consideration — if cancelled during the last third of the fixed period;
(2)The amount the consumer would have been required to pay, absent the cancellation, for the remainder of the fixed period from the effective date of the cancellation until the end of the transaction period.

In this item —

"fitness center" — as defined in the Fitness Centers (Licensing and Supervision) Law, 5754–1994, and also any place where sports services or health club services are provided, including swimming pool services, gymnastics and body-sculpting exercises, steam bath or whirlpool bath, all except for a course based on a curriculum that one may join by advance registration only and may not join at a later date, and except for a place providing swimming pool services only, where the pool operates for a period not exceeding five months per year;

"monthly price under the alternative plan" — the monthly price for the same services provided to the consumer in a fixed-period transaction, had the agreement been for an indefinite period, as offered to the consumer in writing prior to entering into the agreement;

"monthly price under the transaction" — the price the consumer is required to pay for the right to use the fitness center during the fixed period pursuant to the transaction, divided by the number of months during which the consumer has such right of use;

"consideration" — any payment a consumer is required to make to a dealer in connection with a transaction with a fitness center, including registration fees.

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Fifth Schedule (Section 14c1)

1.

A certificate attesting to a disability or a confirmation of entitlement to a benefit on account of a disability, issued to a consumer by the National Insurance Institute.

2.

A certificate attesting to a disability issued to a consumer pursuant to the Disabled Persons (Compensation and Rehabilitation) Law, 5719–1959 [Consolidated Version].

3.

[Amendment: 5777 | Anchor: Fifth Schedule Item 3]

A decision of a diagnostic committee pursuant to the Welfare (Care of Persons with Intellectual-Developmental Disabilities) Law, 5729–1969, determining that a person is a person with an intellectual-developmental disability.

4.

A confirmation of entitlement, including partial entitlement, to receive communication support services, issued in accordance with the Social Work Procedures (Ta'a's) as defined in the Social Welfare Services Regulations (Care of Persons in Need), 5746–1986 (hereinafter – "Ta'a's").

5.

A certificate of blindness or visual impairment issued in accordance with the Ta'a's.

6.

A confirmation of recognition by the Service for the Treatment of Persons with Autism at the Ministry of Welfare and Social Services, issued in accordance with the Ta'a's.

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Sixth Schedule (Section 16c(e))

1.

A dealer who contacts a consumer with a marketing communication after the consumer has approached the dealer and requested that the dealer call them back by means of a telephone call; the burden of proof that the consumer requested the dealer to call back as aforesaid lies with the dealer.

2.

A dealer who is bound to a consumer in an ongoing transaction and who contacts the consumer with a marketing communication during the term of the transaction and in relation to that same transaction, including in connection with a modification of its terms (in this item — a permitted communication); the provisions of this item shall not apply to a marketing communication regarding a different transaction or the extension of an existing transaction, unless the consumer requested on their own initiative, in the course of the permitted communication, to extend the term of the existing transaction; the burden of proof that the consumer requested on their own initiative to extend the term of an existing transaction lies with the dealer; for the purposes of this item, "ongoing transaction" — includes a transaction for the supply of gas between a gas consumer and a gas supplier.

3.

A dealer to whom the consumer has given explicit and separate consent to receive marketing communications, provided that such consent was not obtained by means of a telephone call to the consumer's telephone number; consent as aforesaid shall be given in a separate written document, including by electronic means, and it shall be made clear therein that consent to the said marketing communication does not constitute consent to the execution of any transaction between the consumer and the dealer; such consent shall be valid for a period of no more than one year unless the consumer withdraws their consent prior thereto, and its validity may be extended, with the consumer's consent in the manner described above, for no more than one year at a time.

4.

A consumer who has approached the dealer on their own initiative and has given the dealer explicit consent to receive marketing communications from that dealer; the consent shall be valid for one year, however the consumer is entitled to withdraw their consent at any time; the burden of proof with respect to the consumer's consent and its validity lies with the dealer.

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Seventh Schedule (Section 22d(b)(2)): Violation Provisions for Which a Financial Penalty May Be Imposed Under Aggravating Circumstances

SectionViolation DetailsConditions
22c(a)(2)Informed that the consumer has no right to cancel a transaction or receive a refund, and did not qualify the notification in accordance with section 2(b2)
22c(a)(7)Failed to return to the consumer the consideration received, in violation of section 4c(b) or (c)
22c(a)(25a)(b)In a distance sale for the provision of tourism services as stated in section 14c2, failed to act in accordance with the cancellation policy of the tourism service provider outside Israel as stated in section 14c2, if the consumer chose the alternative of the cancellation policy as stated in that section
22c(a)(26)Failed to return to the consumer the consideration paid in accordance with the provisions of section 14f
22c(a)(27)Failed to provide the consumer with a credit voucher or gift voucher (hereinafter – voucher) due to cancellation of a transaction in accordance with section 14g(a) or (d), or failed to allow the consumer to redeem the voucher in accordance with those provisions
22c(a)(31a)Failed to allow the consumer to submit a cancellation notice in any of the methods listed in section 14i(a) and (b), in accordance with the provisions of that section
22c(b)(1)Did something likely to mislead a consumer in a material matter regarding the transaction, in violation of section 2(a) or (c)Regarding section 2(c) – provided that the advertisement is directed to a group of consumers of the type listed in sub-paragraphs (a) through (c) in paragraph (2) to the definition of "aggravating circumstances" in section 22d(b)
22c(b)(3)Exercised unfair influence as stated in section 3(b), except for sub-paragraphs (5) through (7) thereof
22c(b)(8)Continued to charge a consumer payments, in violation of section 13a(c)
22c(b)(9)Failed to allow the consumer to cancel a fixed-period transaction of the type listed in the Fourth Schedule, in the manner and conditions specified therein, in violation of section 13a1
22c(b)(10)Continued to charge a consumer payments for goods or services provided after the cancellation date, in violation of section 13d(c)
22c(b)(13)Collected cancellation fees from a consumer, in violation of section 13f(a)(1) or (2)
22c(b)(14)Failed to return to the consumer part of the transaction price or failed to cancel the consumer charge in accordance with section 13g
22c(b)(15)Failed to return to the consumer the consideration paid in accordance with section 14(b)
22c(b)(16)Failed to return to the consumer the part of the transaction price paid by them or failed to cancel the consumer charge in accordance with section 14e

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Eighth Schedule (Section 22c(d))

1.

Sales Turnover According to Best Judgment (in New Shekels) | Financial Penalty Amount (in New Shekels)

1. Up to 10 million | 500,000

2. Over 10 million and up to 20 million | 1 million

3. Over 20 million and up to 100 million | 5 million

4. Over 100 million | 10 million

Menachem Begin, Prime Minister

Gideon Pat, Minister of Industry, Commerce and Tourism

Yitzhak Navon, President of the State

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⚠ Disclaimer: This is an unofficial AI-assisted translation. The Hebrew version published in the official records (Reshumot) is the sole binding and legally valid text.