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Israel Tightens Consumer Protections Amid Rising Concerns Over False Advertising

In a sweeping move that could reshape the way Israelis shop, the Consumer Protection Authority (CPA) announced a new set of regulations aimed at cracking down on misleading price claims, deceptive packaging, and other consumer‑hurtful practices. The announcement, reported by The Jerusalem Post in a detailed consumer‑rights column, follows a series of high‑profile cases that exposed how retailers have, in some instances, taken advantage of the average shopper’s lack of price‑comparing tools.

A New “Shop With Confidence” Campaign

At the heart of the CPA’s initiative is the “Shop With Confidence” campaign, a public‑awareness drive that seeks to empower shoppers to spot red flags before they make a purchase. The campaign will roll out educational materials in Hebrew, Arabic, and English—including short videos, printable checklists, and a dedicated website that provides a simple “price‑check” tool. The CPA’s press release on the website (consumer.org.il) explains that the tool will allow consumers to compare a product’s current price with its advertised discount by cross‑referencing the official price database maintained by the Ministry of Economy.

Key Regulatory Changes

The new regulations, which come into effect on June 1, 2024, are anchored in the Consumer Protection Law of 2001 but also incorporate several amendments that the CPA introduced earlier this year. The most significant changes include:

1. Mandatory Disclosure of Original Prices
   Retailers must now display the original price of a discounted item in a bold, legible font next to the sale price. This change, the CPA said, is intended to prevent “price‑gating” tactics where a product’s list price is inflated in order to make a discount look more dramatic.

2. Standardized “Price‑Tag” Regulations
   A new set of guidelines for price tags—covering color, font size, and placement—was released. The CPA has published a PDF of these guidelines on its site (link: consumer.org.il/price-tag-guidelines.pdf). Retailers must now ensure that their price tags meet these minimum standards, or face a fine of up to NIS 5,000 per violation.

3. Clearer Rules on “Bogo” and “Buy‑One‑Get‑One” Offers
   The CPA clarified that “buy‑one‑get‑one” promotions must be clearly stated in the same unit of measure as the item sold. In other words, a “buy one get one free” for a 500‑gram pack of cheese cannot be applied to a 250‑gram pack. This change responds to consumer complaints that supermarkets had been offering “free” items that were only half the size of the regular package.

4. Consumer‑Friendly Return Policies
   Retailers selling electronics and high‑ticket items must now provide a minimum 30‑day return window, with a clearly printed statement on the receipt. The policy is an expansion of the existing 15‑day rule, and aims to give shoppers a “reasonable time to test” high‑priced goods before deciding to keep them.

Enforcement: A Growing Toolbox

To enforce these new rules, the CPA will now have an expanded enforcement toolkit that includes:

• Digital Monitoring
  The CPA will use web‑scraping software to scan online retailer sites for price‑tag compliance. The tools are being tested on a pilot run at major e‑commerce platforms like KSP, Yad2, and Amazon Israel.

• Consumer Complaints Hotline
  The hotline will double the number of staff to handle the expected surge in complaints, especially in the first six months. Calls are being monitored in real time, and a data‑analysis team will generate a quarterly report on common violations.

• Penalties and Prosecution
  The CPA will work closely with the Ministry of Justice to prosecute major offenders. In the event of repeated non‑compliance, the CPA can recommend that the Ministry suspend a retailer’s license to operate.

The Legal Rationale and Consumer Impact

A CPA spokesperson, Sarah Nasser, explained that the regulatory overhaul was prompted by a growing body of evidence showing that “improper labeling and deceptive advertising can erode consumer confidence and lead to financial loss.” The authority cites a 2023 audit that found that 18% of surveyed consumers in Israel reported “having been misled by price claims.” “We are committed to restoring trust in our retail market,” Nasser said.

The changes have sparked debate among retailers, many of whom fear increased administrative burden. The Israel Retailers Association (IRA) has issued a statement that acknowledges the need for clearer consumer protections but calls for a phased implementation. “The proposed regulations could impose significant costs on small businesses,” the IRA said in a letter to the CPA. “We urge the CPA to consider a transition period for compliance.”

On the other hand, consumer advocacy groups have lauded the initiative. “This is a win for the average Israeli consumer who has to navigate a complex retail environment with little guidance,” said Maya Rosen, director of the Israeli Consumer Rights Coalition. Rosen pointed to a study by the Coalition that found that 62% of respondents had experienced at least one price‑related discrepancy in the last year.

International Comparisons

The CPA’s new guidelines are consistent with similar moves in other jurisdictions. The United States Federal Trade Commission (FTC) recently announced a crackdown on “bogus” discount claims in grocery stores, while the European Union adopted a “price transparency directive” that requires EU member states to standardize price displays. By aligning its regulations with these international standards, Israel positions itself as a leader in consumer protection.

What Consumers Need to Do

• Check the Official Price Database
  The CPA’s website hosts an up‑to‑date list of official prices for major consumer goods. Consumers can cross‑reference the sale price with the database before making a purchase.

• Use the “Shop With Confidence” Tool
  The tool, which can be accessed at consumer.org.il/shop-with-confidence, lets shoppers upload a photo of a price tag and receive an instant audit of compliance.

• File a Complaint if Needed
  If a consumer believes a retailer is violating the new rules, they can call the CPA hotline or submit an online complaint. The CPA will provide a reference number and will keep the consumer updated on the progress of the investigation.

Conclusion

The CPA’s new regulations signal a decisive step toward a more transparent and consumer‑friendly market in Israel. By mandating clearer price displays, tightening return policies, and expanding enforcement mechanisms, the authority aims to protect shoppers from misleading practices while encouraging fair competition among retailers. Whether the changes will be smoothly implemented or spark prolonged debate among business owners remains to be seen, but the overarching goal is clear: to give Israeli consumers the confidence and tools they need to make informed purchasing decisions.