Israeli Court Approves Tiny Payout in $5.4M Spam Lawsuit
Translated & summarized from Bizportal by baba
A class-action lawsuit against IDI (Direct Insurance) seeking NIS 20 million has concluded with the applicant receiving NIS 1,600. Judge Motty Firer approved the settlement, stating the company had corrected its practices before the suit began. The case involved marketing messages sent to users who had opted out of promotional mailings. The court reduced the applicant's compensation and legal fees, citing the company's proactive changes and the limited nature of the alleged violation.
The story in 5 lines · by baba
- A class-action lawsuit against IDI (Direct Insurance) seeking NIS 20 million ended with applicant receiving NIS 1,600.
- Judge Motty Firer approved the settlement, citing company corrections before the lawsuit was filed.
- The case involved marketing SMS and emails sent to users who had opted out of promotional mailings.
- IDI stated the messages were service reminders with unintended marketing language during a two-month pilot.
- The court reduced the applicant's compensation and legal fees due to the company's actions and lawsuit's timing.
A district court judge has approved a settlement in a class-action lawsuit against Israeli insurance company IDI (Direct Insurance), which initially sought NIS 20 million (approximately $5.4 million) in damages. The case, concerning marketing messages sent via SMS and email, concluded with the applicant receiving only NIS 1,600 (approximately $430) in compensation. Judge Motty Firer of the Central District Court in Lod ruled that the company had corrected its messaging practices before the lawsuit was filed, rendering the legal action largely moot.
The lawsuit was initiated by Ben Gabra, who claimed he received marketing messages after declining to receive such communications when requesting a travel insurance quote online. Despite his refusal, he received an SMS and an email encouraging him to complete his purchase. Gabra, represented by attorney Lior Haik, argued that these messages violated anti-spam and privacy laws, estimating damages at NIS 200 for himself and NIS 20 million for the class.
IDI, represented by attorneys Ronit Siton Zelkind and Ravit Koren Pree, stated that the messages were intended as service reminders for customers who began but did not complete a purchase. The company acknowledged that due to a technical issue, the messages included marketing language and had since ceased sending them. IDI offered Gabra NIS 2,000 in personal compensation and rejected the class-action claim.
Judge Firer noted that the primary relief sought, an order to cease the practice, had already been achieved by the company's voluntary changes. He also pointed to the difficulty in proving damages for past messages and the fact that the messages were part of a limited two-month "pilot" program. Consequently, the court approved a reduced compensation for the applicant of NIS 1,600 and legal fees of NIS 10,400 plus VAT, while the company will refund the applicant NIS 6,399 in court fees.
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