Consumer Protection Regulations (Cancellation of Transaction), 2009-2020

Under the authority granted by Sections 1 and 73 of the Consumer Protection Law, 2001 (hereinafter - the Law), in consultation with the Minister of Communications, the Minister of Tourism, the Minister of Transportation, the Minister of Health, the Minister of Education, the Minister of Science, the Minister of Culture and Sports, and the Minister of Finance, in consultation with the Commissioner of Police and with the approval of the Economic Committee of the Knesset, the following regulations are enacted:

  1. In this regulation:
  • "Original Packaging" - An object or material used by the manufacturer or importer as the wrapping for the product that is manufactured or imported and is not an integral part of the product and is not essential for its use;
  • "Cancellation Fee" - As defined in Section 1(e) of the Law;
  • "Goods" - Items for which the price paid exceeds 50 NIS.
  1. A consumer may cancel an agreement in accordance with paragraphs (1) to (3), provided that the cancellation of the purchase agreement and the return of goods is done, and the goods have not been damaged or used by the purchasing consumer; Returning the goods in their original packaging will be sufficient proof of non-use:
    1. For the purchase of goods or types of goods as mentioned in items 1 to 6 and 7 of the Appendix - within 14 days from the day the goods were received; For items 1 to 7, 6, and 7 of the Appendix, opening the original packaging alone will not be considered as usage or a defect in the goods unless proven otherwise; Connecting the goods to electricity, gas, or water will be considered usage for this purpose.
    2. For the purchase of goods or types of goods as mentioned in Section 3 of the Appendix - from the day of purchase until the end of two business days afterward, provided that the price tag on the goods, if any, has not been removed.
    3. For the purchase of services as mentioned in Sections 9 and 8 of the Appendix - within 14 days from the date of agreement execution, provided that the cancellation is made at least 14 business days before the service commencement date.
    4. For the purchase of services as mentioned in items 10 to 12 of the Appendix - within 14 days from the day the transaction was executed or from the day the written contract or document as mentioned in Section 13(c) of the Law was delivered, whichever is later, whether or not the service has begun and even if the transaction is for a fixed period.
    5. For the purchase of goods and services as mentioned in Section 14 of the Appendix - for the purchase of goods, within 14 days from the date of receipt of the goods, and for the purchase of services, within 14 days from the date of the transaction or from the day the written contract or document as mentioned in Section 13(c) of the Law was delivered, whichever is later, whether or not the service has begun and even if the transaction is for a fixed period. However, in a transaction that is not a continuous transaction as defined in Section 13(c) of the Law, within 14 days from the date of the transaction and no later than two business days before the service commencement date.
    6. For the purchase of goods as mentioned in Section 20 - within 14 days from the date of the transaction, provided that the goods have not yet been registered in the consumer's name according to the Traffic Ordinance [New Version] (hereinafter - the Traffic Ordinance).
    7. For the purchase of goods as mentioned in item 21 - from the day of purchase until the end of two business days afterward.

(a) If the consumer cancels the purchase agreement, as mentioned in Section 2, the business shall return the payment to the consumer minus cancellation fees as mentioned in Section 4 and subject to subsections (b) to (e), the full amount paid, or the charge will be canceled, provided that the consumer presents a receipt, invoice, or exchange note that proves the actual execution of the transaction with the business or other proof regarding the actual execution of the transaction, its date, the amount paid, and the means of payment.

(b) If the consumer was required to purchase goods to receive a service, the consumer is entitled to return them to the business even if they were used, as long as they are not damaged, and the business shall refund the consumer.

(c) If the goods were installed to provide a service in the consumer's home, the consumer shall pay the business the installation cost, not exceeding 100 NIS.

(d) If the consumer cancels a continuous transaction as defined in Section 13(c) of the Law that began upon its issuance, the consumer shall pay the relative amount for the service used.

(e) The refund will be made at the business from which the product was purchased, as well as in any of the branches or points of sale of the business; these provisions will not apply to a franchisee of the business provided that the franchisee has prominently displayed in their business a notice to that effect; in this subsection, "franchisee" - has the right to use the business name while maintaining a separate accounting system.

(a) The refund, as mentioned in Section 6, shall be at the time of cancellation, as far as possible or at the nearest possible date, and no later than seven business days and shall be made in the payment method used; if the payment was in cash, the refund will be in cash or by cash check; if payment was by check - if the check has been cleared, the refund mentioned shall be within five days of clearance; if payment was by credit card, the business shall cancel the charge and, if the business account is credited, the business shall refund the amount to the consumer in cash or by cash check or notify the consumer's credit card company of the transaction cancellation, and the credit card company shall immediately credit the consumer's credit card with the amount collected as long as the credit card company could receive a refund from the business for the canceled transaction; however, if it was not possible to credit the consumer's credit card as mentioned, the business shall refund the amount in cash or by cash check.

(b) Notwithstanding the provisions of subsection (a), the refund, as mentioned in Section 6 for a continuous transaction, will be subject to Section 13(d) of the Law; if the transaction was executed using a credit card, the business shall cancel the charge and, if the business account is credited, the business shall notify the consumer's credit card company of the transaction cancellation, and the credit card company shall credit the consumer's credit card with the charge amount on the next charge date following the notification of cancellation, provided that the credit card company could receive a refund from the business for the canceled transaction; however, if it was not possible to credit the consumer's credit card as mentioned, the business shall refund the amount in cash or by cash check; if the transaction was executed using direct debit authorization, and the consumer's account was debited, the business shall credit the consumer's account with the charge amount.

(a) If the consumer cancels the purchase agreement, as mentioned in Section 2, the business may charge the consumer a cancellation fee of 5% of the price of the goods or service or 100 NIS, whichever is lower.

(b) If the transaction was executed using a credit card and the business proves to the consumer that the credit card company or another entity with whom the business has transacted in credit card clearing services charged it a fee for the canceled transaction, the business may also charge the consumer the fee charged to it.

(a) The right to cancel, as mentioned in this regulation, does not apply to:

  1. Furniture assembled in the consumer's home;
  2. Goods manufactured specifically for the consumer according to measurements or special requirements;
  3. Goods that cannot be returned by law;
  4. Food products;
  5. Medicines and dietary supplements;
  6. Lost goods;
  7. Information as defined in the Computers Law, 1995;
  8. Goods that can be duplicated, copied, or reproduced, and the consumer has opened their original packaging;
  9. Underwear, including swimwear;
  10. Gas, as defined in the State Economy Arrangements Law (Legislative Amendments), 1998;
  11. Jewelry for which the price paid exceeds 3,000 NIS, except for watches;
  12. Accommodation services, travel, leisure, and recreation services fully provided outside Israel, including: - A connecting flight from Israel provided by another airline (hereinafter - a connecting flight); - A vacation package outside Israel, except for a flight outside and to Israel and a connecting flight.

(b) If the consumer requested that the goods they ordered be delivered at a date later than six months from the day of the transaction, the right of cancellation will not apply if the consumer requested to cancel the transaction after the delivery date.

(c) If the transaction was executed, and the consideration was paid by the consumer with purchase vouchers, a gift certificate, or a rechargeable magnetic card, the right of cancellation will not apply to this transaction.

  1. The commencement of this regulation is six months from the date of its publication.

  2. (a) This regulation also applies to goods and services given to the consumer as a gift from someone who is not a business (hereinafter - the gift), provided that the consumer presents to the business an exchange note that proves the actual execution of the transaction with the business or other proof regarding the actual execution of the transaction, its date, the amount paid, and the means of payment. The regulations of this regulation do not apply to the actual performance of the gift giver unless the business agreed to apply them. (b) For this regulation, a person to whom a gift was given is entitled to receive the refund or the charge cancellation and to cancel the transaction on the same conditions that apply to the giver.

Appendix

Goods and Services

  1. Jewelry.
  2. Watches.
  3. Services included in Section 13(c) of the Law.
  4. Cellphones.
  5. Goods sold at auction.
  6. Services included in Section 8(a) of the Law.
  7. Services included in Section 8(b) of the Law.
  8. Services included in Section 8(c) of the Law.
  9. Accommodation services, travel, leisure, and recreation services fully provided outside Israel, except for a flight outside and to Israel and a connecting flight.
  10. Gas, as defined in the State Economy Arrangements Law (Legislative Amendments), 1998.
  11. Services as defined in the Communications Law (Telecommunications and Broadcasting), 1998.
  12. Goods as defined in the Traffic Ordinance [New Version].