Fox Group to Allow Online Redemption of Store Credit Vouchers

The Fox Group has reached a settlement in a class-action lawsuit, allowing customers to redeem store credit vouchers on its e-commerce websites. This agreement, approved by the Central District Court, follows a claim that the company previously restricted voucher redemption to physical stores only. Fox completed technological upgrades in late July, enabling online redemption across its brands, including Fox Home, Fox Kids, Shils, Laline, Itay Brands, and Foot Locker.

As compensation, Fox will provide benefits totaling approximately NIS 527,000 (about $140,000 USD). This will be distributed as a NIS 10 discount on every purchase, either online or in-store, for three months or until the total benefit cap is reached. The company will also update its voucher printing to state they are redeemable without restriction and will allow redemption of existing, valid vouchers online.

The lawsuit, filed in January 2025 by attorney Assaf Cohen, argued that restricting voucher use to physical stores was illegal and inconvenient for consumers. The Consumer Protection and Fair Trade Authority had previously stated that vouchers, for which full payment was made without discount, should be treated as cash and not be subject to such restrictions.

Fox Group, represented by attorneys Ronit Siton Zalkind and Lior Shlomo, initially contested the claims, arguing that consumer protection laws applied only to physical branches, not online stores. However, the company proceeded with developing the necessary technology. The court approved the settlement, noting the significant technological investment by Fox and the appropriateness of the NIS 527,000 compensation as a cash-like discount.

The court also awarded NIS 93,000 in attorney fees and expenses to the plaintiff's side. The judge, Rami Chaimovitch, suggested that other retailers facing similar lawsuits should consider adopting this settlement model to save time and resources, given the precedent set by Fox and other previous agreements. Attorney Assaf Cohen expressed hope that other chains would follow suit, especially after the court's recommendation.