Consumer Protection Law Transaction Cancellation

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Consumer Protection Law: Contract Cancellation

Background to the Enactment of the Consumer Protection Law: Contract Cancellation – Prior to the Consumer Protection Law, consumer issues were addressed through the Sale of Goods Law, 1968.

The Sale of Goods Law aimed to define the parameters of transactions between a “seller” and a “buyer,” contract cancellation, and compensation in cases of breach.

However, it lacked specific provisions for consumer transactions, which inherently require separate consideration.

The general Sale of Goods Law did not account for the unique characteristics of consumer transactions.

For example, transactions not between equal parties, suffering from power imbalances favoring the business operator and disadvantaging the consumer.

Furthermore, technological advancements and globalization altered the nature of transactions (e.g., online orders) and necessitated specialized provisions.

This need was felt in the Knesset following public outcry. Consumers voiced strong (and angry) complaints about businesses abusing their superior bargaining power.