Israel's “Shopping Basket” Campaign Faces New Legal and Consumer Criticism
The legal fight over “Israel’s Basket,” the Economy Ministry initiative led by Economy Minister Nir Barkat to curb supermarket price increases, is continuing at the High Court of Justice. About two months after the consumer groups Emun HaTzibur and Success filed a petition against the plan, the state submitted its response on Wednesday night. The groups say key issues raised in the petition remain unanswered, especially concerns that the government campaign misled shoppers by presenting Carrefour as offering the “cheapest basket in Israel.”
Barkat launched the project in early January with a basket of 100 of Israel’s best-selling products, to be sold at the lowest price by a single food chain chosen in a tender. The basket included food and toiletries, but excluded tobacco, alcohol and agricultural produce, and the ministry said it could save an average family about NIS 2,000 a year. In the end, Carrefour was the only chain to bid, after other qualifying chains, including Shufersal, Rami Levy, Victor, Osher Ad, Yohananoff, Neto Hashisachon and Machsanei Hashuk, stayed out of the race. Carrefour won after offering prices about 30% below the market average for the 100 items.
The plan later drew criticism because Barkat initially described it as applying across the winning chain, but the tender actually required fixed prices in only about 40 branches. Carrefour expanded the offer to 51 of its 151 stores. The ministry said the tender required at least 40 branches nationwide and that the basket would also be available online nationwide. Critics also objected to the purchase limit of two units per product, and to Carrefour’s simultaneous rebranding of 14 city stores as “City La Marché,” which raised concerns about consumer confusion.
In their response, the groups said the state still had not adequately addressed claims that the promise of “30% below the market” is misleading. They said their figures show an average discount of 22%, with about one-fifth of the products not discounted at all. They also cited a survey in which 31% of shoppers reported missing basket items, and said 29% of consumers believed the program applies to all Carrefour branches. They argued that the slogan, “The Ministry of Economy determines, Carrefour, the cheapest basket in Israel,” is problematic because it rests on a relatively narrow product list.
The state says the basket’s product volume is estimated at NIS 5.5 billion, but the groups say that is only about 5% to 6% of average household spending on goods sold in retail chains. Success lawyer Elad Mann said, “The state’s response is full of omissions and legal flaws, and ignores a long list of defects that keep piling up.” Ronen Regev Kabir of Emun HaTzibur called it “a very sad event for the protection of the Israeli consumer.” The Economy Ministry declined to comment.
