MK Avir Kara Blasts "Paradise for Scammers," Proposes Law to Protect Small Businesses
Translated & summarized from Maariv by baba
Member of Knesset Avir Kara is pushing for legislation to protect small businesses from class-action lawsuits, calling the current system a "paradise for scammers." The proposed law would exempt businesses with turnovers up to 9 million shekels from such suits and create a preliminary process for those up to 50 million shekels. Kara criticized lawyers for filing numerous frivolous lawsuits, arguing that the costs are passed on to consumers.
The story in 6 lines · by baba
- MK Avir Kara is proposing a law to shield small businesses from class-action lawsuits.
- Businesses with turnovers up to 9 million shekels would be completely exempt from class actions.
- A preliminary legal process would be required for businesses with turnovers up to 50 million shekels.
- Kara criticized lawyers for filing hundreds of repetitive and frivolous lawsuits.
- He argues that the current system allows "scammers" to exploit businesses and raise consumer prices.
- The legislation aims to protect thousands of small and medium-sized businesses in Israel.
Member of Knesset Avir Kara has revealed a legislative proposal aimed at protecting thousands of small businesses from what he describes as "scammers" and frivolous lawsuits. Speaking on 103FM, Kara explained that following agreements in the Constitution Committee, the proposed change would shield businesses with an annual turnover of up to 9 million shekels from class-action lawsuits entirely. For businesses with turnovers up to 50 million shekels, a new mechanism will require a preliminary approach to the business before any legal action can be taken, particularly in cases deemed unjustified by the Ministry of Justice.
Kara sharply criticized lawyers, accusing them of exploiting the legal system. He stated that the Knesset is unaware of the extent of the abuse, citing instances where a single lawyer files hundreds of lawsuits, including 24 on the same day, often with the same plaintiff. He argued that this practice creates a "paradise for scammers" and that the costs are ultimately passed on to consumers through price increases, even for minor infractions like a missing sticker or incorrect country of origin labeling.
Kara urged the completion of the legislation, emphasizing that the current system forces business owners to bear the financial burden of such lawsuits, which then impacts the public. He believes the proposed changes will provide much-needed protection for small and medium-sized businesses.
