Second Authority Orders Cal to Remove Misleading Claims From FlyAll Airline Club Ad
Israel's Second Authority for Television and Radio has demanded that Cal remove certain parts of its advertisement for the new FlyAll airline club due to concerns of misleading claims. This decision followed complaints from Isracard and El Al's frequent flyer club, who challenged Cal's ad comparing the two clubs and presenting results favoring Cal as unequivocal. The authority's letter stated that the ad contained potentially deceptive statements, including claims that Cal offers significantly higher returns, such as "Matan and Gal spend 10,000 shekels monthly, with Matan getting back 600 shekels annually and Gal 1,440 shekels annually." Another problematic claim was that Cal provides "twice the cashback for free flights across all airlines." The authority found no basis for these comparisons or the doubling cashback claim and requested their removal from the ad.
Additionally, Cal faced criticism over another promotional message suggesting its club offers a waiver on card fees unlike competitor FlyCard. The authority required a clear and prominent clarification that the fee waiver applies only during the first year, not just in a disclaimer. Cal was given seven days to request a reconsideration of the ruling.
This regulatory intervention is part of a broader commercial conflict triggered when El Al ended its decade-long partnership with Cal, transferring the FlyCard club with about 500,000 members to rival Isracard in a major deal. In response, Cal quickly launched FlyAll with Issta and initiated an aggressive marketing campaign to attract customers. The rivalry has escalated into legal battles and mutual accusations.
Cal responded by accusing El Al of struggling with genuine competition and attempting to obscure its club's terms to hinder fair rivalry. Cal emphasized that nearly 100,000 customers have already chosen FlyAll for its transparent and superior value proposition and expects more to follow. The Second Authority's intervention underscores the ongoing tension and scrutiny in Israel's airline loyalty program market.
