Compensation – Money on the Floor – 5 Rights You Must Know

Ignorance of the law can lead to financial losses. It is time to understand your rights.

Despite its relatively young age, the State of Israel boasts an impressive number of over 1,000 active laws (!) This is a daunting number, not including the tens or hundreds of clauses within each law; each clause having significant legal ramifications.

While it is common knowledge that ignorance of the law is not an excuse, few are aware of the equally crucial fact that such ignorance leads to significant financial losses.

The reason is clear: when citizens are unaware of their rights, they do not insist on their enforcement. Sometimes, even business owners are unaware of their rights or obligations toward their clients. As a result, the economy and society as a whole do not thrive. Because not all players are aware of the rules; and as in any board game, this makes playing difficult and winning even harder.

The disparity between the extent and quality of rights and their enforcement is evident in the sheer number of lawyers in Israel. For over a decade, Israel has held the world record for the highest number of lawyers per capita; approximately one lawyer for every 130 people. This further emphasizes the importance of understanding your rights (and obligations): by knowing the expected standard of conduct, you can hold others accountable, reducing the burden on lawyers from handling basic issues.

This article will present 5 rights frequently encountered by the average consumer. Knowing these rights will prevent problems or, at the very least, allow you to seek recourse from those who violate them. You might be surprised by the potential compensation for relatively simple mistakes.

Price Discrepancy at Checkout? Up to ₪10,000 in Compensation Without Proof of Damage

The Consumer Protection Law mandates the display of an “inclusive price”. Certain businesses cannot display prices as “₪100 + VAT” or omit additional charges. Beyond the product price, the law requires certain businesses to clearly display the price in Israeli currency. If there’s a price discrepancy between the product and the checkout, and the business refused your request to pay the displayed price, you are entitled to compensation of up to ₪10,000. Additionally, businesses violating the inclusive price requirement face significant administrative and criminal penalties.

Note! The obligation to display an inclusive price does not apply to all businesses. Furthermore, there is a difference between physical products and services. For more information on price discrepancies.

Flight Disruption? Compensation up to ₪10,590 Without Proof of Damage

In 2012, the Civil Aviation Services Law, known as the “Tivi Law” (after its initiator, MK Ahmad Tibi), came into effect. The law stipulates several instances where passengers are automatically entitled to compensation and benefits from airlines whose conduct was deficient; for example: flight delays, cancellations, early departures, etc. If the airline fails to provide compensation and benefits, the court may award the affected passenger compensation of up to ₪10,590 (as of January 2023).

Note! There are specific cases where the airline is not obligated to provide benefits and compensation, even if there is a flight disruption. Furthermore, there are fundamental considerations to assess the chances of receiving compensation. For more information on flight disruptions.

Spam? Up to ₪1,000 per Message

In 2008, Amendment No. 40 to the Communications (Broadcasting and Services) Law, known as the “Spam Law,” came into effect. This amendment prohibits sending unsolicited advertisements without the recipient’s consent or after they have indicated their refusal. If you did not consent beforehand or have withdrawn your consent and still received advertisements, you are entitled to compensation of up to ₪1,000 for each infringing message; without proof of damage.

Note! Not every advertisement will be considered spam even if you did not consent. For example, most campaign advertisements or certain donation requests do not qualify for compensation. To determine your chances of receiving compensation and whether to pursue legal action, we’ve compiled the necessary information to answer three simple questions. For more information on the Spam Law.

Technician Late? Up to ₪600 Without Proof of Damage

In 2008, an amendment to the Consumer Protection Law, known as the “Technicians Law,” was passed. This amendment prohibits technicians from scheduling arrival times exceeding two hours. Regardless of whether you scheduled a visit within two hours or a longer timeframe, a technician’s arrival after more than two hours will result in compensation without proof of damage: a delay of 2-3 hours results in ₪300 compensation; and a delay of over 3 hours results in ₪600 compensation.

Note! Despite its name, the law does not only apply to technicians. Furthermore, it only applies to a limited list of businesses; and sometimes benefits can be granted instead of compensation. For more information on the Technicians Law.

Train Delay? Free Tickets

In 2013, the Ministry of Transport issued a compensation procedure for train delays. According to this procedure, a delay of 30 minutes or more in reaching the destination entitles a passenger to a free ticket on the same route. A delay of one hour or more entitles the passenger to two free tickets on the same route.

Note! There are specific ways to receive compensation. It is also important to understand what happens when you want to claim more significant compensation than a free ticket. For more information on train delays.

How to Receive Compensation?

The answer depends on the type of compensation sought: compensation without proof of damage or with proof of damage.

For **compensation without proof of damage**, you must send a pre-litigation notice (in writing) to the business. This requirement, stipulated in Section 31a(b) of the Consumer Protection Law, aims to reduce the burden on courts and lower costs for all involved. If the business does not respond or an agreement is not reached, you can file a lawsuit and inform the court that you sent a pre-litigation notice.

For **regular compensation** (with proof of damage), you can file a lawsuit immediately (without a notice).

Once you decide on the type of compensation, the location for filing the lawsuit depends on the amount claimed. For small claims (up to ₪37,700, as of January 2024), you can file a small claims lawsuit. With Dino’s system, you can do this independently.