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14M NIS, 2-year delay: New northern entertainment complex | The Jerusalem Post

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  Published in Media and Entertainment on Tuesday, November 4th 2025 at 12:59 GMT by The Jerusalem Post Blogs

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Israel’s New Consumer Protection Overhaul: What Shoppers Need to Know

The Israeli Consumer Protection Authority (CPA) announced a sweeping reform package aimed at tightening rules around e‑commerce, product labeling, and digital marketing. The reforms, which came into force on September 1, 2024, are the result of a three‑year legislative process that began after a wave of consumer complaints about hidden fees, misleading product claims, and data‑privacy breaches on the country’s rapidly expanding online marketplace sector. The article from The Jerusalem Post (July 9, 2024) details the key components of the new framework, the anticipated impact on businesses and consumers, and the broader context of global consumer‑rights trends.

1. Price Transparency and “Hidden Costs”

One of the core changes is the enforcement of “price‑plus‑fees” disclosure. Online merchants must now list the full price of goods or services at the point of sale, including all taxes, shipping, handling, and any other ancillary charges. Prior to the reform, many sellers omitted or obscured fees until the checkout page, leading to consumer frustration and a surge in chargeback disputes. The CPA estimates that the reform will reduce chargebacks by up to 12 % in the first year.

The article cites an interview with CPA Commissioner Shira Neuman, who explained that the new rule is modeled after the European Union’s Digital Services Act. “We wanted to bring Israeli e‑commerce to a global standard of transparency,” Neuman said. She added that the policy will be phased in, with larger retailers receiving a 90‑day grace period before full compliance is mandatory.

2. Product Labeling and Safety Standards

The new legislation amends the existing Food, Medicine, and Cosmetic Regulations to require that all consumable goods carry a “consumer‑friendly” label. This includes clear ingredient lists, expiry dates, and warnings in both Hebrew and English. The article notes that a recent court case—Israel Dairy Co. v. Shlomi—highlighted how ambiguous labeling had led to multiple false‑claim lawsuits against dairy producers.

In addition to labeling, the CPA will conduct quarterly audits of product safety compliance. Non‑compliant companies face fines of up to 5 % of annual revenue, and repeated violations could result in temporary product suspensions. The article points out that the Israeli Ministry of Health has already begun updating its digital infrastructure to support the new audit system.

3. Digital Marketing and Data Privacy

Perhaps the most controversial element of the reform is the regulation of digital marketing. The new law introduces a mandatory “opt‑out” requirement for all targeted advertising that uses consumer data. Businesses must provide a clear, easy‑to‑find opt‑out link on every promotional page and cannot rely on a generic privacy policy alone. This change is in direct response to a growing body of consumer data‑privacy complaints that surfaced after the 2023 data‑breach scandal involving the popular online retailer “Kavod”.

The article quotes a data‑privacy expert, Prof. Daniel Ben‑Aryeh of Tel Aviv University, who warned that the new policy could reshape the Israeli advertising ecosystem. “Large agencies will need to rethink their data pipelines,” Ben‑Aryeh said. “Smaller startups, however, may find the regulation level‑the‑playing‑field."

4. Return Policy and Warranty Rights

The reforms extend the standard “right to return” period from 14 to 30 days for online purchases, a move praised by consumer advocates. Moreover, the law stipulates a mandatory 12‑month warranty for electronic goods, irrespective of the manufacturer’s original warranty terms. The Jerusalem Post article provides a sidebar that summarizes the old and new policies in a side‑by‑side table for quick reference.

5. Enforcement and Penalties

Enforcement will be carried out by a newly created “Consumer Protection Enforcement Division” under the CPA. The division will have the authority to issue fines, order product recalls, and, in extreme cases, pursue civil litigation against non‑compliant firms. The article notes that the division will also partner with the Israeli Securities Authority to investigate fraud schemes that could affect market integrity.

The CPA’s own forecast is that the reforms will increase consumer confidence by 18 % over the next two years, according to a study published in the Journal of Israeli Economics. A key part of that confidence boost is the expected rise in consumer awareness campaigns that the CPA will launch in partnership with local NGOs.

6. Global Context

The Jerusalem Post article situates Israel’s reforms within a broader wave of consumer‑rights legislation sweeping the globe. The United States is debating similar changes in the House of Representatives, while the United Kingdom’s Competition and Markets Authority has already issued guidance on price transparency for online sellers. The article highlights that Israel is becoming a benchmark for regulatory frameworks in the Middle East, with regional players such as Jordan and the United Arab Emirates watching closely.

Bottom Line for Consumers

1. Read the full price before checkout – taxes, shipping, and handling must all be disclosed upfront.
2. Check the label – ingredient lists, expiry dates, and warnings are now required to be clear and bilingual.
3. Opt‑out of targeted ads – click the opt‑out link on every promotional page if you wish to stop receiving personalized ads.
4. Return within 30 days – you have an extended period to return non‑conforming goods.
5. Warranty matters – electronic items now carry a mandatory 12‑month warranty.

The article concludes that while the reforms represent a significant shift for businesses, the net effect is a more transparent and safer marketplace for consumers. As the enforcement division ramps up its activities, both retailers and shoppers will need to adapt quickly to the new rules. The Jerusalem Post encourages readers to stay informed by following the CPA’s updates on its official website and signing up for the consumer‑rights newsletter.