Israeli Court Allows Class-Action Lawsuit Against Retailer Osher Ad Over Pricing

An Israeli district court has permitted a class-action lawsuit to proceed against the supermarket chain Osher Ad, managed by Merav-Mazon Kol. The lawsuit was initiated by a customer who claims that many products in Osher Ad stores lack price tags on the items or their packaging, and that shelf labels do not clearly indicate the price for specific goods. The plaintiff stated that on December 19, 2022, he purchased items without clear pricing, a practice he alleges is common across various branches and affects numerous products.

Osher Ad disputes these claims, arguing that a price tag on a container or a nearby shelf label is sufficient for items displayed together, including in refrigerators. The company asserts that price tags were placed near the items in question, complying with the law. They also pointed to in-store apps, smart carts, and portable terminals as ways for customers to check prices.

The plaintiff countered that a price must be on each item, except for unpackaged goods sold loose. Judge Iris Rabinovich-Baron sided with the plaintiff at this stage, ruling that displaying packaged items in a container does not exempt the store from the requirement to price each item or its packaging. She found sufficient grounds to believe a violation could be proven and that the lack of price tags caused customer inconvenience.

The court's decision allows the case to be heard as a class action, meaning Osher Ad will be accountable to a defined group of customers, not just the original plaintiff. The group includes anyone who bought or intended to buy products at Osher Ad stores and could not find the full price on the item or packaging, covering a seven-year period before the suit was filed in February 2023, up to the current ruling.

Lawyers for the plaintiff welcomed the decision, emphasizing the convenience of on-item pricing for comparison and verification. Osher Ad acknowledged the ruling but stressed it was not a decision on the case's merits. The company plans to prove that pricing information was presented clearly and accessibly, arguing that the class-action mechanism is sometimes used for financial pressure and that their interpretation of the law was valid.