New Israeli Law Requires Certain Businesses to Record and Share Consumer Calls

The Israeli Consumer Protection Authority has introduced a legislative amendment mandating specific companies to record and provide consumers with copies of their phone conversations. Attorney Aya Dvir Rajwan, the legal advisor to the Authority, explained that this law targets sectors with frequent consumer harm, such as financial services, lost asset recovery, loan management, and tax refund handling. The law does not accuse all businesses in these fields of wrongdoing but aims to offer consumers evidentiary tools where repeated abuses have been identified.

A key change requires businesses to inform consumers that calls are being recorded and that they have the right to receive a copy. Previously, under privacy laws, there was no obligation to notify consumers of this right. Rajwan emphasized that recorded calls can serve as crucial evidence in disputes, protecting honest businesses and exposing deceptive practices.

The law also includes a provision that if a business fails to provide the recording upon request, the consumer's version of events is presumed correct. This shifts the evidentiary burden onto the business, which must then prove otherwise, or risk losing credibility in court.

Currently, there is a transitional period before the law fully takes effect, allowing businesses time to comply. However, companies that already record calls and notify consumers must provide recordings immediately, without waiting for the law's full implementation. This change aims to strengthen consumer rights and transparency in sectors prone to repeated violations.