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 III: Provisions Regarding Types of Transactions
Definitions
8.
[Amendment: 1981, 1988, 2000]
In this Chapter –
"cash price" – the price set for an asset or service if it is paid in full at the time of entering into the sale agreement or service agreement;
"credit price" – the price set for an asset or service if it includes a surcharge over the cash price by reason of its not being paid in full at the time of entering into the sale agreement or service agreement;
"installment price" – installment payments of the price set for an asset or service that do not include a surcharge over the cash price by reason of its not being paid in full at the time of entering into the sale agreement or service agreement;
"special sale" – an end-of-season sale, a full or partial clearance sale, a sale on the occasion of any event, a sale in which a benefit is offered to the consumer in addition to the goods or services for which the consumer 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 specified period, other than by way of granting a discount to a particular consumer;
"credit transaction" – a transaction for which a credit price has been set;
"advance payment" – a prepayment of the price, in whole or in part, prior to 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 issuance;
"solicitation" – the offer of a transaction to a consumer by a dealer, or by someone on the dealer's behalf, who comes uninvited to the consumer's place of residence, military service, employment, study, or their vicinity, as well as to any place that is not the dealer's or the dealer's representative's place of business (hereinafter – the consumer's premises), or an unsolicited approach by a dealer to a consumer by any means whatsoever, following which the dealer, or someone on the dealer's behalf, came to the consumer's premises in order to enter into a transaction.
Notice of Particulars in a Credit Transaction
9.
(a)The Minister may, by Order, designate goods and services for which a dealer shall not set a credit price in a transaction with a consumer unless the dealer has given the consumer advance notice, in the manner prescribed in that Order, of all or some of the following particulars:
(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 addition to the price;
(4)The installment rates of the credit price, and in a hire-purchase transaction — of the rental payments, and their due dates;
(5)Any term under which the consumer's rights will be adversely affected, and any interest or Fine that may be imposed on the consumer, due to non-fulfillment of any condition of the transaction;
(6)Any stipulation derogating from the rules of evidence, from rules of procedure, or from the local jurisdiction of a court;
(7)Any other particular.
(b)The Minister may, by Order, designate goods and services which, if sold or provided in exchange for an installment price, shall impose upon the dealer an obligation to notify the consumer in writing of every term as detailed in subsection (a)(4), (5) and (6) that has been stipulated for the transaction.
Stating a False Differential
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 surcharge, is in fact greater than that which the dealer disclosed pursuant to Section 9, or that the installment price is higher than the cash price, the consumer may pay according to the lower amount, unless the dealer proves that the source of the discrepancy was a bona fide error that the consumer could have detected under the circumstances of the transaction.
Non-Compliance with an Order
11.
If the dealer has not complied with the provisions of an Order issued pursuant to Section 9, the court may, upon the application of a consumer and having regard to the circumstances of the matter, including the time at which the application was filed, cancel the transaction and order the return of the subject matter of the transaction to the dealer and the return of the consideration or part thereof to the consumer, and may order the dealer to pay expenses incurred by the consumer and may give any other direction that appears just.
Terms Regarding Payments
12.
(a)If the dealer stipulated, in a credit transaction or in a transaction in which the price is an installment price, that the asset shall be forfeited or that the remaining amount shall become immediately and fully payable if the consumer falls into arrears on a single installment payment – the condition is void, unless the transaction is of a type of transaction that the Minister has prescribed by Order as being cancellable due to such arrears and the conditions for such cancellation set out in that Order have been fulfilled.
(b)In a transaction as referred to in sub-section (a) in which the dealer has not fulfilled a material condition thereof, arrears of more than one installment shall not be regarded as grounds for forfeiture of the asset or for a demand for immediate repayment of the outstanding balance.
Prohibition on Conditioning Payment by Debit Card on a Minimum Purchase Amount
12a.
[Amendment: 2025]
(a)A dealer who allows a consumer to pay by debit card shall not condition the possibility of payment by debit card 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 shall 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.
[Amendment: 1988, 2024]
(a)The Minister may, by Order, prescribe transactions in which a dealer shall not be entitled to receive an advance payment from a consumer in an amount exceeding that prescribed in the Order, except under certain conditions prescribed in the Order, or unless the dealer has provided the consumer with 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 the consumer or the service was not provided to the consumer, due to 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 Indexation Law shall apply to such interest, with the necessary modifications.
(c)If the dealer did not provide a guarantee that the dealer was required to provide pursuant to sub-section (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 sub-section (b) in respect of the said delay.
Fixed-Term Transaction
13a.
[Amendment: 5768-2, 5776-2, 5778-3, 5779-2, 5780]
(a)In this section —
"End Date of the Transaction or the Commitment" — one of the following dates, as applicable:
(1)The end date of the transaction pursuant to paragraph (1) of the definition of "fixed-term transaction";
(2)The end date of the period during which goods or services are purchased at a discounted price or during which another benefit is granted therefor, pursuant to paragraph (2) of that definition;
(3)The end date of the effect in linked transactions pursuant to paragraph (3) of that definition;
"Transaction" — as defined in Section 1, excluding a transaction in Real Property or a commitment to effect a transaction, as those terms are defined in Sections 6 and 7 of the Real Property Law, 5729–1969;
"Fixed-Term Transaction" — any of the following:
(1)A transaction for a fixed period for the purchase of goods or services;
(2)A transaction in which, during a fixed period, goods or services are purchased at a discounted price or another benefit is granted therefor, whether the transaction itself is for an indefinite period or for a fixed period, excluding a transaction during 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, for a fixed period, affected by, or affects, the price paid in the other transaction;
"Notice Period" — the period commencing sixty days before the End Date of the Transaction or the Commitment and ending thirty days before that date.
(b)In a fixed-term transaction in which a dealer charges a consumer's account in installments pursuant to a debit authorization, the dealer shall notify the consumer, during the Notice Period, of the End Date of the Transaction or the Commitment; that date shall also be specified 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 14g(b);
(2)In every invoice, receipt or payment notice sent to the consumer during the period commencing three months before the End Date of the Transaction or the Commitment, provided that if more than one such document is sent to the consumer per month, this provision shall apply only once per month; that date shall be set out with special emphasis in clear and legible characters;
(3)In a text message to the mobile telephone number provided by the consumer to the dealer, if provided — 21 days before the End Date of the Transaction or the Commitment, and if the date on which the notice is to be given under this paragraph falls on a Sabbath or holiday — on the day following the Sabbath or 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 from receiving text messages, the dealer shall notify the consumer of the End Date of the Transaction or the Commitment on the said date by telephone call or voice message.
(c)
(1)A term in a Contract stipulating that the relationship between the parties shall continue after the End Date of the Transaction or the Commitment shall have no effect, and the Contract shall be deemed to provide that it expires 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 of the consumer's agreement to the extension, 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 of the consumer's agreement to the extension, 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 terms to the detriment of the consumer, and the consumer shall be entitled to notify the dealer of the revocation of the consumer's 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 End Date of the Transaction or the Commitment; the dealer shall detail the terms of the transaction in the notice and explicitly state therein that the engagement between them will continue after the End Date of the Transaction or the Commitment unless the consumer notifies the dealer of the consumer's 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 Knesset's Economics Committee, 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 as described in paragraphs (2) or (3) of the definition of "fixed-term transaction", provided that all of the following conditions are met:
(a)The amounts of payments that will apply after the End Date of the Transaction or the Commitment were specified clearly and in detail in a written document delivered to the consumer at the time of the engagement between the dealer and the consumer, and such document may state that the specified amounts will be linked to the index as defined in Section 31(b)(3); however, if the payments that will apply after the End Date of the Transaction or the Commitment are determined by the Government or by a Minister, the dealer shall indicate in the notice the price of the transaction at the time of giving the notice, and also that the price will be determined as aforesaid;
(b)The consumer was given notice during the Notice Period in accordance with the provisions of subsection (b), provided that the notice was given in writing and the terms of the transaction were detailed therein; however, there shall be no obligation to give such notice if the End Date of the Transaction or the Commitment falls no later than four months from the date of entering into the transaction, and the consumer shall be entitled to notify the dealer of the termination of the engagement between them, after the End Date of the Transaction or the Commitment, without being charged any payment for 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 the consumer and the dealer lies with the dealer.
Cancellation of a Fixed-Term Transaction
13a1.
[Amendment: 2014-2, 2016-5]
(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" – includes 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 from them.
Sending Invoices and Payment Notices to the Consumer
13b.
[Amendment: 5768-2, 5772-2, 5778, 5779-2, 5780]
(a)Without derogating from the provisions of any law, in a continuous transaction in which a dealer charges a consumer's account in installments pursuant to a debit authorization, the dealer shall send to the consumer, to the consumer's address registered with the dealer, or by a computerized means to which the consumer has given explicit advance consent (in this section — address), at least once every six months, a specification of the payments made during the preceding six months, or a copy of the invoices relating to the payments made by the consumer during that period, including the specification of the payments as aforesaid, if these 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 independent of the scope of consumption or use, unless the consumer has requested to receive at the consumer's address the payment specification as referred to in that subsection.
(b1)
(1)In addition to the provisions of subsection (a), in a continuous transaction the dealer shall send to the consumer, to the consumer's address, in the month of March each year, a notice containing an annual charges specification; the annual charges specification shall include a specification of the amounts charged to the consumer from January 1 to December 31 of the preceding year, including charges in respect of transactions ancillary to the continuous transaction, the total amount of those charges, and the balance of debts that the consumer has not paid up to the date of dispatch of the notice in respect of those charges.
(2)With respect to the debts that the dealer was required to include in the annual charges specification pursuant to paragraph (1), the burden of proof that the consumer has an additional debt beyond the amounts included in the annual charges specification lies with the dealer.
(3)The first annual charges specification shall be sent to the consumer at the consumer's address registered with the dealer; a subsequent annual charges specification may be sent by a computerized means to which the consumer has given explicit consent, as referred to in subsection (a).
(b2)Subsection (b1) shall not apply to a continuous transaction for the sale of goods in which the payment is fixed, uniform and independent of the scope of consumption or use, unless the consumer has requested to receive at the consumer's address the annual charges specification.
(b3)In a continuous transaction, including in a transaction for the supply of gas between a gas consumer and a gas supplier, in which the dealer collects a fixed payment, the dealer shall detail in the invoice or in the payment notice sent to the consumer the components of the fixed payment and their amounts; if the dealer did not detail the components of the fixed payment and their amounts, the dealer shall not be entitled to collect the fixed payment; in this subsection, "fixed payment" — a payment separate from the payment according to the scope of consumption or use that the consumer makes of the goods or services that the dealer supplies to the consumer, or a payment ancillary to a payment according to such scope, by whatever name they may be called.
(c)The Minister, with the approval of the Knesset's Economics Committee, may prescribe provisions regarding the methods of providing or sending invoices, payment notices, receipts or an annual charges specification to the consumer, and also that the provisions regarding the annual charges specification shall not apply to types of dealers as the Minister may prescribe.
Dates of Payment by Direct Debit Authorization
13b1.
[Amendment: 2011]
(a)Notwithstanding any law, in a transaction in which a dealer charges a consumer's account in payments pursuant to a direct debit account authorization, the dealer shall offer the consumer the choice of the monthly charge date on which the payment charge will be executed, 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 collect a surcharge to the payment amount, including interest, indexation differentials or a Fine/Penalty, due to a delay in payment resulting from the implementation of the provisions of this Section.
Sending a Debt Notice to the Consumer
13b2.
[Amendment: 5776-4]
(a)A dealer claiming that a consumer did not pay a charge by the date set therefor 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 for the purpose of collecting a debt from the consumer, including sending a warning prior to the institution of legal proceedings, except for sending a notice containing an annual charges specification as referred to in Section 13b(b1), before 14 days have elapsed from the date of sending the debt notice.
(c)A dealer shall not charge a consumer collection expenses, unless the dealer has sent the consumer a debt notice and the 14 days referred to in subsection (b) have not yet elapsed; in this section, "collection expenses" — including payment for the dispatch of a debt notice, but excluding charging the consumer indexation differences and interest pursuant to law or pursuant to an agreement, or another addition whose amount or rate was prescribed 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 with the dealer, and if there is no such address — to the consumer's registered address in the population registry.
(2)Notwithstanding the provisions of paragraph (1), a dealer may send a consumer a debt notice by text message or by computerized means, provided that the consumer has given explicit advance consent to receive mail from the dealer by computerized means, or to receive text messages concerning a debt notice, as applicable.
(3)A debt notice shall be sent to the consumer directly by the dealer and not through any other 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 clearly:
(a)The name of the dealer, 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 specification of the debt and the manner of its calculation;
(d)The means of contacting the dealer to clarify the debt.
(e)If a consumer has 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 14 days of the date of the request.
(f)If a dealer has claimed collection expenses from a consumer in a claim filed against the consumer before a court or the Enforcement Office, or in enforcement proceedings instituted against the consumer, and the court or the Registrar of the Enforcement Office finds that the dealer did not send the consumer a debt notice, the court or the Registrar may, on its or the consumer's initiative, reduce the debt by all or part of the collection expenses.
Disclosure Obligations in a Continuous Transaction
13c.
[Amendment: 5768-3, 5767-4]
(a)In this Law —
"Continuous Transaction" — a transaction for the purchase of goods or services on a continuous basis, including any modification to or addition to the transaction that does not constitute a new transaction, whether the transaction is a fixed-term transaction or an indefinite-term transaction, 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 Economic Arrangements Law (Legislative Amendments), 5749–1989.
(b)A dealer about to enter into a continuous transaction with a consumer is obligated 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 right as aforesaid with respect to a transaction for an indefinite period;
(2)In a fixed-term transaction — the duration of the transaction and its end date;
(3)A specification of payments that the consumer must pay in respect of the cancellation, if any, pursuant to the terms of the continuous transaction, and the method of calculating such payments, if prescribed;
(4)[(Deleted).]
(c)If the continuous transaction is made in 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 is made orally, the dealer shall provide the consumer, no 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 each other, with special emphasis and in clear and legible characters.
(d)The provisions of subsections (b) and (c) are in addition to, and do not derogate from, the provisions of Sections 4b and 14g; however, if the continuous transaction is a distance selling transaction as referred to in Section 14g, the dealer may include the particulars referred to in subsection (b) in a document pursuant to the provisions of Section 14g(b).
(e)[(Cancelled).]
Cancellation of a Continuing Transaction
13d.
[Amendment: 2008-3, 2017-4]
(a)[(Repealed).]
(b)[(Repealed).]
(c)A contract in a continuing transaction shall terminate within three business days from the day on which a cancellation notice was delivered pursuant to the provisions of Section 14t, and if the cancellation notice was delivered by registered mail – within six business days from the day it was handed 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 supplying 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 14t, and the dealer continued to charge the consumer for payments in respect of the continuing transaction due to circumstances of which the dealer was not and could not have been aware, or which the dealer did not and could not have foreseen, and cancellation of the continuing transaction was impossible due to such circumstances, the provisions of sub-section (c) and Section 31a(a)(2b) shall not apply for as long as those circumstances continue.
Refund for Overcharge in a Continuous Transaction
13d1.
[Amendment: 5772-4, 5779-2, 5780, 5784]
(a)In a continuous transaction in which the dealer charges the consumer's account in installments pursuant to a debit authorization —
(1)If a consumer claims that the dealer has collected from the consumer an amount in excess of the amount the dealer is entitled to collect pursuant to the terms of the engagement (in this section — excess amount), the dealer shall investigate the claim 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, together with shekel interest from the date of collection, plus a payment for the consumer's expenses in the amount of 16 new shekels (in this section — the refund amount), and the provisions of the Interest and Indexation Adjudication 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 billing date, provided that the payment notice for that billing is sent to the consumer within 30 days of the end of the period referred to in paragraph (1).
(b)The dealer shall send the consumer a reasoned written response regarding the findings of the investigation, as referred to in subsection (a), within 21 business days of the date of the consumer's inquiry.
(c)The amounts referred to in subsection (a) shall be updated on January 1 of each year, commencing on the 19th of Tevet 5773 (January 1, 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 Knesset's Economics Committee, may prescribe types of goods and services with respect to which a dealer shall be entitled to investigate the consumer's claim or to refund 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.
[Amendment: 5770-3, 5776, 5777-4]
(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 Maintenance Organization" — as defined in the National Health Insurance Law, 5754–1994;
"Medical Services" — medical treatment as defined in the Patients' Rights Law, 5756–1996, including medical support services, among them ambulance transportation, medical consultation or a doctor's house call, operation of response centers via a distress button, or the supply of a medical device or other medical equipment, excluding such treatment provided by a Health Maintenance Organization or by a Residential Home, whether by themselves or through another on their behalf, and 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 have been met:
(1)A written contract has been 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 has provided the consumer, by the time of signing the Contract, with a form, in the language referred to in paragraph (1), signed by the dealer, containing all the particulars listed 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 signature; Regulations pursuant to Section 4a shall apply, with the necessary modifications, to the disclosure form.
(c)The dealer shall set out accurately, in the disclosure form, all of the following information, and only that information:
(1)Particulars of the dealer: the dealer's name, identity number, address and telephone number, as well as the fax number and electronic mail address, if applicable; if the dealer is a corporation — the dealer shall also specify the type of corporation;
(2)A specification of the services, devices and equipment included in the transaction, including conditions and limitations, if any, regarding 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 during which they will be provided or supplied;
(3)Particulars regarding the total price of the transaction, and the amounts to be paid during the term of the transaction if the total price is not paid in full at the time the transaction is made, as well as the method and terms of payment;
(4)In a fixed-term transaction — the duration of the transaction and its end date, as well as the conditions for its extension after its end date as referred to in subsection (f);
(5)Particulars regarding the consumer's right to cancel the transaction pursuant to the provisions of Section 13f(a)(1), as well as a specification of payments that the consumer must pay for the cancellation of the transaction prior to its end date, if such payments have been stipulated in the Contract pursuant to the provisions of Section 13f(a)(2);
(6)Particulars regarding warranty for the services, devices and equipment included in the transaction, and the warranty conditions.
(d)The provisions of Section 13g shall apply with respect to a continuous transaction concerning medical services, with the necessary modifications and with the following modifications:
(1)Subsections (b) through (d) shall not apply; however, with respect to disclosure obligations, the provisions of this section are in addition to, and do not derogate from, the provisions of Sections 4b and 14g(a) and (b);
(2)[(Deleted).]
(e)In a continuous transaction concerning medical services that is a fixed-term transaction, a dealer shall not enter into a transaction 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 fixed-term transaction, after its end date, for a period not exceeding half a year at any one time, even without having obtained 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 the price thereof, shall not be altered;
(2)The dealer has notified the consumer in writing, during the Notice Period, of the end date of the transaction, has detailed the terms of the transaction in the notice and explicitly stated that the engagement will continue after the end date of the transaction unless the consumer notifies the dealer of the consumer's wish 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 stipulates, expressly or by implication, that after the consumer relocates to a Residential Home, is hospitalized for an extended period in a Medical Institution, or passes away, the charges imposed on the consumer under 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 as of that date.
Cancellation of a Continuous Transaction Concerning Medical Services
13f.
[Amendment: 5770-3, 5777-4]
(a)In a continuous transaction concerning medical services, the consumer is entitled to cancel the transaction, provided that —
(1)If the consumer cancels the transaction within thirty days of the date the Contract was signed by both parties or of 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 already commenced;
(2)If the transaction is a fixed-term transaction and the consumer cancels it prior to its end 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 for cancellation of the transaction prior to its end date were stipulated in advance in the Contract and in the amount as stipulated in the Contract; the Minister may prescribe provisions regarding the maximum amount of cancellation fees that may be stipulated in the Contract.
(b)Nothing in the provisions of this section shall derogate from the provisions of Sections 13d and 14t.
Consequences of Cancellation of a Continuing Transaction Regarding Medical Services
13g.
[Amendment: 2010-3]
Upon cancellation of a continuing transaction regarding medical services –
(1)The dealer shall refund the consumer, on the cancellation date as defined in Section 13d(c), that portion of the transaction price that the consumer paid for the period after the giving of the cancellation notice, or shall cancel the consumer's charge for that period, and shall also provide the consumer with a copy of the charge cancellation notice; if a transaction has been cancelled after performance of the service thereunder has commenced, the consumer shall pay the proportionate consideration for the service provided, and if the consumer received devices or equipment under the transaction, shall make them available to the dealer at the place where they were delivered and shall notify the dealer accordingly;
(2)If the dealer installed devices or equipment at 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 a payment in respect of installation expenses, in an amount not exceeding 100 new shekels.
Tariff Set by Law — Prohibition on Collecting Commission and Methods of Payment
13h.
[Amendment: 5771-2, 5772-3, 5779-2, 5780, 5782]
(a)In this section —
"Postal Bank" — the Company as defined in the Postal Law, 5746–1986, in its provision of financial services as defined in that Law on behalf of the Subsidiary as the term is defined in Section 88ya of that Law;
"Postal Bank" — [(from the Determining Date for the commencement of the Postal Law (Amendment No. 11), 5772–2012, on 31.12.2026):] the Subsidiary as defined in the Postal Law, 5746–1986;
"Credit Card" — [(Deleted);]
"Commission" — a payment for an action performed for the purpose of calculating or determining a charge, or for the method of payment of the charge, excluding a payment pursuant to law for a delay in the payment of the charge.
(b)
(1)A dealer supplying goods or services for which a tariff for payment by a consumer has been set by law (in this section — regulated services or goods) shall not be entitled to collect a commission from a consumer in respect of 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 the payment therefor is made pursuant to an invoice or payment notice from a dealer supplying 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 allow a consumer to pay for regulated services or goods in a continuous transaction also by the following means:
(1)Debit authorization;
(2)[(Deleted);]
(3)Payment, including in cash or by check, at the Postal Bank or at other entities that have undertaken, under an agreement with the dealer, not to collect a commission in respect of regulated services or goods, provided that the payment option at those entities, cumulatively, shall be available on a nationwide basis, as approved by the Minister.
(d)The Minister's approval as referred to in subsection (c)(3) shall be granted to a dealer having regard to the nationwide distribution of the Postal Bank.
(e)If provisions regarding cash payment have been prescribed pursuant to another law or in a license granted to the dealer, the Minister responsible for the regulation of the sector in which the dealer operates, or another body to which powers for the regulation of the sector in which the dealer operates have been granted by law, may direct that the provisions of subsection (c)(3) shall not apply to a particular type of consumer.
Hawking Transaction
14.
[Amendment: 5748, 5758-2, 5770, 5776-5]
(a)In a hawking transaction the consumer is entitled to cancel the agreement —
(1)In a sale — from the date the agreement is made until fourteen days from the date of delivery of the property or from the date of receipt of the particulars prescribed in Regulations pursuant to subsection (d), whichever is later;
(2)In a service, within fourteen days of the date the agreement is made or of the date of receipt of the particulars prescribed in Regulations pursuant to subsection (d), whichever is 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 the service has not yet commenced.
(b)Upon cancellation of an agreement pursuant to subsection (a) or Section 14g1(b) —
(1)The dealer shall refund to the consumer the consideration paid; in respect of a cancellation pursuant to subsection (a)(1) — the consumer shall return the property 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 in respect of the 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 rendered to the consumer, and shall also return to the dealer goods received for the purpose of providing the service, if the consumer received such goods;
(2)If the dealer has installed goods in the consumer's home for the purpose of rendering a service pursuant to the agreement, the dealer shall be entitled to collect from the consumer a payment for the installation expenses in an amount not exceeding 100 new shekels; the Minister, with the approval of the Knesset's Economics Committee, may prescribe types of transactions with respect to which a dealer shall be entitled to collect other amounts for installation expenses and the amounts to be collected.
(b1)Nothing in the provisions of subsection (b) shall derogate from the dealer's right to claim damages on the grounds that the value of the property that is the subject of the transaction has diminished as a result of a material deterioration in its condition.
(c)The provisions of subsection (a) or Section 14g1(b) shall not apply to a transaction in perishable goods.
(d)The Minister may prescribe by Regulations, with the approval of the Knesset's Economics Committee, particulars that a dealer is required to provide to the consumer.
(e)The Minister may, by Order, with the approval of the Knesset's Economics Committee, prescribe that the provisions of this section shall also apply to other transactions conducted away from a permanent place of business.
Transaction Concerning the Purchase of Vacation Units
14a.
[Amendment: 5758-2, 5764-2
Payment by Means of a Payment Instruction
14b.
[Amendment: 1998-2, 2019-2, 2020]
(a)If a consumer undertook 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 charge the payer with the charge amount, in whole or in part, before at least 30 days have elapsed from the date on which a document evidencing the payment transaction executed pursuant to that payment instruction was deposited with the issuer; if the payer notifies the issuer, within the said 30 days, that the transaction has been cancelled pursuant to the provisions of Section 14a(c), the issuer shall not charge the payer with any amount in respect of that transaction.
(b)In this Section –
"means of payment", "payment instruction", "issuance", "payee", "payer" and "payment services to payer" – as defined in the Payment Services Law;
"issuer", of a means of payment – the payer's payment service provider that issued the means of payment;
"document evidencing a payment transaction" – a document as referred to in paragraphs (1) or (2) of the definition of "payment transaction in a document-lacking instrument" in Section 29(a) of the Payment Services Law.
Remote Sale Transaction
14c.
[Amendment: 1998-2, 1998-3, 2004-2, 2010, 2016-5, 2017-4]
(a)In distance marketing, the dealer must 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 service;
(3)The price of the asset or service and the possible payment terms;
(4)The time and manner of supply of the asset or service;
(5)The period during which the offer shall remain valid;
(6)Details regarding the warranty for the asset;
(7)Details regarding the consumer's right to cancel the Contract in accordance with the provisions of subsection (c) or Section 14g1(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 marketing was made, no later than the time of supply of the asset or service, a document containing the following particulars:
(1)The particulars referred to in subsection (a)(1) and (2);
(2)The price of the asset or service and the payment terms applicable to the transaction;
(3)The manner in which the consumer may exercise the right to cancel the transaction in accordance with the provisions of subsection (c) or Section 14g1(c);
(4)The name of the manufacturer and the country of manufacture of the asset;
(5)Information regarding the warranty for the asset or service;
(6)Additional terms applicable to the transaction.
(c)In a remote sale transaction, the consumer may cancel the transaction —
(1)In respect of an asset — from the day on which the transaction was made until fourteen days from the day of receipt of the asset or from the day 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 day on which the transaction was made or from the day 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, which are not days of rest, prior to the date on which the service is due to be provided.
(d)The provisions of subsection (c) and Section 14g1(c) shall not apply to a remote sale transaction in respect of —
(1)Perishable goods;
(2)Accommodation, travel, vacation, or leisure services, if the date of cancellation of the transaction falls within seven days, which are not days of rest, prior to the date on which the service is due to be provided;
(3)Information as defined in the Computer Law, 5755–1995;
(4)Goods that were manufactured especially for the consumer pursuant to the transaction;
(5)Goods that are capable of being recorded, reproduced, or duplicated, where the consumer has opened their original packaging.
(e)The Minister, with the approval of the Knesset's Economics Committee, may prescribe remote sale transactions, not listed in subsection (d), to which all or part of the provisions of this Section shall not apply.
(f)In this Section —
"price of the asset" means the total price of the asset or service, including shipping fees and any other addition or expense that shall apply to the consumer;
"remote sale transaction" means 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 joint presence of the parties to the transaction;
"distance marketing" means an approach by a dealer to a consumer by means of mail, telephone, radio, television, electronic communications of any kind, facsimile, publication of catalogues or advertisements, or by similar means, with the purpose of entering into a transaction other than in the joint presence of the parties, but rather through one of the said means.
Cancellation of a Canvassing Transaction and a Remote Sale Transaction by a Consumer Who Is a Person with a Disability, a Senior Citizen, or a New Immigrant
14c1.
[Amendment: 2016-5]
(a)In this Section —
"person with a disability" means as defined in the Equal Rights for Persons with Disabilities Law, 5758–1998;
"senior citizen" means a person who has reached the age of 65;
"new immigrant" means a person for whom fewer than five years have elapsed since the date on which an immigrant certificate or an immigrant entitlement certificate was issued to them by the Ministry of Aliyah and Immigrant Absorption;
"remote sale transaction" means as defined in Section 14g(f);
"immigrant entitlement certificate" means a certificate issued by the Ministry of Aliyah and Immigrant Absorption to a person who has been found entitled to assistance as an immigrant in accordance with the Ministry's procedures.
(b)In a canvassing 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 day on which the agreement was made, from the day of delivery of the asset, or from the day of receipt of the particulars prescribed in Regulations under Section 14(d), as applicable, 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 day on which the transaction was made, from the day of receipt of the asset, or from the day of receipt of the document containing the particulars referred to in Section 14g(b), as applicable, whichever is the later, provided that the entry into the transaction included a conversation between the dealer and the consumer, including a conversation by means of electronic communications.
(d)Where a consumer who is a person with a disability, a senior citizen, or a new immigrant has requested to cancel a canvassing transaction under subsection (b) or a remote sale transaction under subsection (c), the dealer may require the consumer to present 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 additional proof for the purpose of exercising the right of cancellation as aforesaid; the consumer shall present to the dealer one of the following documents, as applicable, or shall send a copy thereof, including by means of electronic communications 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 an immigrant entitlement certificate;
(3)A certificate attesting that the consumer is a person with a disability for a period exceeding six months, issued by an entity authorized under law to determine the existence of such a disability;
(4)A certificate listed in the Fifth Schedule; the Minister, in consultation with the relevant Minister, may, by Order, amend the Fifth Schedule.
(e)The provisions of this Section are in addition to the provisions of Sections 14 and 14g and shall not derogate therefrom.
Cancellation of a Remote Sale Transaction for the Provision of Tourism Services outside Israel
14c2.
[Amendment: 2019]
(a)Notwithstanding the provisions of Sections 14g(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, with respect to that offered service, to choose between the following alternatives, subject to the provisions of subsections (b) and (c):
(1)A right of cancellation in accordance with the provisions of Sections 14g(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 regarding the cancellation policy for transactions of the type being 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 cancellation dates and, where applicable, the cancellation fees and the possibility of obtaining a refund; the dealer shall also provide the consumer with such particulars in the document pursuant to Section 14g(b).
(c)Where a dealer has published on their website transactions for which both a right of cancellation and a cancellation policy exist, the dealer shall also publish information regarding the cancellation policy, including the particulars referred to in subsection (b).
(d)Where a consumer has chosen the alternative of the cancellation policy 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 them within the timeframes prescribed in Section 14e.
(e)The burden of proof regarding 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 or to Israel that includes a stopover outside Israel, the flight segment 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" means accommodation, travel, vacation, or leisure services;
"outside Israel" means excluding the Area as defined in the Value Added Tax Law, 5736–1975.
14d.
[Amendment: 5758-3, 5776-5, 5777-4]
[(Repealed).]
Consequences of Cancellation of a Transaction
14e.
[Amendment: 1998-3, 2010, 2016-5]
(a)Where a consumer has cancelled a Contract under Sections 14a(c), 14g(c), or 14g1(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 14g(a) and (b), due to non-supply of the asset or service at the time stipulated therefor in the Contract, or due to any other breach of the Contract by the dealer —
(1)The dealer shall refund to the consumer, within 14 days of 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 provide the consumer with a copy of the charge cancellation notice as aforesaid, and shall not collect from the consumer any cancellation fees whatsoever;
(2)Where the consumer has received the asset that is the subject of the transaction or Contract, the consumer shall make it available to the dealer at the place where the asset was delivered to the consumer and shall notify the dealer accordingly, and the same shall apply to any asset that the consumer received as a result of entering into the transaction or Contract.
(b)Where a consumer has cancelled a Contract under Sections 14a(c), 14g(c), or 14g1(c) for reasons other than those listed in subsection (a) —
(1)The dealer shall refund to the consumer, within 14 days of 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 provide the consumer with a copy of the charge cancellation notice as aforesaid, and shall not collect from the consumer any amount whatsoever, 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 Contract, the consumer shall return it to the dealer at the dealer's place of business, and the same shall apply to any asset that the consumer received as a result of entering into the transaction or Contract.
(b1)Without derogating from the provisions of subsections (a) and (b), where a continuous transaction as referred to in Section 14g(c) or 14g1(c) has been cancelled, after the provision of the service thereunder has commenced, the consumer shall pay the proportionate consideration for the service provided to them.
(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 installation expenses, in an amount not exceeding 100 new shekels; the Minister, with the approval of the Knesset's Economics Committee, may prescribe types of transactions in respect of which the dealer may collect other amounts for 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, arising from the fact that the value of the asset has diminished as a result of a significant deterioration in its condition.
(d)In this Section, "cancellation fees" includes expenses or commitments in respect of shipping, packaging, or any other expense or commitment that the dealer claims to have incurred or to have undertaken in connection with the entry into the transaction or Contract, or in connection with its cancellation.
Refund or Credit for Return of Goods
14f.
[Amendment: 2005-2]
(a)In a transaction for the purchase of goods, types of goods, services, or types of services as 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 shall return 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 with respect to the return of the consideration paid by the consumer for the goods or services, including the manner and type of refund, as well as 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 refund amount, at a rate to be prescribed.
(c)Regulations under this Section shall be made with the approval of the Knesset's Economics Committee.
Credit Voucher upon Cancellation of a Transaction
14g.
[Amendment: 2012]
(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 has issued 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 its contents; the Minister may prescribe provisions in this regard;
(2)The amount stated on the credit voucher shall be the amount paid at the time of the transaction;
(3)The credit voucher shall be valid for at least two years from the date of its issuance;
(4)Redemption of the credit voucher shall not be conditioned upon presentation of the invoice issued to the consumer at the time of the transaction;
(5)No condition shall be valid that restricts the possibility of redeeming the credit voucher, including with respect to its redemption in a special sale; the Minister, with the approval of the Knesset's Economics Committee, 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 face of the voucher, in clear letters and with special emphasis, in accordance with the provisions under Section 4a, with respect to a condition included in other information intended for the consumer.
(c)Where a consumer has redeemed a credit voucher for the purchase of goods or services whose price is lower than the amount stated on the voucher, and the difference does not exceed 5% of the amount stated on the voucher or 100 new shekels, whichever is the lower, the consumer shall be entitled to receive the change in cash.
(d)The provisions of this Section shall also apply to a gift voucher.
Purchase Vouchers
14h.
[Amendment: 5774]
(a)In this Section, "purchase voucher" — a card or document purchased for money or money's worth, enabling its holder to purchase goods or services from a dealer in the amount stated thereon, 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 voucher who wishes to limit the validity of the purchase voucher it issues shall indicate on the face of the purchase voucher, in clear lettering and in a conspicuous manner, in addition to its name, also the date of issue and the date of expiry, provided that the validity period of the voucher shall not be less than five years from the date of issue; however, where a bankruptcy order or a winding-up order has been made against the issuer of a purchase voucher, the holder of the voucher 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 on the purchase voucher shall be uniform with respect to all dealers listed thereon.
(d)A dealer who has issued a consumer a credit voucher as change upon redemption of a purchase voucher shall permit the use of the credit voucher at any of its branches; however, it may restrict the use of the credit voucher at a branch operating under a different trade name.
(e)Notwithstanding the provisions of Section 14z(a)(5), a dealer who has issued a consumer a credit voucher against the return of a product purchased with a purchase voucher may restrict the possibility of redeeming the credit voucher subject to the same restrictive conditions appearing on the purchase voucher, provided that these conditions appear on the face of the credit voucher.
(f)The Minister, with the approval of the Knesset's Economics Committee, may prescribe provisions with respect to purchase vouchers, including with respect to conditions that restrict the possibility of their redemption, inter alia in types of sales or with respect to holders of standing discounts at dealers or at particular businesses.
Methods of Cancellation of a Transaction and Duty of Disclosure
14i.
[Amendment: 2017-4]
(a)Where a consumer has the right to cancel a transaction under this Law or under a Contract, the dealer shall enable the consumer to cancel the transaction by a cancellation notice delivered to the dealer by the consumer in any of the following manners and in accordance with the contact details provided by the dealer to the consumer under subsection (d) relating to that manner 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 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 through that medium;
(6)By any other means prescribed by the Minister.
(b)With respect to a transaction that may be entered into with a consumer via the internet, the dealer shall create on the main page of their website a dedicated link through which a cancellation notice may be sent in accordance with the provisions of subsection (a)(5), which shall be placed in a prominent and clear manner.
(c)In a cancellation notice, the consumer shall specify their name and identity number, and where the cancellation notice was delivered orally as referred to in subsection (a)(1) — an additional identifying detail if agreed upon with the consumer at the time of entering into the transaction; the Minister, with the approval of the Knesset's Economics Committee, may prescribe provisions regarding additional particulars that a consumer must provide in the cancellation notice.
(d)A dealer shall disclose to the consumer, in writing, the manners for delivering a cancellation notice as referred to in subsection (a), the contact details relating to each manner of cancellation as referred to in that subsection, and the particulars to be included in the 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" includes in a Contract, a disclosure form, or a document setting out the principal terms of the transaction.
(e)A dealer shall also provide the consumer with information as referred to in subsection (d) in each of the following:
(1)In an invoice, receipt, or payment notice, and with respect to a transaction for a fixed period for which no express consent of the consumer is required for continuation of the engagement — also in a notice regarding the end date of the transaction — sent to the consumer;
(2)Where the dealer has a website — on the main page of the website, and where 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 information particulars to be disclosed to the consumer under subsections (d) and (e) shall appear in close proximity to one another, with special emphasis and in clear and legible letters.
(g)The provisions of this Section shall not apply to cancellation of a transaction under Section 14f; the Minister, with the approval of the Knesset's Economics Committee, may prescribe additional types of transactions and types of dealers to which all or part of the provisions of this Section shall not apply.
Special Sale
15.
[Amendment: 5760, 5768-5]
(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 at the dealer's establishment prior to the sale, the rate of the discount or the price after the discount, as well as the terms and conditions of the special sale.
(b)Where a dealer has 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 original 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 subsection shall not apply to goods or services whose consumer price at the special sale does not exceed 50 new shekels; the Minister, with the approval of the Knesset's Economics Committee, may increase or reduce the said amount with respect to types of goods or services as prescribed, and may also prescribe that the provisions regarding the publication of the minimum number of items offered in a special sale shall not apply to types of goods or types of services as prescribed.
(b2)A dealer who has publicly announced or announced at the place of business a special sale of goods shall maintain, 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)Where the stock of goods offered in a special sale has been depleted, or where the services, in whole or in part, are no longer being offered in a special sale, the dealer shall not continue to publicly advertise or advertise at the place of business the announcement published regarding that sale; however, where part of the items in stock have been depleted as aforesaid, the dealer may continue to publish the announcement only at the place of business, provided that the dealer publishes a notice at the place of business regarding the items that have been depleted.
(c)Nothing in the provisions of this Section shall derogate from the provisions of any law with respect to the display of prices of goods or services.
Special Price
16.
A dealer who has announced a discounted sale, or a special price, for defective goods, or for 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 such announcement the reason for the discount or the special price.
Amendment or Termination of a Consumer Benefits Program
16a.
[Amendment: 2017-5]
(a)In this Section —
"amendment" means a reduction in the benefits or rights granted to a consumer under a benefits program, in their value, in the possibility of redeeming them, or in the period during which they may be redeemed;
"the program", "benefits program" means a continuous engagement between a consumer and a dealer, in which the consumer provides their details for the purpose of joining a program of the type of a customer 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 or not membership in the program involves payment;
"terms of the program" means the terms of the benefits program as set at the time of the engagement between the dealer operating the program and the consumer, or at a later date.
(b)Where a dealer operating a benefits program for an indefinite period wishes to make an amendment to the program or to terminate it —
(1)The dealer shall send the consumer a notice detailing the amendment or the termination date of the program between three and four months prior to the date on which the amendment takes effect or the date of termination of the program, as applicable;
(2)The dealer shall enable the consumer to redeem the benefits in accordance with the terms of the program from the date of dispatch of the notice referred to in paragraph (1) and until at least the date on which the amendment takes effect or the date of termination of the program, as applicable.
(c)Notwithstanding the provisions of subsection (b), where the dealer wishes to make an amendment to the program referred to in that subsection that includes accumulation of rights, or to terminate such a program —
(1)The dealer shall send the consumer a notice detailing the amendment or the termination date of the program between eight and nine months prior to the date on which the amendment takes effect or the date of termination of the program, as applicable; in such notice, the dealer shall also indicate the consumer's right to redeem the rights accumulated by the consumer pursuant to the provisions of paragraph (2);
(2)The dealer shall enable the consumer to redeem the rights accumulated by the consumer in accordance with the terms of the program, from the date of dispatch of the notice referred to in paragraph (1) and until at least the date on which the amendment takes effect or the date of termination of the program, as applicable.
(d)A dealer operating a benefits program for a fixed period shall not make an amendment to the program or terminate the program before the expiry of the fixed period; such a dealer shall send the consumer a notice between three and four months before the expiry of the fixed period, regarding the expiry of the period and the consumer's right to redeem the benefits or rights under the benefits program until the expiry of the period.
(e)Notices as referred to in subsections (b)(1), (c)(1), and (d) shall be sent to the consumer by one of the following means chosen by the consumer 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 date:
(1)Mail;
(2)Electronic mail;
(3)Text message;
(4)Another online communication means.
(f)The Minister, with the approval of the Knesset's Economics Committee, 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 programs or of dealers to which all or part of the provisions of this Section 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)An amendment to a benefits program that includes benefits or rights offered by a dealer other than the dealer operating the program (in this subsection — another dealer), or the termination of such a program, due to any of the following:
(a)A winding-up order, a provisional winding-up order, a receivership order, an assets receivership order, or a stay of proceedings order has been issued against the other dealer under any law, and where the other dealer is an individual — an assets receivership order or a bankruptcy declaration order has been issued against them under any law;
(b)The other dealer has ceased to exist or their place of business has closed;
(2)A special sale as defined in Section 8, which is not a benefit granted pursuant to a benefits program.
Establishment and Management of a Registry for Restricting Marketing Solicitations
16b.
[Amendment: 5781]
(a)In this Section and in Section 16c –
"the Registry" – the registry established pursuant to the provisions of subsection (b);
"marketing solicitation" – a solicitation 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 solicitation 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 means of electronic communication.
(b)The Authority shall establish and manage a registry in which only telephone numbers of consumers who wish to restrict marketing solicitations directed at them by dealers or those acting on their behalf, as provided in Section 16c, shall be registered.
(c)A consumer may request that one or more telephone numbers be registered in the Registry, and may at any time request to change or remove a number 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 consent.
(d)The provisions applicable to databases under the Protection of Privacy Law, 5741–1981, shall apply to the Registry.
(e)The Minister, with the approval of the Economics 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 recorded 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 Economics Committee of the Knesset, may prescribe a fee for processing 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 methods of its collection.
Prohibition on Marketing Approach to a Telephone Number Registered in the Registry
16c.
[Amendment: 5781]
(a)A dealer or a person acting on the dealer's behalf shall not make a marketing approach to a consumer whose telephone number is registered in the Registry, including for the purpose of persuading the consumer to remove their telephone number from the Registry.
(b)Where a telephone number has been registered in the Registry, there is a presumption that the consumer has refused to receive a marketing approach to that telephone number.
(c)Where a dealer wishes to make a marketing approach to a consumer, the dealer shall verify that the telephone number to which the dealer wishes to make the approach is not registered in the Registry.
(d)Where a dealer makes a marketing approach on behalf of another dealer to a telephone number registered in the Registry, the approach 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 the cases, circumstances, and types of transactions listed in the Sixth Schedule; the Minister, with the approval of the Knesset's Economics Committee, may amend the Sixth Schedule.
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