Two Decades of Class Action Law in Israel Show Consumer Claims Lead, Competition Cases Lag
Twenty years after Israel enacted its Class Action Law in 2006, data from the past decade reveal a maturing and more efficient civil enforcement tool. In 2025, courts received 1,182 class action filings, down from 1,557 in 2016 and sharply lower than the 2,895 cases filed in the record year of 2023. This decline primarily reflects a steep drop in accessibility lawsuits under the Equal Rights for Persons with Disabilities Law, which previously made up the bulk of cases. Core sectors such as consumer protection, insurance, and banking have maintained relatively stable filing numbers over the last ten years.
Judicial efficiency has improved, with courts closing more cases annually than they open in 2024-2025, largely due to most class actions ending in settlements or withdrawals rather than full court rulings. Consumer claims dominate, with 671 filed in 2025, consistent with previous years. Accessibility lawsuits plummeted from 1,669 in 2023 to 109 in 2025 after court rulings required prior written notice to defendants, reducing the incentive to file. Other steady areas include labor, spam, and banking claims, each with around 60 cases annually.
Despite fewer filings, insurance and securities class actions hold significant financial impact, exemplified by a 2024 settlement where seven major insurers agreed to pay nearly one billion shekels. Environmental claims have increased recently, with 21 filed in 2025 compared to none in 2016. However, high entry barriers, expert costs, and limited access for vulnerable populations restrict the number of impactful cases.
Notably, competition law class actions remain rare, with only seven filed in 2025, down from a peak of 19 in 2018. Legal complexities, high costs, and prolonged proceedings deter such suits, leading experts to describe the law as ineffective in addressing economic monopolies. Similarly, class actions addressing discrimination, equal pay, and equality issues are minimal due to stringent approval requirements and low compensation awards.
Legal experts and retired judges acknowledge the law's role in shifting power balances and enhancing civil enforcement, particularly through deterrence and behavioral correction. Yet, challenges persist, including difficulties in delivering effective group compensation, prolonged litigation, and the disproportionate burden on small and medium businesses. Some practitioners criticize the system as enabling "extortion under legal cover," where businesses settle minor claims to avoid costly proceedings, often leaving plaintiffs without meaningful compensation. The upcoming July 28 symposium organized by the Israel Bar Association's Central District will further explore these developments and challenges.
