When Are You Required to Send Such a Letter?
Except in specific cases, you are not required to send a letter of warning; it is a common practice that has developed over the years. However, courts tend to view more favorably a plaintiff who has attempted to settle the dispute through alternative means. Conversely, they tend to view negatively a defendant who ignored a letter of warning or responded in a way that inflamed the situation.
However, in certain consumer violations, the law stipulates cases where a written demand is mandatory to receive compensation without proof of damage; a letter of warning serves as a written demand. Explanation:
The Consumer Protection Law specifies cases where a consumer may file a claim for compensation without proof of damage (“exemplary damages”), up to 10,000 NIS; and in cases of repeated violations, up to 50,000 NIS. (Amounts updated for 2023)
Compensation without proof of damage allows suing for the violation itself, even if it did not cause any damage. The legislator established this mechanism as a tool to deter businesses from committing “minor” consumer violations, considering that it would be difficult for consumers to prove that they suffered damage from the violation and therefore they would not sue.
According to Section 31a(b) of the Consumer Protection Law, there is a list of cases where it is not possible to claim compensation without proof of damage without first sending the violating business a written request for compensation. For our purposes, a “written request” is of course also a pre-litigation warning letter.
Important Note: You can demand compensation without sending a warning; however, it will not be “compensation without proof of damage.” In other words, you will not be “exempt” from proving that the consumer violation caused damage.