Originals to Pay Over $750,000 in Deal Over Rockport Import Restrictions

Israel's Competition Authority has reached an agreement with IEL, the owner of the Originals retail chain, requiring the company to pay over 3 million shekels (approximately $750,000) to the state treasury. This settlement stems from allegations that IEL, as the official importer of Rockport footwear in Israel, engaged in practices that hindered parallel and personal imports.

The investigation was initiated due to significant price differences between Rockport shoes in Israel and the United States. Israeli consumers had been comparing prices on the U.S. Rockport website and sometimes purchasing shoes for shipment to the U.S. and then onward to Israel. According to the Competition Authority, during commercial negotiations between Originals and the global Rockport brand owner, Israeli representatives raised this issue.

In response, the brand owner reportedly offered to block Israeli access to the U.S. website and redirect them to Originals' Israeli site. Originals provided the U.S. site's address for this redirection, though the company claims the proposed solution did not address their original concern. The Competition Authority contends that by facilitating this redirection, Originals enabled the obstruction of personal imports.

Following the authority's inquiry, Israelis regained access to the U.S. Rockport website. The agreed-upon settlement, which is now open for public comment for 30 days, does not include an admission of wrongdoing by Originals. This case is part of a broader crackdown by the Competition Authority on practices that impede parallel imports, following a September 2023 amendment to the Competition Law that prohibits such actions by direct importers.