Tel Aviv Court Approves Class Action Against Pelephone Over Unnotified Price Hikes
The Central District Court in Lod has approved a class action lawsuit against Pelephone for raising customer prices without the required notification under Israel's Consumer Protection Law. The plaintiffs demand that Pelephone refund customers the difference caused by the price increases, with potential compensation estimated in the tens of millions of shekels. Pelephone was also ordered to pay 50,000 shekels in legal costs.
The lawsuit was filed by attorneys Ram Gorodiski and Ronen Ben Tzvi, who argue that Pelephone violated the law and its operating license by increasing tariffs and renewing contracts without proper written notice. Gorodiski, a former subscriber to the Platinum plan, claimed Pelephone raised his monthly fee from 49.9 to 69.9 shekels without sending a separate, clear notification 21 days before the contract ended, as required by law. Ben Tzvi similarly alleged that Pelephone raised prices after sending a notice buried at the end of other communications and without an SMS alert.
Pelephone contested the claims, stating it sent separate notifications about the end of discounted pricing along with invoices in the same envelope, citing precedent from the Supreme Court. However, Judge Iris Rabinovitz-Baron ruled there is a reasonable possibility Pelephone failed to comply with the law, which mandates a distinct notification to increase consumer awareness and transparency. The judge rejected claims that Pelephone breached its license terms but found there is a reasonable chance the Consumer Protection Law applies to some business customers, a point to be clarified during the trial.
The class includes all Pelephone customers who entered fixed-term contracts renewed or had price increases without proper notification in the seven years prior to the lawsuit. The plaintiffs are represented by attorneys Omer Paintoch, Yonatan Rappaport, Adam Levin, and Roy Biton, while Pelephone is represented by Ron Barkman, Nahum Kovovsky, and Sharon Markovitz.
