Defective Product: A Comprehensive Overview of Warranty and Post-Sale Service

Manufacturer’s Liability After Purchase

A defective product is one with a single general malfunction or recurring faults. The manufacturer is responsible for repairing, free of charge, any defect in products they manufactured and the consumer purchased. Where relevant, the manufacturer is responsible for installation/instruction or providing replacement parts. For cases where the manufacturer may charge for repairs, see Charging for Repairs.

These obligations apply within the warranty period. The basic legally mandated warranty period is one year from the date of delivery to the consumer. However, if the manufacturer requires installation or instruction, the warranty period begins upon completion of installation or instruction, whichever is later (Regulation 5(a) Regulations).

Two Important Notes: Some products have longer warranties for replacement parts only. Extended warranties (sometimes paid) may also apply.

Note that a defective product may also suffer from “non-conformity”; i.e., a discrepancy between the ordered and received product. Non-conformity claims are subject to different or additional provisions that supplement and broaden the provisions regarding post-sale warranty and service. For an article on defective or different products under a claim of non-conformity.

Products Covered by Manufacturer’s Warranty

The manufacturer’s warranty applies to new electrical, electronic, and gas appliances, including mechanical mechanisms in furniture, provided they were purchased for more than NIS 150 (Regulation 1 of the Regulations).

Providing a Warranty Certificate or Sticker – Failure to Do So Can Result in Compensation Without Proof of Damage

A warranty certificate details the obligations between the consumer and the business regarding product quality and post-sale service (Regulation 1 of the Regulations). Again, a warranty certificate does not apply to all products; only to products covered by the regulations.

Manufacturers and/or businesses selling goods on their behalf are obligated to provide a warranty certificate in Hebrew. If the consumer requests, a warranty certificate in Arabic must also be provided (Regulation 12 of the Regulations). The manufacturer or the business selling goods on their behalf must allow the consumer to review the warranty certificate before the transaction (Regulation 13 of the Regulations).

What Must Appear on a Warranty Certificate?

A warranty certificate must include the following details (Regulation 14(a) of the Regulations):

1. Product name, description, and serial number (if applicable)
2. Model name and year of manufacture
3. Purchase date
4. Details of the business through which the purchase was made
5. Full manufacturer details: name, address, ID number/corporation number, trade name, telephone and fax number, and any other detail enabling the consumer to contact the manufacturer for service
6. Addresses and telephone numbers of all manufacturer service centers
7. All post-sale manufacturer obligations under Section B of the Regulations: repairs – scope, method, and location; supply of spare parts; installation obligation for relevant products; commencement date of manufacturer’s obligations; method of performing repairs; payment terms; and technician arrival times.
8. Exceptions to manufacturer obligations (i.e., in which cases one or more manufacturer obligations do not apply; for example, if the consumer caused the damage, the manufacturer is not responsible for repairs).

Note! The manufacturer may not waive consumer rights under any law. However, the manufacturer may waive manufacturer rights specified in the regulations if the waiver benefits the consumer. For example, if a manufacturer specifies a basic warranty period shorter than the one year specified by law, this condition is void, and the warranty will be valid for one year from the relevant date. However, if a manufacturer sets a longer warranty period, that period will apply (Regulation 14(c) and 21 of the Regulations).

If a business fails to provide a warranty certificate or sticker (as applicable) to a consumer, the consumer is entitled to file a claim for compensation without proof of damage. To file a claim, the consumer must send a written request to the business to rectify the omission (Sections 31a(a)(7)-(8) of the Consumer Protection Law, 5741-1981).

Does the Obligation for Warranty and Service Apply Only to the Manufacturer?

No. For imported products covered by the regulations, the obligation for warranty and service applies to both the manufacturer and the importer (Section 18 of the Regulations). Unable to locate the manufacturer or importer? If the products were sold for more than NIS 400, the seller bears the full manufacturer’s responsibility under the regulations. For example: performing repairs, providing instruction, installation, etc.

Supply of Spare Parts for a Defective Product: Warranty Periods by Product Type

The manufacturer is responsible for supplying the consumer with spare parts, upon the consumer’s request. The consumer’s request is a condition for supply; this will not be done at the manufacturer’s “discretion” (Regulation 3 of the Regulations). Important! The manufacturer’s warranty only applies to the products specified in the regulations.

Summary of Product Types and Warranty Periods for Spare Parts:

Can the Manufacturer Demand Payment for Repairs, Transportation, or Replacement of Defective Products?

In some cases, yes. The starting point is that the manufacturer is responsible for repairing any defect in products under the warranty period, free of charge. The basic period stipulated by law is one year from the date of delivery or installation/transport, whichever is later. However, an extended warranty period may be agreed upon. And sometimes the law itself stipulates a longer warranty period.

However, there are situations in which the manufacturer may demand payment for repairs, transport of the products, or their replacement, even within the warranty period. These are situations where the manufacturer can prove that the defect resulted from one of the following (Regulation 8 of the Regulations):

1. Force Majeure occurring after the goods were delivered to the consumer. Note: The Supreme Court has restricted the “force majeure” claim such that sometimes even war will not constitute “force majeure” preventing performance of the contract;
2. The consumer acted with malice or negligence, including using the products contrary to the instructions; provided that the instructions are reasonable in the circumstances;
3. The products were repaired by someone not authorized by the manufacturer, in circumstances not stemming from a breach of the manufacturer’s obligations. For example: the consumer asked another person to repair the product before contacting the manufacturer to order a technician. The repair was then performed by an unauthorized person and without the manufacturer breaching their obligations.

Is the Manufacturer Obligated to Establish Service Centers for the Delivery of Products for Repair?

Yes. A manufacturer must establish service centers in at least four cities: Haifa, Tel Aviv, Jerusalem, and Beersheba. The location where the consumer purchased the manufacturer’s products will also serve as a service center for dealing with a defective product, unless there is another manufacturer service center within a distance not exceeding 15 km (Regulation 9 of the Regulations).

What is the Manufacturer’s Obligation Regarding the Manner of Performing Repairs Under the Warranty Period?

During the warranty period, a manufacturer to whom a defective product was submitted for repair must return the product to its pre-defect condition. If the repair involved replacing parts, the manufacturer must install new, original replacement parts (Regulation 6 of the Regulations).

A manufacturer who fails to comply with these instructions has two options at their discretion:

1. Supply the consumer with entirely new products of identical type and quality and of equal value; or –
2. Refund the consumer the amount paid for the products.

What is the Repair Time for a Defective Product?

Manufacturers may not perform repairs according to their own schedules, but according to the times stipulated in the regulations. For your convenience, we have summarized the product types and repair times under the manufacturer’s warranty:

• Refrigerator or freezer: One business day** 
• Gas or electric cooktop: 2 business days**
• Washing machine, air conditioner, apartment heating oven, cooking and baking oven, TV larger than 20 inches, dishwasher, dryer: 3 business days**
• Other products: Within one week of the call; or – in the case of delivery to a service center – within 10 days of delivery, at the latest.

Important Note! If the manufacturer/importer cannot be located and the products were purchased for more than NIS 400, the business that sold the products to the consumer will be responsible for their transport, replacement, or repair (Regulation 19 of the Regulations). In this case, the business that sold the product is responsible for performing the repairs within three weeks from the repair call or from the date of delivery of the products for repair, at the latest (Regulation 10(c) of the Regulations).

Can a Business Offer Long-Term Service (After the Basic Warranty Expires) for a Fee?

Yes, provided that the business does so in a written contract including the following details:

1. Product description;
2. Full business details (name, address, ID number/corporation number, trade name, telephone and fax number, and any other detail enabling the consumer to contact the business for service);
3. Addresses and telephone numbers of the business’s service centers;
4. Service period;
5. Business obligations to the consumer;
6. List of situations in which the business will not need to fulfill its obligations, with the list prominently displayed (not in “small print”);
7. Methods for canceling the contract.

A business that undertakes or offers long-term service at the time of sale will provide the consumer with these details as part of the sales transaction. A consumer who has already committed to long-term service at the time of sale may withdraw only until the end of the basic warranty period (Regulation 16 of the Regulations).

Does Manufacturer’s Warranty Apply to Gifts?

Yes. All transferable rights under the regulations will be transferred from the giver to the recipient (Regulation 17 of the Regulations). Therefore, a person who received a defective product as a gift can have it repaired just as the gift-giver would have been entitled to.

The Manufacturer Did Not Perform Repairs or Provide Spare Parts During the Warranty Period? Compensation Can Be Claimed Without Proof of Damage

Section 31a(a)(8) of the Consumer Protection Law, 5741-1981 stipulates that in such cases, the consumer will be entitled to claim compensation without proof of damage up to NIS 10,000, if all the following conditions are met:

1. The consumer sent the manufacturer/business a written request (including by electronic means) to repair a defect in a product they purchased or to supply spare parts for repairing a product;
2. The manufacturer/business (as applicable) did not do one of the options available to them (at their discretion):

• Repaired the defect free of charge; or –
• Supplied the consumer with a new product of the same type and value; or –
• Refunded the consumer the amount paid for the product.

Note! Failure to submit a written request does not prevent a consumer from filing a claim altogether, only from filing a claim for compensation without proof of damage. A claim for other compensation can still be filed – for example, a contractual claim or a claim for compensation with proof of damage. Also, there are cases where the court may award the plaintiff compensation without proof of damage up to NIS 50,000.

When Can a Claim for Compensation Without Proof of Damage Be Filed in Relation to a Defective Product?

According to Section 31a(a) of the Consumer Protection Law, 5741-1981, a claim for compensation without proof of damage can be filed – after sending a written request to the manufacturer/business (as applicable) – in the following cases:

1. The manufacturer/importer/business did not provide a warranty certificate/sticker despite being requested;
2. The manufacturer/importer/business who was requested to perform a repair on the product did not do one of the following:

• Repaired the defect free of charge; or –
• Supplied the consumer with a new product of the same type and value; or –
• Refunded the consumer the amount paid for the product.