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

Section B: Administrative Warning

Administrative Warning

22jc.

[Amendment: 5774-4]

(a)Where the Supervisor has reasonable grounds to believe that a trader has violated a provision among those under this Law as detailed in Section 22c, and the circumstances enumerated in the procedures prescribed by the Supervisor are present, the Supervisor may serve upon the violator, in lieu of a notice of intention to impose liability, an administrative warning in accordance with the provisions of this Section.

(b)In an administrative warning, the Supervisor shall specify the act constituting the violation, shall notify the violator that he must cease the violation and that if he continues or repeats the violation he shall be liable to a monetary sanction for a continuing violation or a repeated violation, as the case may be, as provided in Section 22i, and shall further specify the violator's right to request the cancellation of the warning in accordance with the provisions of Section 22id.

Application to Cancel an Administrative Warning

22jd.

[Amendment: 2014-4]

(a)Where an administrative warning has been served on a violator as provided in Section 22yg, the violator may apply to the Supervisor, in writing, within 45 days, requesting the cancellation of the warning on one of the following grounds:

(1)the violator did not commit the violation;

(2)the act committed by the violator, as detailed in the warning, does not constitute a violation.

(b)Where the Supervisor has received an application to cancel an administrative warning pursuant to the provisions of subsection (a), the Supervisor may cancel the warning or reject the application and leave the warning in force; the Supervisor's decision shall be given in writing and served on the violator together with the reasons for the decision.

Continuing Violation and Repeated Violation Following a Warning

22if.

[Amendment: 5774-4]

(a)Where an administrative warning has been served upon a violator pursuant to the provisions of this Division and the violator continued to violate the provision in respect of which the warning was sent to him, the Supervisor shall serve upon the violator a payment demand for a continuing violation as provided in Section 22i(a); a payment demand does not derogate from the trader's right to argue as provided in Section 22f with respect to the amount of the monetary sanction and with respect to the continuation of the violation, and the provisions of Sections 22f and 22g shall apply, with the necessary modifications.

(b)Where an administrative warning has been served upon a violator pursuant to the provisions of this Division and the violator again violated the provision in respect of which the warning was sent to him, within two years from the date of service of the warning, and with respect to a violation under Section 22c(a)(37) or (38) — within nine months from the date of service of the warning, such additional violation shall be deemed a repeated violation for the purposes of Section 22i(b), and the Supervisor shall serve upon the violator a notice of intention to impose liability in respect of the repeated violation; a violator upon whom a notice of intention to impose liability has been served as aforesaid may present his arguments before the Supervisor, and the provisions of Sections 22f and 22g shall apply, with the necessary modifications.

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Section C: Undertaking to Refrain from Infringement

Undertaking to Refrain from Infringement

22ig.

[Amendment: 2014-4]

(a)Where the Supervisor has reasonable grounds to believe that a person has violated a provision among the provisions under this Law listed in Section 22c, and where the circumstances enumerated in the procedures prescribed by the Supervisor are satisfied, the Supervisor may offer the violator, by written notice, to submit to the Supervisor an undertaking letter and a bond of a type to be determined in the procedures, in accordance with the provisions of this Division, in lieu of the financial penalty that could have been imposed on the violator pursuant to the provisions of Division A.

(b)In the undertaking letter, the violator shall undertake to cease the violation of the provision referred to in subsection (a), and to refrain from any further violation of the same provision within a period to be determined by the Supervisor, commencing on the date of delivery of the notice referred to in that subsection, provided that the said period shall not exceed the period referred to in the definition of "repeat violation" in Section 22j(b), as the case may be (in this Division – the undertaking period).

(c)The Supervisor may require that the violator include in the undertaking letter additional conditions that the violator must meet during the undertaking period for the purpose of reducing the harm caused by the violation or preventing its recurrence, including –

(1)the return of money or property to a consumer or to a consumer public, within a period to be prescribed by the Supervisor;

(2)the publication of public notices regarding the violation and regarding the undertaking letter, as the Supervisor shall direct and within the period the Supervisor shall prescribe.

(d)The Supervisor shall determine the amount of the bond that the violator must deposit in addition to the undertaking letter; the amount of the bond shall be equal to the amount of the financial penalty that the Supervisor was entitled to impose on the violator in respect of that violation, taking into account the existence of mitigating circumstances in accordance with the provisions pursuant to Section 22h(b).

Consequences of Submission or Non-Submission of Letter of Undertaking and Bond

22jg.

[Amendment: 2014-4]

(a)Where the violator has submitted to the Supervisor a letter of undertaking and bond pursuant to this Division, within 45 days from the date of delivery of the notice referred to in Section 22טז(a), no financial penalty shall be imposed upon the violator in respect of that violation.

(b)Where the violator has not submitted to the Supervisor a letter of undertaking and bond within 45 days from the date of delivery of the notice referred to in Section 22טז(a), the Supervisor shall deliver to the violator a notice of intention to impose a charge in respect of that violation.

Breach of Undertaking

22jh.

[Amendment: 2014-4]

(a)Where the violator has submitted an undertaking letter and bond pursuant to this Division and has breached a condition of the undertaking, as detailed below, the following provisions shall apply, as the case may be:

(1)Where the violator has continued, during the undertaking period, to violate the provision in respect of whose violation the violator gave the undertaking letter – the Supervisor shall forfeit the bond and shall issue to the violator a payment demand in respect of the continuing violation, as provided in Section 22j(a);

(2)Where the violator has again violated, during the undertaking period, the provision in respect of whose violation the violator gave the undertaking letter – the Supervisor shall forfeit the bond and the further violation as aforesaid shall be deemed a repeat violation for the purposes of Section 22j(b); the Supervisor shall issue to the violator a notice of intent to charge in respect of the repeat violation;

(3)Where the violator has breached a condition among the additional conditions included in the undertaking letter as provided in Section 22טז(c) – the Supervisor shall notify the violator of the Supervisor's intention to forfeit the bond; the violator may submit arguments on this matter, in writing or orally, as the Supervisor shall direct, within 45 days from the date of the Supervisor's notice, and the Supervisor may, at the request of the violator, extend this period by a period not exceeding 45 days.

(b)For the purposes of this Chapter, the forfeiture of the bond pursuant to the provisions of this section shall be deemed the imposition of a financial penalty on the violator in respect of the violation for which the bond was given.

(c)Where a condition of the undertaking has been breached as provided in this section, and the violator has again violated the provision in respect of whose violation the violator gave the undertaking letter, the Supervisor shall not issue to the violator a notice regarding the possibility of submitting a further undertaking letter pursuant to the provisions of this Division.

Return of the Bond

22ji.

[Amendment: 2014-4, 2024, 2026]

Where the violator has complied with the conditions of the undertaking letter submitted pursuant to this Division, the bond deposited by the violator shall be returned upon the expiry of the undertaking period; the bond, unless it was a bank guarantee, shall be returned with the addition of shekel interest from the date of its deposit until the date of its return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.

[(With effect from 30.9.2026):] Where the violator has complied with the conditions of the undertaking letter submitted pursuant to this Division, the bond deposited by the violator shall be returned upon the expiry of the undertaking period; the bond, unless it was a bank guarantee or a guarantee from another guarantor, shall be returned with the addition of shekel interest from the date of its deposit until the date of its return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.

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Section D: General Provisions

Appeal

22k.

[Amendment: 2014-4, 2024]

(a)A payment demand and an administrative warning may be appealed to the Magistrate's Court before which the President of the Magistrate's Court sits; such an appeal shall be filed within 45 days from the date on which the payment demand was served or from the date on which the decision of the Supervisor on the application to cancel the administrative warning was served.

(b)The filing of an appeal against a payment demand shall not operate to stay the payment of the financial penalty, unless the Supervisor has consented thereto or the court has so ordered.

(c)If the court decides to allow an appeal against a payment demand and orders the return of the amount paid or the reduction of the financial penalty amount, after the financial penalty has been paid in accordance with the provisions of this Chapter, the financial penalty amount paid, or any portion thereof that was reduced, shall be returned together with shekel interest from the date of its payment until the date of its return, and the provisions of the Interest and Indexation Adjudication Law shall apply with respect to such interest, with the necessary modifications.

Publication

22ka.

[Amendment: 5774-4]

(a)Where a monetary sanction has been imposed under this Chapter, the Superintendent shall publish on the Authority's website, and by an additional means if so decided, the following particulars, in a manner that ensures transparency in the exercise of discretion in the decision to impose the monetary sanction:

(1)the fact of the imposition of the monetary sanction;

(2)the nature of the violation for which the monetary sanction was imposed and the circumstances of the violation;

(3)the amount of the monetary sanction imposed;

(4)if the monetary sanction was reduced — the circumstances by reason of which the amount of the sanction was reduced and the percentages of reduction;

(5)particulars concerning the violator;

(6)the name of the violator — if the violator is a corporation.

(b)Where an appeal has been filed against a payment demand under Section 22k, the Superintendent shall publish the fact of the filing of the appeal and its outcome in the same manner in which the Superintendent published the fact of the imposition of the monetary sanction.

(c)Notwithstanding the provisions of sub-section (a)(6), the Superintendent may publish the name of a violator who is an individual, after having given that person an opportunity to present arguments on the matter, if the Superintendent considers it necessary for the purpose of warning the public.

(d)Notwithstanding the provisions of this Section, the Superintendent shall not publish particulars that constitute information which a public authority is precluded from disclosing under Section 9(a) of the Freedom of Information Law, 5758–1998, and the Superintendent may also refrain from publishing particulars under this Section that constitute information which a public authority is not required to disclose under Section 9(b) of that Law.

(e)Publication as referred to in sub-section (a) in relation to a monetary sanction imposed on a corporation shall be for a period of four years, and in relation to a monetary sanction imposed on an individual — two years.

(f)The Minister of Justice, in consultation with the Minister and with the approval of the Knesset's Economics Committee, shall prescribe provisions regarding the manner of publication on the internet under this Section, in order to prevent, to the extent possible, access to particulars published under sub-section (a) or (c) upon the expiry of the publication period referred to in sub-section (e); if no such Regulations have been promulgated, the Superintendent shall publish on the internet the particulars listed in sub-sections (a) or (c), as applicable, in a manner that prevents, to the extent possible, the identification of the violator.

[The Consumer Protection (Manner of Publication of the Imposition of a Monetary Sanction) Regulations, 5779–2018, have been promulgated.]

Preservation of Criminal Liability

22kb.

[Amendment: 5774-4, 5784, 5786]

(a)Payment of a monetary sanction, service of an administrative warning, or the furnishing of a letter of undertaking and a bond under this Chapter shall not derogate from the criminal liability of a person for a violation of any of the provisions under this Law set out in Section 22c, which constitutes an offence against provisions under this Law.

(b)Notwithstanding the provisions of sub-section (a), where a notice of intention to charge, or an administrative warning, has been served on a violator, or the violator has submitted a letter of undertaking and a bond, in respect of a violation as referred to in that sub-section, no indictment shall be filed against that person for the same act, unless new facts or evidence have come to light that justify doing so.

(c)Where the violator has paid a monetary sanction or deposited a bond and an indictment has been filed against that person in the circumstances referred to in sub-section (b), the amount paid or the bond shall be returned to the violator; an amount paid or a bond deposited by the violator as aforesaid, other than a bank guarantee, shall be returned with the addition of shekel interest from the date of payment or deposit until the date of return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.

[(Effective from 30.9.2026):] Where the violator has paid a monetary sanction or deposited a bond and an indictment has been filed against that person in the circumstances referred to in sub-section (b), the amount paid or the bond shall be returned to the violator; an amount paid or a bond deposited by the violator as aforesaid, other than a bank guarantee or a guarantee from another guarantor, shall be returned with the addition of shekel interest from the date of payment or deposit until the date of return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.

(d)Where an indictment has been filed against a dealer for a violation constituting an offence as referred to in sub-section (a), the Superintendent shall not take proceedings against that dealer under this Chapter in respect of the same violation.

Financial Penalty for Violation Under This Law and Under Another Law

22kc.

[Amendment: 2014-4]

For a single act constituting a violation of any of the provisions under this Law enumerated in Section 22c and a violation of a provision under another law, no more than one financial penalty shall be imposed.

Approval and Publication of Procedures

22kd.

[Amendment: 2014-4, 2023-3, 2024-2]

The Supervisor's procedures under Sections 22d(a) in fine, 22m, 22p and 22lf require the approval of the Attorney General or a Deputy Attorney General designated by the Attorney General for that purpose, and they shall be published on the Authority's website.

Delegation of Powers

22ke.

[Amendment: 2014-4, 2023-3]

The Supervisor may delegate the Supervisor's powers under this Chapter, except with respect to the determination of procedures under Sections 22d(a) in fine, 22m and 22p, to the Supervisor's deputy or to the Authority employee responsible for the subject of financial penalties.

Report to the Knesset — Temporary Provision

22kf.

[Amendment: 2014-4]

The Supervisor shall report to the Knesset Economics Committee, once a year, on the number of financial penalties imposed, their amounts, the violations in respect of which they were imposed, and the number of repeat violations committed out of all violations in the year preceding the date of the report; such a report shall be submitted for a period of five years from the end of one year from the date of commencement of the Consumer Protection (Amendment No. 39) Law, 5774–2014.

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