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 V: The Consumer Protection and Fair Trade Authority, the Commissioner, His Role and Powers
The Commissioner
19.
[Amendment: 2006-4]
The Government shall appoint, upon the recommendation of the Minister, a Commissioner for Consumer Protection and Fair Trade; notice of the appointment shall be published in the Official Gazette.
The Consumer Protection and Fair Trade Authority
19a.
[Amendment: 2006-4]
(a)The Consumer Protection and Fair Trade Authority is hereby established.
(b)The Commissioner shall be the Director of the Authority.
Budget of the Authority
19b.
[Amendment: 2006-4]
The budget of the Authority shall be determined in the annual budget law, under a separate budget line, as those terms are defined in the Budget Foundations Law, 5745–1985; the Commissioner shall be the officer responsible for that budget line for the purposes of that Law.
Transactions of the Authority
19c.
[Amendment: 2006-4]
For the purpose of implementing the provisions of this Law, the Commissioner is authorized, together with the Comptroller of the Authority, to represent the Government in transactions as referred to in Sections 4 and 5 of the State Assets Law, 5711–1951, except for transactions in Real Property, and to sign, on behalf of the State, documents relating to such transactions.
Employees of the Authority
19d.
[Amendment: 2006-4]
(a)Employees of the Authority shall be State employees and the provisions of the State Service (Appointments) Law, 5719–1959 shall apply to them.
(b)Employees of the Authority shall act in accordance with the instructions of the Commissioner and under his supervision.
Functions of the Commissioner
20.
[Amendment: 2006-4, 2014-4]
(a)The functions of the Commissioner shall be –
(1)to supervise the implementation of the provisions of this Law;
(1a)to investigate suspected commission of an offense under this Law and to bring the offender to justice;
(1b)to initiate administrative enforcement proceedings against a violator pursuant to the provisions of this Law;
(2)to handle complaints found to have merit concerning violations of the provisions of this Law or other harm to a consumer;
(3)to conduct and initiate surveys and research in consumer affairs;
(3a)to handle restraints between a dealer and a consumer that impair the consumer's ability to switch from one dealer to another;
(4)to handle any other matter connected to consumer protection that has not been assigned by law to another authority.
(b)Where a complaint reaches the Commissioner concerning a matter in which, pursuant to legislation, another authority has the power of supervision and the taking of measures following investigation of a complaint, the Commissioner shall consult with that authority before handling the complaint, and may also transfer the complaint to it; where the Commissioner has transferred the complaint as aforesaid, the authority shall notify the Commissioner of the outcome of its handling.
Authorization of Inspectors
20a.
[Amendment: 2014-4]
(a)The Commissioner may authorize, from among the employees of the Authority, or – with the consent of the Minister – from among the employees of the Ministry of Economy, inspectors who shall be vested with the powers under this Law, in whole or in part; notice of the authorization of an inspector pursuant to this Section shall be published in the Official Gazette.
(b)An inspector shall not be authorized pursuant to the provisions of subsection (a) unless all of the following conditions are met:
(1)The Israel Police has notified, within three months from the date of receipt of the employee's particulars, that it does not object to the authorization on grounds of public safety, including on account of the employee's criminal record;
(2)The inspector has received appropriate training in the area of the powers to be vested in him under this Law, as directed by the Commissioner with the consent of the Minister of Public Security;
(3)The inspector meets the eligibility requirements and has received appropriate training in the field of consumer protection, as directed by the Commissioner.
(c)The authorization of an inspector pursuant to this Section shall be by certificate signed by the Commissioner, attesting to his role as an inspector and to his powers under this Law (hereinafter – "inspector's certificate"); the validity of an inspector's certificate shall not exceed three years from the date of its issuance, and shall remain in force for as long as the inspector serves in his position.
Authorization of Inspectors to Perform Computer Material Intrusion and Output Production
20a1.
[Amendment: 2024-2]
The Commissioner may authorize, from among the inspectors authorized under Section 20a, inspectors who shall be vested with the power to intrude into computer material and to produce output in the course of such intrusion, for the purpose of executing an order as referred to in Section 22(a1); however, inspectors shall not be so authorized unless they have undergone the additional training required for the exercise of such powers, as directed by the Commissioner with the consent of the Minister for National Security.
Identification of an Inspector
20b.
[Amendment: 2014-4]
An inspector shall not exercise the powers vested in him under this Law except while performing his duties, after having identified himself, and provided that both of the following conditions are met:
(1)he is visibly wearing a badge identifying him and his role;
(2)he holds an inspector's certificate, which he shall present upon request.
Supervisory Powers
21.
[Amendment: 2000, 2014-4]
For the purpose of supervising compliance with the provisions under this Law, the Commissioner or an inspector may –
(1)require any person to provide his name and address and to present an identity card or other official document identifying him;
(2)require any person concerned to provide any information or document that may ensure or facilitate compliance with the provisions under this Law; for this purpose, "document" – includes output as defined in the Computers Law, 5755–1995 (in this Law – the Computers Law);
(3)conduct inspections or measurements or take samples for examination, and also direct that samples be submitted for laboratory testing or that they be preserved for a period to be specified, or otherwise dealt with;
(4)enter business premises at any reasonable time, provided that he shall not enter premises used as a residence except pursuant to a court order; the duty of identification and wearing of a badge under Section 20b shall not apply with respect to this power.
21a.
[Amendment: 2006-4, 2014-4]
[(Repealed).]
Administrative Order for Retention of Goods at Business Premises
21b.
[Amendment: 2014-4]
(a)Where the Commissioner or an inspector finds that a dealer has not marked goods in accordance with the provisions of Section 17, he may order that no use be made of the said goods and that they be retained at the business premises, in a manner and for a period to be specified, not exceeding six months; notwithstanding the foregoing, the Commissioner or the inspector may permit the dealer to remove the goods from the business premises in order to mark them as aforesaid at another location; in this Section, "business premises" – includes a warehouse of the dealer, at the dealer's choice.
(b)Where the dealer has notified the Commissioner or the inspector that he has marked the goods, the Commissioner or the inspector shall examine, promptly after the dealer's notification and no later than seven business days from the date of the notification, whether the goods have been marked in accordance with the provisions of Section 17, and if he finds that the goods have been so marked – he shall cancel the order.
Administrative Order to Cease Violation
21c.
[Amendment: 2014-4, 2021, 2024-4]
(a)Where the Commissioner is satisfied that a dealer is in violation of any of the provisions set out below, he may order the dealer to cease the violation, to perform an action necessary to prevent such violation or to remedy it so as to comply with the provision of the Law that was violated, and to notify the Commissioner of the cessation of the violation, the performance of the action to prevent the violation, or the remedy of the violation, as the case may be, in the manner, under the conditions, and within the timeframes to be set out in the order:
(1)the provisions of Section 3(a) or 3a;
(2)provisions under this Law, in a manner likely to impair the discretion of a consumer who is a person with special characteristics in carrying out a transaction, or where the violation concerns a large number of consumers or is likely to cause significant harm to a consumer; in this subsection, "a person with special characteristics" – includes a person with a disability, a senior citizen, or a new immigrant, a minor, a helpless person, or a person who does not know the language in which the transaction was entered into to a degree sufficient for understanding the transaction; for this purpose –
Application to Cancel an Administrative Order by the Court
21d.
[Amendment: 2014-4, 2021]
(a)Any person who considers himself aggrieved by an order issued under Sections 21b or 21c (in this Section – the order) may apply to the Magistrate's Court for its cancellation.
(b)The filing of an application for cancellation of the order under the provisions of subsection (a) does not suspend the validity of the order, for as long as the court has not decided otherwise; where the court decides to suspend the validity of the order ex parte, the application shall be heard inter partes as soon as possible.
(c)The court may cancel the order, confirm it, or modify it.
Powers of the Commissioner, an Inspector, and a Court in Cases of Suspected Commission of an Offense
22.
[Amendment: 2000, 2014-4, 2024-2]
(a)Where the Commissioner or an inspector suspects that a dealer has committed an offense under the provisions of this Law, he may –
(1)investigate any person connected to the offense or who may have knowledge pertaining to the commission of the offense; the provisions of Sections 2 and 3 of the Criminal Procedure Ordinance (Testimony) shall apply to an investigation under this paragraph, with the necessary modifications;
(2)apply to a court for a search warrant pursuant to Section 23 of the Criminal Procedure Ordinance (Arrest and Search) and execute it; the provisions of Sections 24(a)(1), 26 to 28, and 45 of the Criminal Procedure Ordinance (Arrest and Search) shall apply to a search under this paragraph, with the necessary modifications;
(3)seize any object in respect of which he has reasonable grounds to believe is an object connected to the offense; the provisions of Chapter Four of the Criminal Procedure Ordinance (Arrest and Search) shall apply to a seizure under this paragraph, with the necessary modifications.
(a1)Where the Commissioner or an inspector has reasonable suspicion that a dealer has committed an offense as referred to in Section 23a, he may apply to a court for an order to access computer material as defined in the Computer Law, as well as for the production of output through such access, and the provisions of Section 23a of the Criminal Procedure Ordinance (Arrest and Search) shall apply in this regard, with the following modification: instead of "an officeholder skilled in performing the said actions" read "an inspector authorized pursuant to Section 20a1."
(b)In this Section, "object" – includes a document, as well as a computer and computer material as defined in the Computer Law.
The Advisory Committee
22a.
[Amendment: 2006-4]
(a)The Minister, with the consent of the Minister of Finance, shall appoint an advisory committee whose function shall be to advise the Commissioner, upon his request, on any matter relating to consumer protection and fair trade, as well as to advise him in the preparation of the annual report as referred to in Section 22b and in the preparation of the Authority's work plan.
(b)The advisory committee shall consist of six members, as follows:
(1)an employee of the Ministry of Industry, Trade and Employment, of a rank no lower than that of Deputy Director General;
(2)an employee of the Ministry of Finance, of a rank no lower than that of Deputy Director General;
(3)two members of the academic faculty of recognized institutions of higher education within the meaning of the Council for Higher Education Law, 5718–1958;
(4)a representative of a consumer organization as defined in Section 31(c), as designated by the Minister;
(5)a representative of dealers, as designated by the Minister.
(c)The Minister, with the consent of the Minister of Finance, shall appoint one of the members of the advisory committee to serve as its chairperson.
(d)Members of the committee shall be appointed for a period of three years and may be reappointed, provided that they shall not serve for three consecutive terms.
Annual Report
22b.
[Amendment: 2006]
The Commissioner, in consultation with the advisory committee, shall prepare an annual report on the activities of the Authority during that year, and shall submit it to the Government through the Minister.
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Contact Us →Chapter V1: Administrative Enforcement
Section A: Financial Penalty
Monetary Penalty
22c.
[Amendment: 5774-4, 5774-6, 5776-4, 5777-3, 5777-4, 5777-5, 5778, 5778-4, 5779, 5781, 5783-3, 5784-4, 5785, [Official Gazette Notices]]
(a)Where a dealer has violated a provision of the provisions under this Law, as set out below, the Supervisor may impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter in the amount of 22,000 New Shekels [(adjusted to the year 2015; in 2026, NIS 25,950)], and if the dealer is not a corporation — in the amount of 7,000 New Shekels [(adjusted to the year 2015; in 2026, NIS 8,260)]:
(1)gave notice or posted a sign stating that the dealer bears no liability for any bodily harm that may be caused to a consumer within the business premises or on its grounds, contrary to the provisions of Section 2(b1);
(2)gave notice that the consumer has no right to cancel a transaction or to receive a refund, and did not qualify the notice in accordance with the provisions of Section 2(b2);
(3)failed to disclose to the consumer a material detail that the dealer was required to disclose, in accordance with the provisions under Section 4(a)(3);
(4)failed to comply with the provisions under Section 4a(1) with respect to the font size in a standard form contract or in a term included in other information intended for the consumer;
(5)failed to comply with the provisions under Section 4a(2) with respect to the highlighting and manner of drafting of material terms in a standard form contract, or with respect to the attachment of a separate document in relation thereto;
(6)failed to disclose to the consumer the dealer's name and identity number in accordance with the provisions of Section 4b;
(7)failed to refund to the consumer the consideration received from the consumer, contrary to the provisions of Section 4c(b) or (c);
(8)failed to comply with the provisions under Section 4d with respect to the allocation of a designated sales area for supervised foodstuffs;
(9)failed to execute a written contract with the consumer in accordance with the provisions under Section 5(a), or failed to provide the consumer with a reasonable opportunity to review the contract, or failed to deliver a copy thereof as stated in Section 5(b);
(10)set a credit price in a transaction with a consumer without having provided the consumer with advance notice in accordance with the provisions under Section 9;
(10a)conditioned payment by debit card, or by another means of payment if so prescribed, upon a minimum purchase amount, contrary to the provisions under Section 12a;
(11)failed to notify the consumer, during the notice period, of the date of termination of the transaction or the undertaking in accordance with the provisions of Section 13a(b);
(12)failed to send to the consumer a breakdown of payments or copies of invoices in accordance with the provisions under Section 13b(a);
(13)failed to send to the consumer a notice containing an annual itemisation of charges in accordance with the provisions of Section 13b(b1);
(13a)collected a fixed payment, as defined in Section 13b(b3), in a continuous transaction and failed to itemise in the invoice or in the payment notice sent to the consumer the components of the fixed payment and their respective amounts, contrary to the provisions of that Section;
(14)failed to offer the consumer the choice of the monthly billing date on which the payment charge would be executed, in accordance with the provisions of Section 13b1;
(14a)failed to send to the consumer a debt notice or documentation confirming the existence of a transaction, in accordance with the provisions of Section 13b2(a) or (e);
(14b)took action for the purpose of debt collection or charged collection expenses contrary to the provisions of Section 13b2(b) or (c);
(15)failed to disclose to the consumer details that the dealer was required to disclose in accordance with the provisions of Section 13c(b);
(16)failed to include the details referred to in Section 13c(b) in a document pursuant to the provisions of Section 14c(b) or in a contract executed with a consumer, or failed to deliver to the consumer a written document containing the said details, in accordance with the provisions of Section 13c(c);
(17)[(deleted);]
(18)entered into a continuous transaction with respect to medical services without the conditions under Section 13e(b) having been fulfilled;
(19)charged a consumer a commission with respect to supervised services or goods, contrary to the provisions of Section 13h(b);
(20)failed to enable the consumer to pay for supervised services or goods in a continuous transaction by one of the methods listed in Section 13h(c);
(21)in a door-to-door transaction, failed to provide the consumer with details that the dealer was required to provide in accordance with the provisions under Section 14(d);
(22)entered into a transaction for the purchase of vacation units without the conditions under Section 14a(a) having been fulfilled;
(23)charged a customer contrary to the provisions of Section 14b;
(24)failed to disclose to the consumer details that the dealer was required to disclose in accordance with the provisions of Section 14c(a);
(25)failed to provide the consumer with a written document in accordance with the provisions of Section 14c(b);
(25a)in a distance sale transaction for the provision of tourism services as referred to in Section 14c2 —
(a)offered the consumer alternatives as referred to in that Section and failed to disclose to the consumer details that the dealer was required to disclose in accordance with the provisions of Section 14c2(b) and (c);
(b)failed to act in accordance with the cancellation policy of the tourism service provider outside Israel as referred to in Section 14c2, where the consumer chose the cancellation policy alternative as referred to in that Section;
(26)failed to refund to the consumer the consideration paid by the consumer in accordance with the provisions under Section 14f;
(27)failed to give the consumer a credit voucher or gift voucher (in this Section — voucher) upon cancellation of a transaction in accordance with the provisions of Section 14g(a) or (d), or failed to enable the consumer to redeem the voucher in accordance with those provisions;
(28)failed to indicate on the voucher the details referred to in Section 14g(b);
(29)failed to give the consumer who redeemed a voucher the surplus in cash in accordance with the provisions of Section 14g(c);
(30)issued a gift card contrary to the provisions of Section 14h(b) and (c);
(31)failed to enable the use of a credit voucher given as change upon redemption of a gift card in accordance with the provisions of Section 14h(d);
(31a)failed to enable the consumer to provide the dealer with notice of cancellation of a transaction by any of the means listed in Section 14i(a) and (b), pursuant to the provisions of that Section;
(31b)failed to disclose to the consumer information that the dealer was required to disclose in accordance with the provisions of Section 14i(d) and (e);
(32)gave public notice or posted a notice at the place of business of a special sale and failed to clarify the details or conditions referred to in Section 15(a), or failed to maintain a reasonable inventory of goods in accordance with the provisions of Section 15(b2);
(33)gave public notice of a special sale and failed to include in the advertisement the details that the dealer was required to include therein in accordance with the provisions under Section 15(b1);
(34)continued to publish publicly or at the place of business a notice of a special sale that the dealer had published, contrary to the provisions of Section 15(b3);
(35)failed to include in a notice of a sale at a discount or at a special price the reason for the discount or special price, contrary to the provisions of Section 16;
(35a)made a change to an open-ended loyalty programme or terminated such a programme and failed to send the consumer a notice in accordance with the provisions of Section 16a(b)(1);
(35b)failed to enable the consumer to redeem the benefits in accordance with the terms of an open-ended loyalty programme, contrary to the provisions of Section 16a(b)(2);
(35c)made a change to an open-ended loyalty programme that includes accrual of rights, or terminated such a programme, and failed to send the consumer a notice in accordance with the provisions of Section 16a(c)(1);
(35d)failed to enable the consumer to redeem the rights accrued by the consumer in accordance with the terms of an open-ended loyalty programme, contrary to the provisions of Section 16a(c)(2);
(35e)sent the consumer notices not in accordance with the provisions under Section 16a(e) or (f)(1);
(36)failed to mark on goods intended for a consumer or attached thereto the details required in accordance with the provisions under Section 17;
(37)failed to display on goods or on their packaging the total price thereof in accordance with the provisions of Section 17b(a), (b) and (c);
(38)charged a consumer a price higher than the binding price of goods, contrary to the provisions of Section 17b(d);
(39)failed to display, in addition to or in place of the total price, the price per unit of measure, weight or volume, in accordance with the provisions under Section 17b(e);
(40)failed to display the total price required for the provision or performance of a service in accordance with the provisions under Section 17c;
(41)published or quoted a price of an asset or service not in accordance with the provisions of Section 17d;
(42)failed to include in the displayed price the rate of increase or decrease of a tax, fee or mandatory payment in accordance with the provisions of Section 17e;
(43)set a price in Israeli currency for an asset or service as detailed in Part B of the First Schedule, the price of which was displayed, published or quoted in foreign currency, otherwise than in accordance with the exchange rate prescribed in the First Schedule, contrary to the provisions of Section 17g(b);
(43a)failed to install a weighing device at the place of business, contrary to the provisions under Section 17h;
(44)sold, imported or held for the purpose of sale, goods in respect of which an obligation under Chapter IV had not been fulfilled, contrary to the provisions of Section 18;
(45)failed to provide the consumer with a warranty service or warranty certificate, or failed to affix or deliver a warranty sticker, in accordance with the provisions under Section 18a;
(46)failed to provide a free telephone service in accordance with the provisions under Section 18b(a)(1) or (b);
(47)failed to disclose to the consumer details that the dealer is required to disclose in accordance with the provisions of Section 18b(a)(2);
(47a)failed to provide professional human response to a consumer in accordance with the provisions under Section 18b(a1) or (b);
(48)made telephone contact with a consumer not in accordance with the provisions of Section 18c(b).
(b)Where a dealer has violated a provision of the provisions under this Law, as set out below, the Supervisor may impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter in the amount of 45,000 New Shekels [(adjusted to the year 2015; in 2026, NIS 53,070)], and if the dealer is not a corporation — in the amount of 25,000 New Shekels [(adjusted to the year 2015; in 2026, NIS 29,490)]:
(1)did an act likely to mislead a consumer with respect to a material matter in a transaction, contrary to the provisions of Section 2(a) or (c);
(2)sold, imported or held an asset containing a misleading element, or used such an asset in the provision of a service, contrary to the provisions of Section 2(b);
(3)exercised unfair influence as referred to in Section 3(b), excluding paragraphs (5) to (7) thereof;
(4)failed to disclose to the consumer details that the dealer is required to disclose in accordance with the provisions of Section 4(a)(1) or (2);
(5)published misleading advertising contrary to the provisions of Section 7(c);
(6)published advertising or employed another marketing method not in accordance with the provisions under Section 7a;
(7)one of the conditions set out in Section 7b(b) applies to the dealer and the dealer presented or advertised itself, directly or indirectly, as an entity whose sole purpose is to protect the consumer or to advise the consumer, or called or designated itself by a name from which it may be inferred that it acts for such a purpose, contrary to the provisions of Section 7b(a);
(8)continued to charge a consumer payments, contrary to the provisions of Section 13a(c);
(9)failed to enable the consumer to cancel a fixed-term transaction of a type listed in the Fourth Schedule, in the manner and under the conditions set out therein, contrary to the provisions of Section 13a1 or Section 3 of the Consumer Protection Law (Amendment No. 37), 5774–2014;
(10)continued to charge the consumer payments for goods or services provided after the date of cancellation, contrary to the provisions of Section 13d(c);
(11)failed to refund to the consumer a surplus amount in the charging of a continuous transaction in accordance with the provisions of Section 13d1(a);
(12)entered into a contract with a consumer for a period exceeding one year, in a continuous transaction with respect to medical services that is a fixed-term transaction, contrary to the provisions of Section 13e(e);
(13)charged a consumer cancellation fees, contrary to the provisions of Section 13f(a)(1) or (2);
(14)failed to refund to the consumer a portion of the transaction price or failed to cancel the consumer's charge in accordance with the provisions of Section 13g;
(15)failed to refund to the consumer the consideration paid by the consumer in accordance with the provisions of Section 14(b);
(16)failed to refund to the consumer the portion of the transaction price paid by the consumer or failed to cancel the consumer's charge in accordance with the provisions of Section 14e;
(16a)made a change to a fixed-term loyalty programme or terminated such a programme before the expiry of the fixed term, contrary to the provisions of Section 16a(d);
(16b)made a marketing approach to a telephone number registered in the database, contrary to the provisions of Section 16c;
(17)violated a condition of the additional conditions included in a letter of undertaking submitted to the Supervisor, which the dealer is required to comply with in accordance with the provisions of Section 22p(c).
(b1)Where a dealer has exercised unfair influence as referred to in Section 3(b)(5) or (6), the Supervisor may impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter in the amount of 69,120 New Shekels [(adjusted to the year 2023; in 2026, NIS 75,620)], and if the dealer is not a corporation — in the amount of 38,415 New Shekels [(adjusted to the year 2023; in 2026, NIS 42,030)].
(c)
(1)Without derogating from the provisions of subsections (a) to (b1), where a dealer has violated an administrative order to cease a violation as referred to in Section 21c, the Supervisor may impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter in an amount of three times the amount of the monetary penalty for the violation in respect of which the order was issued, and with respect to the violation of an administrative order as aforesaid that was issued due to a violation of Section 3(a) — three times the amount of the monetary penalty prescribed in Section 22c(b).
(2)Where a monetary penalty has been imposed for a violation of an administrative order to cease a violation as referred to in paragraph (1), the counting of days of the continuing violation of the violation in respect of which the order was issued shall cease on the day on which the order was issued, and no monetary penalty shall be imposed for the continuing violation of that violation in respect of the period thereafter.
(d)
(1)Notwithstanding the provisions of subsection (c), where a dealer has violated an administrative stop order to cease a violation as referred to in Section 21c, due to a violation of the provisions of Section 3a, the Supervisor may impose upon the dealer a monetary penalty, pursuant to the provisions of this Chapter, at a rate of five percent of the dealer's sales turnover in the financial year preceding the commission of the violation, with respect to each type of goods or service in relation to which the violation was committed, provided that the amount of the monetary penalty shall not exceed 10 million New Shekels [(adjusted to the year 2024; in 2026, NIS 10,586,720)] per type of goods or service.
(2)Where the Supervisor does not have information regarding the sales turnover of the violator, the Supervisor may require the violator, by written notice, to provide additional information and particulars necessary for that purpose, within a period specified in the notice.
(3)Where the dealer has not provided what is required pursuant to the provisions of paragraph (2) within the period specified in the notice, the Supervisor may determine the dealer's sales turnover at the Supervisor's best judgment and impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter in the amount specified with respect thereto in the Eighth Schedule, provided that the said notice shall set out the amounts of the monetary penalty that the Supervisor may impose upon a dealer who has not provided information regarding sales turnover.
Violation under Aggravating Circumstances
22d.
[Amendment: 5774-4, 5783-3]
(a)Where the Supervisor has reasonable grounds to believe that a dealer has violated a provision of the provisions under this Law listed in Section 22c, under aggravating circumstances, the Supervisor may impose upon the dealer a monetary penalty pursuant to the provisions of this Chapter, at a rate of one and a half times the amount of the monetary penalty that may be imposed for that violation pursuant to Section 22c, provided that with respect to aggravating circumstances as referred to in paragraph (2) of the definition of "aggravating circumstances", the Supervisor shall not impose such a monetary penalty except in accordance with the procedures prescribed by the Supervisor.
(a1)Notwithstanding the provisions of subsection (a) —
(1)with respect to a violation as referred to in Section 22c(b1), the Supervisor shall not impose a monetary penalty under aggravating circumstances as referred to in paragraph (2) of the definition of "aggravating circumstances";
(2)the rate of the monetary penalty to be imposed for a violation in respect of which aggravating circumstances as referred to in paragraphs (1) and (2) of the definition of "aggravating circumstances" are present shall not exceed one and a half times the amount of the monetary penalty that may be imposed for that violation.
(b)In this Section, "aggravating circumstances" means any of the following:
(1)a violation concerning a particularly large number of consumers; for this purpose, there is a presumption that a violation committed by a dealer at more than one branch or point of sale operated by the dealer is a violation concerning a particularly large number of consumers;
(2)a violation of a provision of the provisions under this Law listed in the Seventh Schedule, committed against a consumer who is one of the following:
(a)a senior citizen or new immigrant as defined in Section 14c1(a), or a minor;
(b)a person who is visibly in a state of intellectual, mental or physical vulnerability;
(c)a person who is visibly not sufficiently proficient in the language in which the transaction is being entered into for the purpose of entering into the transaction.
(c)The Minister, with the approval of the Knesset Economic Affairs Committee, may, by order, amend the Seventh Schedule, provided that violations added to the said Schedule shall be from among the violations listed in Section 22c(a) or (b).
Notice of Intent to Charge
22e.
[Amendment: 5774-4, 5783-3]
(a)Where the Supervisor has reasonable grounds to believe that a dealer has violated a provision of the provisions under this Law listed in Section 22c (in this Chapter — the violator), and the Supervisor intends to impose upon the violator a monetary penalty pursuant to that Section or pursuant to Section 22d, the Supervisor shall deliver to the violator a notice of the intention to impose a monetary penalty (in this Chapter — notice of intent to charge).
(b)In the notice of intent to charge, the Supervisor shall state, inter alia, the following:
(1)the act or omission (in this Chapter — the act) constituting the violation;
(2)the amount of the monetary penalty and the period for its payment, in accordance with the provisions of Section 22k;
(3)the violator's right to submit arguments to the Supervisor pursuant to the provisions of Section 22f;
(4)the rate of the addition to the monetary penalty for a continuing violation or a repeated violation pursuant to the provisions of Section 22j;
(5)particulars of aggravating circumstances in the commission of the violation, if any.
Right to Be Heard
22f.
[Amendment: 5774-4, 5783-3]
(a)A violator upon whom a notice of intent to impose liability has been served pursuant to the provisions of Section 22e may present arguments before the Supervisor, in writing or orally, as the Supervisor shall direct, with respect to the intention to impose a financial penalty upon the violator, with respect to its amount, and with respect to the existence of aggravating circumstances, if aggravating circumstances were specified in the notice of intent to impose liability, within 45 days of the date of delivery of the notice.
(b)The Supervisor may, at the request of the violator, extend the period referred to in sub-section (a) by a period not exceeding 45 days.
Supervisor's Decision and Payment Demand
22g.
[Amendment: 5774-4]
(a)Where the violator has submitted arguments to the Supervisor pursuant to the provisions of Section 22f, the Supervisor shall decide, after having considered the arguments submitted, whether to impose a monetary penalty upon the violator, and the Supervisor may reduce the amount of the monetary penalty pursuant to the provisions of Section 22h.
(b)
(1)Where the Supervisor has decided pursuant to the provisions of subsection (a) to impose a monetary penalty upon the violator, the Supervisor shall deliver to the violator a demand to pay the monetary penalty (in this Chapter — payment demand); in the payment demand, the Supervisor shall state, inter alia, the updated amount of the monetary penalty as referred to in Section 22i and the period for its payment as referred to in Section 22k.
(2)Where the Supervisor has decided pursuant to the provisions of subsection (a) not to impose a monetary penalty upon the violator, the Supervisor shall deliver to the violator notice thereof.
(c)In the payment demand or in the notice pursuant to subsection (b), the Supervisor shall set out the reasons for the Supervisor's decision.
(d)Where the violator has not requested to submit arguments pursuant to the provisions of Section 22f(a) within 45 days from the day on which the notice of intent to charge was delivered to the violator, or within a longer period prescribed pursuant to Section 22f(b), if so prescribed, that notice shall, upon the expiry of the said period, be deemed a payment demand delivered to the violator on the said date.
Reduced Amounts
22h.
[Amendment: 5774-4]
(a)The Supervisor is not permitted to impose a financial penalty in an amount lower than the amounts prescribed in this Division, except pursuant to the provisions of sub-section (b).
(b)The Minister, with the consent of the Minister of Justice and with the approval of the Economics Committee of the Knesset, may prescribe cases, circumstances, and considerations by reason of which it shall be permissible to reduce the amounts of the financial penalty prescribed in this Division, at rates to be determined.
Updated Amount of the Financial Penalty
22i.
[Amendment: 5774-4]
(a)The financial penalty shall be in accordance with its updated amount on the date of delivery of the payment demand, and with respect to a violator who did not present arguments before the Supervisor as referred to in Section 22f — on the date of delivery of the notice of intent to impose liability; where an appeal against a payment demand has been filed pursuant to Section 22k(a) and the Supervisor has agreed or the court has ordered the stay of payment of the financial penalty pursuant to Section 22k(b), the amount of the financial penalty shall be in accordance with its updated amount on the date of the decision on the appeal.
(b)The amounts of the financial penalty as referred to in Section 22c shall be updated on the 1st of January of each year (in this sub-section — the update date), in accordance with the rate of change of the index known on the update date compared to the index that was known on the update date of the preceding year; the said amount shall be rounded to the nearest amount that is a multiple of 10 new shekels; for this purpose, "index" — the Consumer Price Index published by the Central Bureau of Statistics.
(c)The Supervisor shall publish in the Official Gazette a notice of the updated amounts of the financial penalty pursuant to sub-section (b).
Continuing Violation and Repeated Violation
22j.
[Amendment: 5774-4]
(a)In the case of a continuing violation, one-fiftieth of the financial penalty prescribed for that violation shall be added thereto for each day on which the violation continues; for this purpose, "continuing violation" — a violation of a provision of this Law as detailed in Section 22c, after a payment demand has been delivered to the violator in respect of a violation of that provision, or after an administrative warning within the meaning of Section 22ic has been delivered to the violator in respect of a violation of that provision and the warning has not been cancelled as referred to in Section 22id.
(b)In the case of a repeated violation, an amount equal to half of the financial penalty that could have been imposed in respect thereof had it been a first violation shall be added to that financial penalty; for this purpose, "repeated violation" — a violation of a provision of this Law as detailed in Section 22c, within two years of a prior violation of that same provision in respect of which a financial penalty was imposed upon the violator or in respect of which the violator was convicted, provided however that in respect of a violation under Section 22c(a)(37) or (38) — within nine months of a prior violation of those provisions.
Time for Payment of the Financial Penalty
22ja.
[Amendment: 5774-4]
The financial penalty shall be paid within 45 days of the date of delivery of the payment demand as referred to in Section 22g.
Shekel Interest and Late Payment Fees
22jb.
[Amendment: 5774-4, 5784]
Where a financial penalty has not been paid on time, shekel interest and late payment fees shall be added thereto for the period of delay until payment thereof, and the provisions of the Interest and Linkage Law shall apply, mutatis mutandis.
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