Israeli Committee Approves Bill Shielding Small Businesses from Class Action Lawsuits
Translated & summarized from Channel 13 by baba
An Israeli parliamentary committee approved a bill to shield small businesses from class action lawsuits, setting an annual turnover limit of 9 million shekels for such suits. The legislation also introduces a mandatory 60-day notice period for businesses to rectify violations before a lawsuit can be filed. Committee Chairman Simcha Rothman highlighted the bill's support for small businesses and its potential impact on the cost of living. The bill now awaits final approval from the Knesset plenum.
The story in 5 lines · by baba
- A joint Israeli parliamentary committee approved a bill to protect small businesses from class action lawsuits.
- Businesses with an annual turnover below 9 million shekels will be exempt from class action lawsuits.
- A 60-day preliminary notice period is required for businesses to correct violations before a lawsuit can be filed.
- The bill aims to support small businesses and potentially lower the cost of living.
- The legislation was initiated by MKs Yonatan Mishriki and Sasson Guetta and supported by Chairman Simcha Rothman.
A joint committee of the Constitution, Law and Justice Committee and the Economy Committee has approved a bill to reform class action lawsuits, advancing it to its second and third readings. The legislation, which also incorporates a private bill initiated by MKs Yonatan Mishriki and Sasson Guetta, aims to protect small businesses from such suits. Under the proposed law, class action lawsuits will not be permissible against businesses with an annual turnover not exceeding 9 million shekels. Additionally, the bill mandates a preliminary notice period of 60 days to the defendant for rectifying alleged violations before a class action can be filed. Failure to comply with this preliminary notice requirement will result in the court dismissing the application. The law will apply to provisions concerning package weight deductions, advertising mail, goods labeling, unit pricing, and accessibility adjustments in services. Committee Chairman Simcha Rothman stated that significant work was done to ensure the text was agreeable to all factions in the Knesset, sending a message of unity in supporting small businesses and addressing the cost of living. Former Deputy Minister Avir Kara commented that the legislation is an achievement for the public, impacting the cost of living and trust in the legal system, which he believes has been exploited by some lawyers. The committee's approval is contingent on the plenum's endorsement of the bill's split and its merger in the Knesset committee.
