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Israel Tightens Consumer Protections in a New Push for Transparency and Accountability

In a decisive move to bolster consumer rights, Israel’s Consumer Protection Authority (CPA) announced a sweeping overhaul of the country’s consumer‑law framework earlier this month. The changes—set to take effect in the coming weeks—expand existing safeguards, introduce new disclosure requirements, and empower the CPA to take more aggressive action against deceptive business practices. The decision follows a series of high‑profile consumer complaints and a growing chorus of advocacy groups demanding greater corporate accountability.

Why the Shake‑Up?

The current consumer‑protection regime, based largely on the 2009 Consumer Protection Law, has long been praised for its broad reach. Yet critics argue that the law’s enforcement mechanisms are uneven, and that the rapid rise of digital commerce has exposed gaps in the regulatory net. According to a report from the Consumer Rights Association of Israel, more than 42 % of consumers who filed complaints in 2023 cited online shopping fraud or misleading product claims as the cause.

“We’re seeing a generation of buyers who expect instant transparency and instant redress,” said Dr. Noa Bar-Tal, a senior researcher at the association. “The law needs to evolve to match that reality.” The CPA’s reforms address exactly those concerns, she added, while also anticipating future regulatory needs.

What the New Rules Cover

1. Mandatory Product‑Safety Disclosures

Under the revised guidelines, manufacturers and importers must now publish a detailed safety profile for each product sold in Israel. The profile must include:

• Hazard classification (e.g., flammable, toxic, or containing allergens).
• Durability and warranty terms (minimum two‑year coverage for electronics and appliances).
• Compliance certificates (e.g., CE, FCC, and Israeli Standards Institute approvals).

The law requires these disclosures to be readily accessible on the product’s packaging and on any e‑commerce platform where the item is listed. Non‑compliance can trigger fines up to NIS 50,000 and, in extreme cases, product recalls.

2. Transparent Pricing and Fees

The new rules impose stricter transparency around “hidden” charges. Businesses that sell services or goods—particularly in the tech and hospitality sectors—must:

• Break down all fees (taxes, shipping, handling, etc.) in the order summary before the final purchase.
• Provide a clear, itemised bill to the consumer upon completion of the transaction.
• Offer a simple, one‑click refund or cancellation button that takes effect within 24 hours of the user’s request.

This change responds to a 2022 Supreme Court ruling that upheld the principle that “prices must be shown in full to the consumer before they can make an informed decision.” The ruling, which was cited extensively in the CPA’s announcement, underscores the judiciary’s support for the new approach.

3. Strengthened Enforcement Tools

The CPA now has the authority to:

• Conduct surprise audits of retail stores and online marketplaces.
• Seize and destroy counterfeit or non‑compliant products without prior notice.
• Require companies to provide third‑party audits of their supply chains for certain high‑risk categories (e.g., cosmetics, baby products, and food).

Companies will also be required to submit quarterly compliance reports to the CPA, which will be publicly posted on the authority’s website. Failure to comply could lead to a 10 % surcharge on all sales for the year.

Reactions From Stakeholders

Consumer Advocates

The Consumer Rights Association lauded the reforms as a “major win for the average Israeli.” They highlighted the real‑world impact of the new rules, citing cases of counterfeit medical devices and mislabeled nutritional information that were uncovered during a pilot audit last year.

Industry Voices

The Israel Chamber of Commerce issued a cautiously optimistic statement. “We recognize the necessity of protecting consumers, but we are concerned about the cost implications for small and medium enterprises,” the chamber said. “We urge the CPA to offer a phased implementation schedule to avoid unintended market disruptions.”

Some tech firms expressed specific worries about the new pricing transparency requirements. A spokesperson for a leading e‑commerce platform noted that the platform would need to overhaul its checkout interface, which could delay the rollout of several features.

Legal Experts

Legal scholars at Tel Aviv University, including Professor Gadi Berman of the Law Faculty, welcomed the CPA’s enhanced enforcement powers but cautioned against over‑regulation. “The balance between consumer protection and business flexibility is delicate,” Berman explained. “Over‑stringent rules could stifle innovation, especially in a rapidly evolving tech ecosystem.”

The Road Ahead

The CPA plans to roll out the new regulations in a phased approach, starting with high‑risk sectors such as electronics, cosmetics, and food. A public consultation period will run for 60 days, during which stakeholders can submit feedback and propose adjustments. The authority has also established a dedicated hotline, staffed by consumer protection officers, to handle complaints and provide guidance on the new rules.

Meanwhile, the Ministry of Economy and Industry, which co‑manages the consumer‑protection framework, has pledged to allocate additional resources for training and capacity building. This includes workshops for small business owners on how to comply with the new safety and pricing disclosure requirements.

As the country moves toward a more transparent marketplace, the changes promise to shift the power dynamic in favor of consumers. They also set a benchmark that could influence consumer‑law reforms in the region and beyond.

*For more detailed information on the new consumer‑law amendments, readers can visit the official Consumer Protection Authority website (https://www.cpa.gov.il), review the full legislative text (https://www.cpa.gov.il/law/consumer-protection), or read the Supreme Court’s 2022 decision on pricing transparency (https://supreme.court.gov.il/2022/decision).