Israeli Court Approves Class Action Against Deli Chain for Charging for Packaging

A Tel Aviv Magistrate's Court has approved a class-action lawsuit against the "Beit HaGvina" (House of Cheese) deli chain, alleging it charged customers for the weight of packaging and failed to display prices for products sold by weight. The plaintiffs estimate the total damages to customers at NIS 2.5 million (approximately $670,000 USD).

The lawsuit was initiated by customers David Eliyahu and Yaron Shamir, who claimed they were overcharged for plastic containers used for items like Bulgarian cheese, Gouda, and olives. Eliyahu calculated that he paid NIS 6.76 for packaging alone on one purchase. Shamir reported that packaging for his olives, Gouda, and mousse cost him NIS 12.68, representing about 11.5% of his total bill.

Beit HaGvina, which operates five branches, argued that its cashiers use a "tare" button to exclude packaging weight and that the plaintiffs intentionally photographed price displays from misleading angles. The chain also stated it was developing software to automatically deduct packaging weight. However, Judge Eran Taussig noted the lack of written procedures for weighing and found no evidence that packaging weight was ever deducted. He also dismissed the chain's claim that the plaintiffs were "serial litigants."

The court's decision referenced a 2012 directive from the Consumer Protection Authority, which mandates that businesses must zero out the scale before adding products if charging for packaging. If a fee is charged for packaging, it must be a fixed amount, clearly itemized separately from the product price. The ruling also addressed the second claim regarding the display of prices, finding that photos of price lists presented by the chain were taken after the lawsuit was filed and were therefore irrelevant.

The class action covers customers who purchased products by weight from Beit HaGvina within the seven years preceding the lawsuit and up to the final verdict, where packaging weight was not deducted or prices were not displayed. The chain will pay NIS 14,000 in legal fees to the plaintiffs' lawyers and cover the cost of publishing the notice of the approved class action.