Israeli Shoe Retailer Fined Over 3 Million Shekels for Hindering Personal Imports

The owner of Israeli shoe retail chains Originals and Factory 54 has been fined over 3 million shekels for obstructing the personal import of Rockport footwear. An investigation by the Israeli Competition Authority revealed that Israeli consumers were accessing the U.S. Rockport website due to significant price differences between Israel and the United States. These consumers were comparing prices and making purchases through personal imports, ordering from the U.S. for delivery to Israel.

According to the authority, representatives of the official Rockport importer in Israel raised the issue of price disparities with the global brand owner during negotiations for better commercial terms. In response, the international company proposed blocking access for Israeli users and automatically redirecting them to the Originals website. Although Originals initially claimed this solution was unrelated to their negotiation points, they ultimately complied, providing the global brand owner with their Israeli website address for the redirection.

The Competition Authority determined that this action directly harmed personal imports and prevented Israeli consumers from accessing competitive pricing. The blocking and automatic redirection were only halted after the authority launched its investigation, at which point both companies restored unrestricted access for Israeli users to the U.S. Rockport website.