Israeli Consumer Law: Understanding Your Rights for Returns and Cancellations
Israeli law mandates that businesses must clearly state their return and cancellation policies, overriding any "no returns" signs. If a store displays a "no returns" notice, it must also specify the exceptions allowed by law. Failure to display a return policy creates a presumption that the store allows returns within seven days of a customer being refused. The Consumer Protection Regulations (Cancellation of Transactions) apply to goods priced over 50 shekels.
Specific return periods vary by product. Furniture, home and garden equipment, electronics, water purifiers, and watches can be canceled within 14 days of receipt, with unpacking not considered use, but connecting to utilities does. Clothing and footwear have a shorter window: two non-rest days from purchase, provided the price tag remains attached. Jewelry up to 3,000 shekels also falls under this two-day rule, while more expensive jewelry is excluded, except for watches. Services like classes, courses, and hospitality have a 14-day cancellation window from the agreement date, provided cancellation occurs at least 14 non-rest days before service commencement. Cosmetics, gyms, discount clubs, matchmaking, mobile, internet, landline, and TV services can be canceled within 14 days of the transaction or receiving the written contract, whichever is later, regardless of whether the service has begun.
Cancellation fees are capped at 5% of the product price or 100 shekels, whichever is lower, plus any proven credit card processing fees. Refunds must be issued via the original payment method within seven business days, provided the goods are undamaged and unused, and proof of purchase is presented. Certain items are non-refundable, including assembled furniture, custom-made goods, food, medicine, perishable items, opened media, underwear, swimwear, and purchases made with gift vouchers.
For online and phone purchases, consumers have broader rights. For goods, cancellation is possible from the order date up to 14 days after receiving the item or contract details. For services, it's 14 days from the transaction or receiving contract details, with continuous services cancellable anytime and one-off services requiring at least two non-rest days' notice before the scheduled date. Seniors (65+), individuals with disabilities, and new immigrants within five years receive a four-month cancellation period if the transaction involved a conversation with the business.
If a cancellation is due to a defect, non-conformity, or late delivery, no cancellation fees apply. The consumer must make the product available for pickup at the delivery location, and the refund is due within 14 days. Businesses must allow cancellations via phone, in person, registered mail, email, fax, or online if applicable. For ongoing transactions with overcharges, businesses must investigate within ten business days and refund excess amounts with interest and compensation within four business days.
New electrical, electronic, and gas appliances over 150 shekels are covered by a one-year warranty for repairs by the manufacturer or importer. Spare parts must be supplied for up to an additional year for most items, and up to seven years for large appliances like refrigerators and air conditioners. Repair timelines are stipulated, with shorter periods for in-home repairs. If a product cannot be repaired, the manufacturer must provide a replacement or refund. The Sales Law also allows for contract withdrawal due to hidden defects up to two years after purchase.
Retailers must display the total price, including VAT and unavoidable charges. The price displayed on the item is binding, even if a higher price is charged at the register. This rule applies to bulk and packaged goods in stores over 100 square meters and for remote sales. Unit pricing (per kilogram, liter, meter) is also required to facilitate comparison.
Consumers seeking compensation for violations, such as refusal of a refund or charging an incorrect price, must first submit a written request to the business. If unsatisfied, they can pursue claims in small claims court, with a limit of 39,900 shekels. The Consumer Protection and Fair Trade Authority can impose financial sanctions on businesses for violations.
