Want to Know More About Contract Cancellation?
What is the legal basis for contract cancellation? What are cancellation fees and how can they be avoided? In what circumstances can a contract be cancelled? Are there basic conditions for contract cancellation? Read more about contract cancellation in the article Contract Cancellation: The Complete Consumer Guide.
To Whom Does the Consumer Protection Law Not Apply?
According to Section 39 of the Law, it does not apply to services provided by any of the following:
A. A banking corporation as defined in the Banking (Customer Service) Law, 1981.
B. An insurer or insurance agent as defined in the Insurance Business Supervision Law, 1981.
C. A financial services provider as defined in the Financial Services Supervision (Regulated Financial Services) Law, 2016.
D. A payment services provider as defined in the Payment Services Law, 2019.
Does the Consumer Protection Law Apply to the State?
Yes. Section 42 of the Law stipulates that the State is subject to the same provisions as any business operator.
What is the Validity of an Agreement with a Business Operator Whose Provisions Contradict the Consumer Protection Law?
Section 36 of the Law states that its provisions supersede any waiver or agreement that contradicts them. However, if the agreement contains conditions that are more favorable than those prescribed by law, they prevail.
Does the Consumer Protection Law Apply to Second-Hand Sales?
If the transaction was conducted with a private individual and not a business operator – no; as mentioned, the law only applies to transactions between a business operator and a consumer. Section 1 of the Law defines a business operator as “anyone who sells property or provides services through an occupation, including a manufacturer“. In the case of transactions between private individuals (e.g., purchasing a used car), the regular legal frameworks applicable to the case should be applied. How do you know if it’s a business operator or not? Simple – did they issue an invoice with a business operator number registered with the tax authorities?
Statute of Limitations for Consumer Claims
The law does not specify a statute of limitations, therefore the limitation period for a civil claim under it will be as stipulated in the Limitations Law – 7 years. However, there are sometimes cases where the limitation period is different (and usually longer).
To Whom Should a Report Be Made in Case of a Consumer Violation?
In 2006, Amendment No. 20 to the Law entered into force, establishing the Authority for Consumer Protection and Fair Trading. According to the section, the Authority will appoint an authorized representative with a range of powers: to supervise the implementation and/or violation of the law’s provisions; to investigate suspects of offenses under the law and bring them to criminal trial; to take administrative enforcement actions against violators; to handle complaints or consumer harm; to conduct and initiate surveys and research on consumer issues; and more.
The Consumer’s Right to Compensation Without Proof of Damage (“Exemplary Damages”)
Amendment No. 21 to the Consumer Protection Law sets out cases where the court may order a business operator to pay compensation without proof of damage up to NIS 10,000 for each violation (hereinafter: “exemplary damages”). However, there are cases where the court may award compensation without proof of damage up to NIS 50,000: repeated violation, ongoing violation, or violation committed under aggravating circumstances (Section 31a(c) of the Consumer Protection Law, 1981).
Furthermore, Section 31a(f) of the Law states that a consumer is not limited to the aforementioned remedy and is entitled to claim any other remedy for the same violation.
Section 31a(b) of the Law stipulates that a consumer may file a claim for compensation without proof of damage, only if they have submitted a written notice to the business operator containing the relevant demand.
For example – a case of violation of the law regarding the return of goods: the consumer wanted to return goods in accordance with the law and the business operator’s policy, and the business operator refused. The consumer will not be entitled to file a claim for compensation without proof of damage unless the consumer’s request is supported by documentation that the aforementioned request was submitted in writing to the business operator.
However, failure to submit a written request is only relevant to a claim for compensation without proof of damage. A consumer who has not submitted a written request regarding the business operator’s violation can still file a claim for other compensation. For example, a claim for damages for breach of contract or damages for non-pecuniary harm (such as distress).
How to Obtain Compensation Without Proof of Damage from a Business Operator?
As mentioned, the provisions of Section 31a of the Law require the consumer to send a written request to the business operator. If the written request was effective and the business operator compensated you – great. If the business operator ignored the request, agreed to inadequate compensation, or refused to compensate – a small claims suit can be filed. Over 30% of the defendants in the Small Claims Court are business operators who have wronged consumers. The main reasons consumers prefer to file a small claims suit (and not a “regular” suit) are: (1) it is a faster, cheaper, and more efficient procedure than a “regular” civil procedure; (2) in most cases, the amount of the claim does not exceed the amount limit in the Small Claims Court; therefore, consumers prefer to conduct the proceedings in a “smaller” and more user-friendly framework.
Locating the Defendant’s Details by Company and/or Identity Card Number
How do you locate the defendant’s identity card? How do you locate the defendant’s details by the defendant’s address? How do you locate company details? Read more in the article on Locating Company Details and/or Locating Defendant Details.
