Israeli Knesset Committees Approve Bill Shielding Small Businesses from Class Action Lawsuits
Translated & summarized from Davar by baba
Israeli Knesset committees have approved a bill to shield businesses with annual turnovers up to 9 million shekels from class action lawsuits, including those concerning accessibility for people with disabilities. The legislation, which requires a 60-day period for businesses to correct violations, has drawn criticism from disability rights organizations who fear it will undermine accessibility enforcement. Business groups, however, have welcomed the move as a protection against frivolous lawsuits and exploitation.
The story in 5 lines · by baba
- Knesset committees approved a bill exempting businesses with annual turnovers up to 9 million shekels from class action lawsuits.
- The bill also requires a 60-day notice period for businesses to correct violations before legal action.
- Disability rights organizations oppose the bill, citing potential harm to accessibility rights and equality.
- Business groups, like LAHAV, support the bill as a measure against frivolous lawsuits and exploitation.
- The legislation aims to protect small businesses from significant financial and legal burdens.
A joint committee of the Knesset's Constitution and Law and Finance committees approved a bill on Thursday that would exempt businesses with an annual turnover of up to 9 million shekels from class action lawsuits. This amendment to the Class Actions Law means these small businesses will be protected from such legal actions, including those related to accessibility violations for people with disabilities. The proposed legislation also mandates a 60-day period for businesses to rectify alleged violations before a lawsuit can be filed, covering issues such as spam, misrepresenting product weight, and incorrect labeling.
If the bill passes the full Knesset plenum, small businesses will be shielded from class action suits concerning accessibility for disabled individuals. However, organizations advocating for the rights of people with disabilities have strongly opposed the bill, warning it could significantly impair their right to accessibility and equality. They argue that class action lawsuits are crucial not only for financial compensation but also as a mechanism to ensure compliance with the Equal Rights for Persons with Disabilities Law and incentivize businesses to improve accessibility.
The organizations stated that a disproportionate reduction in the use of this legal tool could leave accessibility violations unaddressed, thereby harming a fundamental right for a large segment of the public. They also contend that the number of accessibility-related class action suits has decreased significantly in recent years, making the proposed broad restrictions unjustified.
Separately, the bill requires a 60-day notice period for businesses with turnovers up to 50 million shekels to correct accessibility violations, a provision not opposed by disability rights groups. Roy Cohen, president of LAHAV, an organization representing small and medium-sized businesses, praised the decision, calling it a significant step against frivolous lawsuits and exploitation of the law. He added that LAHAV had advocated for even broader protections, seeking to exempt businesses with turnovers up to 20 million shekels, and vowed to continue working towards greater exemptions and higher turnover thresholds to protect business owners from constant legal threats.
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