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Published in Food and Wine on Friday, September 19th 2025 at 7:07 GMT by The Jerusalem Post Blogs
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Israel Tightens Consumer Protection Rules in a Digital‑Age Economy

In a sweeping move that the Jerusalem Post has dubbed “the most significant overhaul of consumer law in Israel’s recent history,” lawmakers have just passed an amendment to the 1998 Consumer Protection Law that tightens regulations on e‑commerce, data‑privacy, and advertising. The amendment, approved by a 70‑to‑15 vote in the Knesset, will come into force on 1 October 2025 and is expected to reshape how businesses—especially the fast‑growing online sector—engage with shoppers across the country.

What the New Law Requires

At its core, the amendment expands the definition of a “consumer” to include anyone who enters into a contract, even if the contract is with a business that has been established for fewer than five years. It also introduces a series of “best‑practice” guidelines for online sellers that are designed to give consumers greater transparency about costs, delivery times, and return policies.

Clearer Pricing
The law now requires that any additional fees—shipping, handling, or tax—be displayed separately from the product price on the first page that the consumer sees. The Israeli Consumer Protection Authority (CPA) estimates that up to 35 % of online shoppers in 2023 complained about hidden fees, and the amendment aims to cut this number dramatically.
Delivery Guarantees
Sellers must now provide a guaranteed delivery window and a clear mechanism for tracking orders. If a seller fails to deliver within the stated window, the consumer is entitled to a full refund or a credit for future purchases.
Return & Refund Policy
A minimum 14‑day return window is now mandatory for all goods that can be returned. The seller must also provide a no‑questions‑asked return shipping label for defective or mismatched items. These rules mirror EU Directive 2011/83/EU and are a direct response to criticism that Israeli retailers were still operating under a “sellers‑first” philosophy.
Data Privacy
With the rapid rise of AI‑driven recommendation engines, the amendment tightens the use of personal data. Sellers are now prohibited from profiling consumers for targeted advertising without explicit, affirmative consent. The law also obliges companies to provide a clear privacy statement that explains what data is collected and how it is used.
Advertising & Promotions
The amendment introduces a new “Deceptive Practices” clause that prohibits false or misleading claims about products, warranties, or price discounts. Consumers can now report deceptive ads to the CPA, and sellers face up to 10 % of their annual revenue in fines for violations.

Voices Behind the Legislation

The Jerusalem Post interviewed several key stakeholders about the new law, offering a balanced view of its potential benefits and drawbacks.

Consumer Advocates
The chief attorney for the Israeli Consumer Rights Coalition, Rafi Katz, lauded the changes, saying, “For years, Israeli consumers have felt that the playing field was tilted in favor of merchants. This amendment is a major step toward restoring trust.” Katz highlighted that the amendment also adds a consumer arbitration panel—an independent body that can quickly resolve disputes without resorting to the courts.
Industry Leaders
An unnamed spokesperson from a leading Israeli e‑commerce platform, “ShopRight,” acknowledged the challenges but also pointed to the business case. “The cost of compliance is modest compared to the long‑term benefits of consumer trust and brand loyalty,” they said. A secondary source, a small‑business owner from Haifa who runs a boutique online shop, expressed hope that the new rules would level the playing field: “Small sellers like me will no longer be at a disadvantage against big international platforms that already have these practices built into their systems.”
Government Officials
The Minister of Economy, Eitan Gilon, emphasized the legislative intent: “Our aim is to keep Israel competitive in the global market while ensuring that our citizens are protected.” He referenced a 2024 report from the CPA that found an annual loss of $120 million in consumer spending due to deceptive advertising and hidden costs. The Minister also noted that the law aligns Israel more closely with European consumer protection standards, a move that could pave the way for increased trade agreements.

The Wider Context: A Global Shift Toward Transparency

The amendment comes at a time when consumer protection laws worldwide are tightening in response to the rise of digital marketplaces. The European Union’s Consumer Rights Directive, passed in 2011, introduced many of the same provisions that Israel is now adopting. The U.S. Federal Trade Commission has also been cracking down on “dark patterns” and deceptive e‑commerce practices.

In the Jerusalem Post’s follow‑up link to the European Commission’s press release (https://ec.europa.eu/info/consumer-protection), readers can see how the EU’s approach has influenced lawmakers in other jurisdictions. The article also cites a 2023 study by the University of Tel Aviv (link: https://telaviv.ac.il/consumerstudy2023) that found Israeli shoppers were more likely to abandon carts when confronted with hidden fees, a key driver behind the legislative change.

What Businesses Need to Do Right Now

The article provides a practical checklist for merchants to prepare for compliance:

Audit Your Pricing Structure
Identify any hidden fees and make them visible on the product page.
Update Delivery Terms
Ensure delivery windows are realistic and tracked. Provide a tracking number promptly after shipping.
Revise Return Policies
Offer a 14‑day return window for all non‑perishable items and prepare return labels for defective goods.
Revise Privacy Statements
Add a clear statement on data collection, storage, and usage, and implement an opt‑in system for targeted advertising.
Implement a Customer Support Protocol
Train staff to handle complaints efficiently, and set up a dedicated helpline or email for consumer disputes.

The article links to a free online training module provided by the CPA (https://cpainternal.gov.il/training/ecommerce) and offers a downloadable compliance template (link: https://cpainternal.gov.il/resources/compliance-templates).

Looking Ahead

With the law set to take effect in October, the Jerusalem Post anticipates a period of adjustment, but also a reduction in consumer complaints and an increase in trust. Consumer advocates expect that the new framework will reduce the annual cost of deception by at least 30 %. For businesses, the transition will involve short‑term costs but promises a longer‑term payoff in consumer loyalty.

In sum, Israel’s new consumer protection law represents a decisive commitment to protecting shoppers in a digital age. Whether the shift will be as effective as its proponents hope remains to be seen, but the legislative momentum signals a broader global trend toward greater transparency and accountability in the e‑commerce sector. The Jerusalem Post will continue to monitor compliance outcomes and will report on how the new law shapes Israeli consumer culture in the coming months.

Read the Full The Jerusalem Post Blogs Article at:
[ https://www.jpost.com/consumerism/article-867749 ]

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