Leading a New Consumer Culture in Israel

New regulations granting cash refunds on products and services recently came into effect. Please read below to know your consumer rights.

The Law

Consumers are able to revoke transactions after purchasing a wide array of products and services, unilaterally and without a reason, and get their money back.

Your money is supposed to be returned in 14 working (commercial) days. There is also a “fine” for returning.

The Fine (partial list)

Yes, there is a penalty for returning the merchandise: 5% of the value or 100 Shekels – the lesser of the two (clothes and shoes - 2 days instead of 14).

• Electronics: The law stipulates a 10% “fine” for the cancelation if you have already opened the product.
• Credit card transactions: It might be a fine of 2%.
• Services from phone companies, cell phone companies, cable etc.: 14 days in any case. The 14 days starts counting from the day you signed the contract or from the day you received a written contract for the deal (the latest of the two).
• Membership/enrollment to a swimming pool, courses etc.: It’s possible to cancel up to 7 days before the course starts (or the season for the swimming pool etc.).

The Facts

Do you remember the last time you tried to return a product, let’s say at Macys, Target, Costco, or Wall-Mart? Sure! Most of us had such a past experience (should I say pleasure?) Remember! Don’t raise your expectations because you are now able to return merchandise in Israel. This law is like implementing a new rule to a small child. It will take time, firmness from consumers, help from the courts and a lot of patience.

You may find it very hard to return anything without having to give some kind of “reasoning” and do not be surprised or become upset if the “seller” tries to persuade you not to return the merchandise.

Cash Refund (as opposed to store credit)

This applies to different products such as furniture, home and garden equipment, electrical appliances, clothing and footwear, packaged products that have not been opened after purchase and more.

Services

The right to a cash refund is meant to apply to: Internal Tourism Services, Cosmetic and Aesthetic Services, Communications Services such as: Cable, Satellite, and Mobile Communication, Subscriptions and so on.

The Catch

As we all know, subscribing to any type of service is relatively “easy and smooth” but unsubscribing is often more like moving mountains! Companies will not invest more manpower or any other resources to make it “easy” to cancel any type of subscription and the opposite may occur. You will find it almost impossible to “speak to a representative” and when you finally are talking to one, he will try to convince you not to cancel. All these “representatives” are trained to actually “sell” something – to convince you to stay with them.

Time Table to Cancel or Revoke a Transaction

Usually the time period is 14 days from the day the transaction was made or the product was received, but there are exceptions such as:

• Clothing and footwear – 3 days
• Furniture that was assembled in the consumer`s home
• Products that were custom made for the consumer
• Food stuffs
• Medicine or dietary supplements
• Undergarments
• Jewelry (only those bought at a sum higher than 3,000 N.I.S).

The Problem with “Small” Products

Products that cost less than 50 Shekels must be returned to the store and must be undamaged and unused by the consumer.

You will find yourself having to prove that you did not use the product or there is no “damage”. You may even find out that it’s not worth the hassle to return such a product! Don’t give up.

Transition and Expectations

Israel is a very young country and we are in the beginning of the transition between the “old consumer mentality” to a “new and revolutionary” one. It will take time; therefore, we all need to exhibit patience – savlanut!

The higher your expectations the more painful it could be for you.

 Sincerely,
 

Tzvi Szajnbrum, Attorney at Law