New Israeli Law Mandates Businesses Record Customer Calls
Translated & summarized from Bizportal by baba
A new Israeli law, effective March 22, 2027, mandates that businesses in certain sectors record customer calls for transactions over 750 shekels. Consumers can request these recordings within ten business days to resolve disputes about service terms and pricing. Businesses must retain recordings for at least six months to two years, and failure to comply can lead to penalties. The recordings can be used as evidence in small claims court, potentially shifting the burden of proof if not provided.
The story in 6 lines · by baba
- A new Israeli law requires businesses to record customer calls for transactions over 750 shekels, starting March 22, 2027.
- Consumers are entitled to request and receive these call recordings from businesses.
- Businesses must inform customers that calls are being recorded and provide a copy upon request.
- Recordings must be kept for at least six months (no deal) or two years (deal made).
- Failure to provide recordings can result in penalties and may be seen as an admission in court.
- The law currently applies only to voice calls, not text-based communications.
A new amendment to the Consumer Protection Law in Israel, effective March 22, 2027, requires businesses in specific sectors to record customer service calls and provide these recordings to consumers upon request. This change aims to resolve disputes by providing verifiable evidence of conversations, particularly concerning pricing and service terms.
The obligation applies to transactions of at least 750 shekels, covering areas such as telecommunications, internet, television, loan brokerage, tax refunds, credit data repair, and home gas supply. Businesses must inform customers at the start of a call that it is being recorded and that they are entitled to receive a copy. Consumers are advised to explicitly confirm key details like pricing, contract duration, and cancellation terms during the call.
To obtain a recording, consumers must submit a written request, typically via email or a website form, within ten business days. The first request is free of charge. Businesses are legally obligated to retain recordings for at least six months if no deal was made, and two years if a deal was concluded. Failure to comply can result in complaints to the Consumer Protection Authority and potential financial penalties.
In cases of dispute, the recordings can be used as evidence in small claims court. If a business fails to provide a required recording, it may be presumed in court to have admitted to the consumer's version of the conversation. However, the law does not guarantee a win, as contracts and other evidence are still considered.
The amendment currently applies only to voice calls, including those made via apps, but not to text-based communications like chats or WhatsApp. The Minister of Economy has the authority to extend the requirement to written correspondence with parliamentary approval. Consumers are also permitted to record their own calls as a backup.