Consumer rights · Updated:

Subscription Cancellation and Recovery of Charges

Cancelled a gym membership, a streaming service or an app subscription in Israel — and been charged again anyway? That is very often a breach of the Consumer Protection Law, and it can carry a full refund plus statutory damages.

In short

Under section 13D(c) of the Consumer Protection Law, a continuing transaction ends within 3 business days of the cancellation notice (6 if sent by registered mail), and nothing supplied after that may be charged. Later charges must be refunded; under section 31A a court may also award statutory damages of up to ILS 10,000 without proof of loss (ILS 50,000 for a repeated or continuing breach).

Office in Kiryat Ono, in the Tel Aviv metropolitan area; Hebrew and English.

The familiar pattern

You cancelled. You received a confirmation. The following month — a charge. Then another. A "continuing transaction" — a gym membership, a streaming subscription, a communications package — is exactly the kind of arrangement Israeli consumer law expects a consumer to be able to walk away from cleanly, and exactly the kind of charge that keeps recurring precisely because most consumers never chase it.

Where a business keeps charging after a valid cancellation, even where it issued a cancellation confirmation, that is capable of being a breach of the Consumer Protection Law — and the law does not require you to prove any actual loss to recover for it.

What the law provides

Section 13D(c) — ending a continuing transaction. A subscription (a gym, an app, a streaming service, a communications package) is a "continuing transaction". A cancellation notice may be given by telephone, email, fax, the website or app through which the transaction was made, or by registered mail (section 14T), stating the consumer's name and Israeli ID number. From the moment of that notice, the business must stop billing within 3 business days (6 business days if the notice was sent by registered mail). Any charge after that date is an unlawful charge and gives rise to a full refund.

Section 14T recognises several channels for giving a valid cancellation notice: (1) orally, by telephone or a statement made in person at the place of business, unless the law requires cancellation to be in writing; (2) by registered mail; (3) by email; (4) by fax, where the business has one; (5) via the internet, for a transaction that could be entered into that way; (6) by another method the Minister prescribes.

Section 31A — statutory damages. A court may award a consumer damages of up to ILS 10,000 per breach, with no need to prove loss, where a business continued to charge the consumer after a valid cancellation notice for a continuing transaction, in breach of section 13D(c) — the breach is listed expressly in section 31A(a)(2b). For a repeated or continuing breach, or in aggravating circumstances, the court may award up to ILS 50,000 (section 31A(c)). Under section 31A(b), a claim for these damages must be preceded by a written request to the business — but for this breach a cancellation notice given under section 14T(a) is enough, unless it was given orally (by telephone or in person at the place of business). Sending a demand letter is still good practice. The amount actually awarded depends on the severity of the breach, the business's conduct, and how long the unlawful charges continued — which is exactly why organised evidence of the cancellation and the charges is what decides the size of the recovery.

Sections 13D, 14T and 31A are available in English on the key statutory provisions page (unofficial translation; the Hebrew text governs).

How to proceed, step by step

1. Preserve the evidence. The cancellation confirmation (an email, an SMS, a screenshot, a reference number, a recorded call), and a statement from the credit card or bank account showing every charge made after cancellation.

2. Send a written demand. A letter to the business stating the cancellation date, demanding that billing stop, that every sum charged since be refunded, and claiming damages under section 31A. A properly organised letter narrows the dispute and puts the business's position on record ahead of any claim.

3. Sue. For sums of up to ILS 39,900 (the ceiling as of January 2026), the Small Claims Court — no legal representation at the hearing itself, though a lawyer can help prepare the claim. Where the same practice is affecting many other customers of the same business, the right vehicle is a class action.

4. Complain in parallel. Israel's Consumer Protection and Fair Trade Authority is empowered to enforce the law and impose administrative sanctions on businesses that breach it.

Frequently asked questions

How quickly must a business stop charging me after I cancel?

Under section 13D(c) of the Consumer Protection Law — within 3 business days of the cancellation notice (6 business days if sent by registered mail). A charge made after that date is an unlawful charge.

How much compensation can I get for a charge made after cancellation?

A full refund of everything charged from the date the business should have stopped, plus statutory damages of up to ILS 10,000 per breach with no need to prove loss, under section 31A. For a repeated or continuing breach, or aggravating circumstances, the ceiling is ILS 50,000 (section 31A(c)). The actual amount depends on the severity of the breach, how long it continued, and the business's conduct. Statutory damages of this kind are awarded in an individual claim; they are not awarded in a class action (section 20(e) of the Class Actions Law).

How do I cancel a subscription so the cancellation actually takes effect?

Give a cancellation notice through a channel the law recognises — telephone, email, the website or app through which the transaction was made, fax, or registered mail — with your name and Israeli ID number, and keep proof: a reference number, a screenshot or the email itself.

Do I need a lawyer to sue over a post-cancellation charge?

Not always. For a small amount you can file in the Small Claims Court yourself, and sometimes a letter of demand from a lawyer is enough. Where a large company is charging many customers the same way, the right route may be a class action — and there, legal representation is necessary.

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Legal framework and sources

Checked against the current statutory text in September 2026. The sources above are in Hebrew; the Hebrew text is the governing text of the law. This information is general and is not legal advice.

This page is general information about Israeli consumer law, written for English-speaking readers. It is not legal advice, does not create an attorney-client relationship, and is no substitute for advice on your own facts. The governing text of every statute cited is the Hebrew original. Past results do not guarantee similar results in the future.

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