Shoe Retailer Originals Fined Over $3 Million for Blocking Israeli Access to US Website

The Israeli Competition Authority has proposed a NIS 3 million (over $3 million USD) settlement with Originals, the official importer of Rockport shoes in Israel, for allegedly blocking Israeli consumers from accessing the US Rockport website. The authority claims this action harmed the ability of Israelis to engage in personal imports, a practice that allows consumers to buy goods directly from abroad, often at lower prices.

According to the Competition Authority, the issue arose during negotiations between Originals and the global brand owner. Originals allegedly provided the US website address to the brand owner to redirect Israeli users to the local Israeli site instead of the US one. This occurred despite the company's claims during negotiations that the proposed solution was unsuitable for the issue it raised. The authority views this cooperation as a measure that effectively hindered consumers' ability to perform personal imports of Rockport products.

Following an investigation by the Competition Authority, access for Israelis to the US Rockport website was restored. The proposed settlement, now open for public comment for 30 days, includes a payment of over NIS 3 million to the state treasury. Originals has not admitted to the alleged actions detailed in the settlement.

This case is part of a broader initiative by the Competition Authority to protect personal and parallel imports. Since a September 2023 amendment to the Competition Law, direct importers are prohibited from taking actions that could harm parallel or personal imports. The authority has been actively identifying violations in this area and has also proposed amendments to distribution agreement regulations to prevent foreign manufacturers from agreeing not to sell products to Israel, thereby limiting parallel import options.