Israeli Parliament Approves Law Requiring Businesses to Record Certain Sales Calls Over 750 Shekels

The Israeli Knesset recently passed Amendment 73 to the Consumer Protection Law, mandating businesses to record telephone sales calls for specific transactions valued at 750 shekels or more. The amendment, approved unanimously by 18 lawmakers including initiators Iman Khatib-Yasin, Merav Cohen, and Economy Committee Chair David Bitan, aims to empower consumers to verify the details of sales conversations, especially in disputes over contract terms or consent.

Under the law, businesses must notify consumers at the start of the call that it is being recorded and inform them of their right to request the recording and call logs. Recordings must be retained for two years if the transaction is completed, or six months if not. Failure to provide recordings upon consumer request will be treated as an admission of the consumer's version of events, and businesses cannot use the recordings as evidence unless permitted by a court.

The law applies only to certain types of transactions, including loan brokerage, financial asset recovery, medical rights verification, tax refund eligibility, telecommunications equipment purchases, credit data correction, ongoing maintenance services, medical or nursing services, and gas supply. It covers only unsolicited sales calls initiated by businesses without prior consumer request.

Supporters, including Merav Cohen, emphasize the law targets sectors with high rates of consumer complaints and aims to prevent deceptive sales practices. However, critics like former Deputy Minister and "I Am a Customer" founder Avir Kara warn that the law may impose costly burdens on legitimate businesses, requiring investments in recording systems, data security, and legal compliance, potentially increasing consumer prices. Kara advocates for stronger enforcement against fraudulent actors rather than broad regulatory mandates.

Legal experts note that compliance costs, especially for small businesses, could be significant due to data privacy and security requirements. Nonetheless, regulators argue most affected businesses already record calls, and the main change is the obligation to provide recordings to consumers. The Small Business Authority did not oppose the amendment, estimating recording and storage costs to be relatively low.