Fifteen Years After Cottage Cheese Protests, Cost of Living at Peak

Fifteen years after the "Cottage Cheese protests" erupted in Israel, the cost of living has reached its highest point, according to Ehud Peleg, former head of the Israeli Consumers Council. Peleg stated that the market in Israel is not free but exploited by business owners, and the goal should be a fair market for everyone. He questioned whether there was a genuine desire to improve the situation, if foreign considerations influenced decisions, and if consumer welfare was prioritized.

The 2011 protests, sparked by unaffordable prices for cottage cheese and housing, prompted the government to issue statements, make declarations, and establish committees. However, Peleg argues that the primary solution proposed by the establishment, increasing market competition by reducing the power of monopolies and cartels, has proven ineffective in Israel's small market. Unlike larger economies, Israel lacks sufficient incentive for new players to enter, and existing large companies often face interference.

Peleg criticized government ministries for their aversion to oversight, which requires budgets and exposes them to media scrutiny. He cited instances where the Bank of Israel dismissed calls to regulate bank fees as "populism," and the head of the Fair Trade Authority labeled demands for government-supervised shelf placement of products as "Bolshevism."

The Consumers Council advocated for simple measures, such as requiring businesses to place government-regulated products near similar non-regulated items to foster competition and provide consumers with genuine choice. Peleg asserted that strengthening consumer choice through easier price comparisons is a fundamental consumer right, which has been a central effort of the council. He lamented that shopping has become a complex mathematical exercise for the average consumer and that essential tools like price tags are under constant threat.

Peleg concluded that a lack of fairness, accountability, and an ineffective legal system contribute to a loss of public trust in state authorities. He referenced a television program suggesting that supermarket chains still view consumers as a "cash cow," quoting a former CEO who admitted to waking up thinking about how to extract more money from customers. Peleg described this as "commerce without morality," a concept warned against by Mahatma Gandhi, and urged businesses to treat customers as partners who deserve fair treatment.