Service page: Consumer claims and class actions lawyer.
The right to cancel: where does it come from?
The contract says “no cancellations”. You read it, said “fine, there is no choice”, and paid for another two months. But there is a choice. In Israel, a contract clause that contradicts the Consumer Protection Law is simply not valid, even if you signed it.
The Consumer Protection Law, 5741-1981 (mainly sections 13D, 14C, 14E and 14I) regulates the right to cancel distance sales and continuing transactions such as subscriptions. This Law cannot be contracted out of to the consumer’s detriment: what is written in the contract against you does not prevail over what the Law gives you.
The 14-day window: cancellation without a reason
In a distance sale of a service, you can cancel without giving reasons within 14 days of the day the transaction was made or of the day you received the document with the transaction details, whichever is later (section 14C(c)). In a continuing transaction the right exists even if you have already started using the service, but you will pay the proportional amount for the service provided (section 14E(b1)), and the business may deduct a cancellation fee of up to 5% of the price or NIS 100, whichever is lower (section 14E(b)). In a cancellation because of a defect, a non-conformity or a breach by the business, there is no cancellation fee at all (section 14E(a)).
The mechanism: deliver a cancellation notice through one of the channels in section 14I, preferably in writing, for evidence. The business must refund the money within 14 days of the day it received the notice (section 14E).
Cancellation after 14 days: still possible
Beyond the 14-day window, subscription contracts can be canceled, but under different conditions:
- A continuing subscription, for a fixed or an unlimited period: can be canceled at any time. The contract ends within 3 business days of delivery of the cancellation notice (6 business days by registered mail), and from that date no charge may be made (section 13D(c)). Payments for early cancellation must be set out in advance in the contract (section 13C); for gyms special caps apply (the Fourth Schedule to the Law)
- A renewing monthly subscription: the same rule: the cancellation takes effect within 3 business days of delivery of the notice, not only at the end of the billing cycle
- Another ground for cancellation: breach of the contract by the company. In a fundamental breach you can rescind immediately, and in a non-fundamental breach, after you gave an extension for performing the contract and it was not performed within a reasonable time (section 7 of the Contracts (Remedies for Breach of Contract) Law, 5731-1970). Cancellation within the 14 days of a distance sale, when it results from a breach by the business, involves no cancellation fee (section 14E(a))
Has something similar happened to you?You can write to me what happened and with whom, without documents.
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What happens after you write to me
- You write what happened and with whom. No documents.
- I get back to you within one business day for a short call of a few minutes.
- If it is a matter I handle: after the call you will receive, in writing, what will be done and what the next step is. Work starts only after you approve.
At the end of the call you will know one of three things: it is a matter I handle, and what the next step is; you can manage without a lawyer, and which guide fits; or it is outside my field, and where to turn.
Deadlines: when the cancellation takes effect and when the money comes back
| The situation | Deadline | Source |
|---|---|---|
| Cancellation of a distance sale of a service | From the day of the transaction until 14 days from the day it was made or from the day the document with the transaction details was received, whichever is later | Section 14C(c) |
| Refund of the money after such a cancellation | Within 14 days of receiving the cancellation notice, less a cancellation fee of up to 5% of the price or NIS 100, whichever is lower (and with no cancellation fee when the cancellation is because of a defect, a non-conformity or a breach) | Section 14E(a) and (b) |
| Service already provided in a continuing transaction | The consumer pays the proportional amount for the service provided | Section 14E(b1) |
| Ending a continuing transaction, at any time | Within 3 business days of delivery of the cancellation notice; by registered mail, 6 business days from the day it was handed in for sending | Section 13D(c) |
| A fixed-period gym membership | The cancellation takes effect at the end of a month from delivery of a written cancellation notice | Section 13A1 and item 2 of the Fourth Schedule |
| A claim of an excess charge under a debit authorization | The business looks into it within 10 business days, and if it collected an excess amount, refunds it within 4 business days | Section 13D1(a) |
A hypothetical example: a monthly subscription to a car wash service was bought on a website on 1 September 2026, the service was activated immediately, and on 10 September 2026 a cancellation notice was sent by email, within the 14 days. The business may collect the proportional amount for the days on which the service was provided (section 14E(b1)) and a cancellation fee of up to 5% of the price or NIS 100, whichever is lower (section 14E(b)(1)), and it must refund the balance within 14 days of receiving the notice.
What to keep
- The cancellation notice and the evidence of its delivery: the email you sent, a screenshot from the website or the registered mail confirmation.
- The subscription terms and the document with the transaction details, and when you received it.
- A statement of charges from the credit card or the account, from the month before the cancellation onward.
- The correspondence with customer service, including the request numbers.
Whom do you turn to when the company does not cancel?
- To the business itself: a cancellation notice in one of the ways listed in section 14I(a), and a written request to refund what was collected after the cancellation date. A written request is also a condition for claiming exemplary damages (section 31A(b)).
- To the bank or the credit card company: when the charge was made under a debit authorization, you can revoke the authorization by notifying the bank (section 34(a) of the Payment Services Law, 5779-2019). See Revoking a bank debit authorization after canceling a subscription.
- To the Consumer Protection and Fair Trade Authority: a complaint. The Authority may impose a monetary sanction on a business for the breaches listed in section 22C.
- To the Small Claims Court: a claim by an individual for an amount of up to NIS 39,900, as of 1 January 2026 (section 60(a)(1) of the Courts Law [Consolidated Version], 5744-1984).
What the company may charge, and what it may not
Allowed:
- On canceling a distance transaction within 14 days: a cancellation fee of up to 5% of the price or NIS 100, whichever is lower (section 14E(b))
- For mobile, internet, landline phone and TV: as a rule, no payment may be charged for the cancellation, even within the 14 days; only the balance of equipment payments and debts may be charged (sections 51A and 51D of the Communications (Telecommunications and Broadcasting) Law, 5742-1982).
- Payment for service actually provided
Not allowed:
- A disproportionate cancellation penalty that makes cancellation harder
- A term requiring cancellation “face to face” when the sale was made online
- Delaying the refund beyond 14 days
- A contract term that says “no cancellations under any circumstances”
Canceled a subscription and the charges continue?I will get back to you within one business day.
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The company refuses to cancel: what do you do?
If a company refuses to honor the right to cancel:
- Step 1: send a formal letter in writing that cites the law (section 14I of the Consumer Protection Law: the ways to deliver a cancellation notice)
- Step 2: file a complaint with the Consumer Protection and Fair Trade Authority
- Step 3: a small claim in the Small Claims Court, up to NIS 39,900 (as of 1 January 2026); representation by a lawyer at the hearing only with the court’s permission (section 63(a) of the Courts Law)
- Step 4: under certain conditions, a class action. A company that acts this way systematically is exposed to a class action on behalf of many customers.
Who has already paid for refusing to cancel: three monetary sanctions, and a Supreme Court judgment on how they are calculated
“The company refuses to cancel” is neither a rare situation nor one without a sanction. Three records from the register of monetary sanctions of the Consumer Protection and Fair Trade Authority, each for not canceling a transaction or not refunding money after a lawful cancellation. For each line, the register’s “Appeal” column and “Sanction amount after appeal” column were also read, and the status recorded in them is given in the body of the line. The details are correct as of the check of the register on 17 October 2026.
- E. Bar-Mayim Ltd. (אי. בר - מים בע״מ, company no. 515623221): proceeding 64-23, a monetary sanction of NIS 367,824, for breach of section 2(a), section 14E (non-cancellation of a transaction), section 14I(d) and section 13D(c), which the Authority describes in the register as “non-cancellation of a continuing transaction”. In the appeal column of the register: the appeal was dismissed, and the column for the amount after appeal repeats the same amount: the sanction stands.
- Lois Team Ltd. (לויס טים בע״מ, company no. 516641404): proceeding 240-24, a monetary sanction of NIS 210,408, for breach of section 14C (non-disclosure in marketing), non-disclosure in a distance sale, and section 14E (non-cancellation of a transaction). According to the document on the circumstances of the breach, the company did not refund consumers their money where the transaction was lawfully canceled. The appeal column of the register states that an appeal was filed, and records neither an outcome nor an amount after appeal, so the amount is not final.
- Kishrey Teufa Ltd. (קשרי תעופה בע״מ, company no. 520039009): proceeding 321-25, a monetary sanction of NIS 297,192, for breach of section 2(a) and section 14E. According to the document on the circumstances of the breach, where a consumer asked to cancel a transaction and was entitled to do so by law, the company did not refund their money within the period set by law. The appeal column of the register states that an appeal was filed, and records neither an outcome nor an amount after appeal, so the amount is not final.
How the breaches from which such a sanction is calculated are counted: LCA 32981-11-25: on 10 June 2026 the Supreme Court (Justices D. Mintz, A. Stein and G. Canfy-Steinitz) gave judgment in an application for leave to appeal, LCA 32981-11-25 Afikim Mayim Ltd. v. Consumer Protection and Fair Trade Authority. In the opinion of Justice A. Stein it was held that the unit of breach for a monetary sanction under section 22C of the Consumer Protection Law is counted by “act”: defective wording of a standard document, failure to deliver standard documents and defective wording of the website (including failure to place a dedicated cancellation link) count as one act; whereas misleading consumers in phone calls, not canceling a transaction and unlawfully collecting cancellation fees count as several acts, according to the number of customers toward whom the breach was committed. The appeal was allowed and the matter was returned to the Magistrates’ Court to decide again on the number of breaches and the amount of the sanction, so the sanction that was the subject of that proceeding is not final, and its amount is not given here. The court added that the Authority should soon put in place an orderly, clear and public procedure for counting breaches. A judgment is not a binding precedent unless it was given by the Supreme Court, and every case is assessed on its own facts.
Source: the register of monetary sanctions of the Consumer Protection and Fair Trade Authority, and for the judgment, the Supreme Court decisions database. The name of the business, the company number, the proceeding number, the sanction amount, the sections breached, the “Appeal” column and the “Sanction amount after appeal” column were read from the register itself on 17 October 2026; the factual sentence in each line is based on the “circumstances of the breach” document that the Authority publishes for that proceeding, and the text of the judgment was read in the database. A monetary sanction is an administrative decision of the Authority and can be appealed: where the register records an amount after appeal, the amount after the appeal is the one given here; where the appeal column is empty, the register records no appeal in that line. All the items in this block are decisions of another authority or of a court in someone else’s matter, and are not cases of this office.
Has something similar happened to you?You can write to me what happened and with whom, without documents.
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When is it worth contacting a lawyer?
- The company keeps charging even after a written demand to stop the charge and return the money.
- The company relies on a “no cancellations” clause in the contract; the provisions of the Consumer Protection Law apply notwithstanding any waiver or agreement to the contrary (section 36).
- You were charged a cancellation fee or a payment beyond what section 14E allows.
- The amount you are claiming is more than NIS 39,900, the ceiling for small claims as of 1 January 2026 (section 60(a)(1) of the Courts Law).
You can also do it without a lawyer: in a small claim you file and conduct the case yourself; representation by a lawyer is allowed there only with the court’s permission and for special reasons (section 63(a) of the Courts Law). You can deliver the cancellation notice yourself, in one of the ways listed in section 14I(a).
Suing on your own? You can prepare the statement of claim for the Small Claims Court with me: after we agree in writing, we will go through the contract, the receipts and the correspondence together, and I will draft the facts, the amount you are claiming and the list of attachments. You file the claim, and you appear at the hearing yourself. The statement of claim will say that it was drafted with the help of a lawyer who does not file it and does not represent you in the proceedings (as set out by the Tel Aviv District ethics committee of the Israel Bar). The work on the draft is in Hebrew or English, and the draft itself is written in Hebrew. All the details · Send a WhatsApp message: against whom, for what amount and what you have already sent.
Frequently asked questions
I bought on a website, and the company demands that I cancel in person. Is that allowed?
No. A term requiring cancellation “face to face” when the sale was made online is prohibited. You can deliver the cancellation notice yourself, in one of the ways listed in section 14I(a) of the Consumer Protection Law, preferably in writing, for evidence.
The company keeps charging by standing order (direct debit). Can the bank stop the charge?
Yes. When the charge was made under a debit authorization, you can revoke the authorization by notifying the bank (section 34(a) of the Payment Services Law).
The company kept charging after the cancellation. Can I get compensation?
Yes. When the business kept charging after a cancellation notice, the small claim can include, besides the refund of the charges, exemplary damages without proof of damage under section 31A(a)(2b) of the Consumer Protection Law, subject to the precondition in section 31A(b): a written request, and for continued charging after cancellation the cancellation notice is enough, if it was not given orally.
Sources
- Consumer Protection Law, 5741-1981
- The Judiciary: filing a small claim (cap NIS 39,900 as of 1 January 2026)
- Consumer Protection Regulations (Cancellation of Transaction), 5771-2010
- Consumer Protection Law: the sections this site discusses
The links lead to the original legislation (in Hebrew). The binding text is the one published in Sefer HaHukim (the official gazette of statutes).
Has something similar happened to you?You can write to me what happened and with whom, without documents.
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Checklist
- Practical tip: when canceling a subscription, send a written notice (by email or through the dedicated cancellation link on the business’s website, section 14I(a)–(b)) and keep a record. ‘I told the representative on the phone’ is hard to prove. The short text: ‘I would like to cancel subscription X from date X. Please confirm.’ Add your name and ID number (section 14I(c)), and that is enough.
- The statutory basis: under section 36 of the Consumer Protection Law, the provisions of the Law apply notwithstanding any waiver or agreement to the contrary; and section 2(b2) requires a business that announces that there is no right to cancel to qualify its announcement to the cases set by law.
- Common mistake: many consumers do not ask for a refund when they cancel a subscription bought at a distance within 14 days, because the subscription “was already running”. This is a mistake: the right to cancel exists even after the service has started; only the proportional amount for what was provided and a limited cancellation fee are deducted from the refund.
- Tactical point: when the business kept charging after a cancellation notice, the small claim can include, besides the refund of the charges, exemplary damages under section 31A(a)(2b): up to NIS 10,000 without proof of damage, subject to the precondition in section 31A(b).