College Not an 'Obligor' Under Consumer Law, Court Rules in Cancellation Case

A woman who registered for courses at the Academic College of Oranim in October 2025, paying over NIS 5,000 for tuition and registration fees, had her registration canceled just 13 days later. She subsequently filed a small claims lawsuit seeking a full refund, minus a nominal NIS 100 fee, arguing she canceled within 14 days of the transaction and less than 14 days before classes began. The college, however, maintained that consumer protection laws did not apply to academic course registrations, and that its own regulations governed cancellations.

Following the lawsuit, the college returned NIS 3,695 to the woman, stating this was a gesture of goodwill, as their calculations based on the academic regulations entitled her to only NIS 1,645 back. The college argued that academic institutions are not considered 'obligors' under the Consumer Protection Law when it comes to core academic activities like course registration. The registrar, Maya Blau, ruled that the Consumer Protection Law's definition of 'obligor' and 'consumer' does not apply to the core academic activities of an institution, such as course registration. Therefore, the terms of the college's regulations, akin to a contract, were binding.

Even if the Consumer Protection Law had applied, Blau noted, the woman would not have been entitled to a full refund. The law allows for cancellation of courses within 14 days of agreement, provided the cancellation occurs at least 14 non-rest days before the service begins. In this case, the cancellation was made only four days before the courses started, failing to meet the statutory requirement. The registrar found the college's calculation of the refund to be accurate and fair, stating the woman received NIS 2,050 more than she was entitled to under the regulations. The lawsuit was dismissed, with the court finding the college had not acted unlawfully and had not charged excessive cancellation fees.