Israeli Court Approves Class Action Lawsuit Against Supermarket Chain Over Pricing

A district court in central Israel has approved a class-action lawsuit against the supermarket chain "Oshert Ad" (operated by Marav Food All) concerning allegations of systematically failing to display prices directly on products. The court ruled that there is a reasonable chance the chain violated its legal obligation to mark prices on items sold, causing inconvenience and negative feelings for customers.

The lawsuit, filed in February 2023, claims that Oshert Ad widely and consistently neglects to place the total price on products. The plaintiff stated that on December 19, 2022, they purchased items without visible prices, and that the chain fails to label dozens of products across various branches. This practice, the plaintiff argues, makes it difficult for customers to identify the specific price of similar-looking items.

Oshert Ad countered that it is not required to price every single item if sold within a container, and that a sign near the container or display is sufficient. The chain defined a container broadly, including refrigerators, and asserted that price tags were displayed near these displays. They also pointed to the availability of a mobile app and in-store devices like smart carts and handheld scanners that allow customers to check prices.

However, the judge, Iris Rabinovich Baron, rejected the chain's argument, stating that selling products in a "container" does not exempt them from the requirement to mark prices on the items themselves or their packaging, especially if the items are individually wrapped. The judge also noted that the availability of apps or scanners does not absolve the chain of its legal duty to display prices on the products or their packaging.

The court did not approve the lawsuit on the grounds of violating good faith under contract law. The class action will represent anyone in Israel who purchased or intended to purchase a product from Oshert Ad in the seven years prior to the lawsuit's filing and up to the approval date, if the total price was not displayed on the product or its packaging. The case will now proceed, with a final decision on the lawsuit's merits or a potential settlement to follow.