Online store terms of use: what they must contain

Service page: Digital commerce and AI lawyer: terms, privacy and direct mailing.

What online store terms of use are, and what they really require

Terms of use (also called “website terms” or “terms and conditions”) are a document that one party writes in advance. It serves many contracts with an unlimited number of customers. So they are a standard-form contract under the Standard Contracts Law, 5743-1982. At the same time, every sale in an online store is a distance sale under the Consumer Protection Law, 5741-1981. That is a transaction made following distance marketing, without the parties being present together. These two regimes apply in parallel, and both are mandatory in their essential parts: the terms of use cannot contract out of them.

What the law requires of an online store: a checklist for the terms, section by section

The table brings together the requirements set out further down the page, each with the section it comes from. Some of them are not in the terms themselves. They are on the product page, in the checkout process, in the order confirmation or on the home page. So you check the whole website, not just the document. This is a list of duties, not sample terms of use.

An outline of clauses for online store terms of use (to copy)

The outline puts in order the topics that the table above requires you to cover, with square brackets to complete. It is not ready-made terms of use: each clause must describe what the store actually does.

When not to rely on the outline alone

• The store sells products or services that are subject to special rules, such as tourism services, a renewing subscription, food or products made to order.
• The store sells to customers outside Israel, or the customers’ information is stored or processed abroad.
• The terms include a limitation of liability, an arbitration clause or a choice of the place of jurisdiction. Such terms in a standard-form contract are examined under sections 4 and 5 of the Standard Contracts Law, and some of them are void.
• You received a demand letter, an approach from the Consumer Protection and Fair Trade Authority or a motion to certify a class action. The reason was the terms or the website.

The disclosure duties: what must appear before the customer confirms

Section 14C(a) of the Consumer Protection Law lists the details that the business must disclose to the consumer in distance marketing. They belong on the product page and in the checkout process, not after payment:

• The name, ID number and address of the business, in Israel and abroad. “The store team” is not a name, and a contact form is not an address.
• The main features of the item or the service: specifications, sizes, quantity, condition.
• The price of the item or the service and the available payment terms: section 14C(f) defines “price” as the total price. It is including delivery charges and any other addition or expense that the consumer will bear. Shipping fees that appear only on the payment page do not meet the requirement.
• The date and method of delivery of the item or the service.
• The period during which the offer will be valid.
• Details of the warranty for the item.
• Details of the right to cancel: under section 14C(c) or 14C1(c).

Section 14C(b) adds a separate duty. No later than the date of delivery of the item or the service, the business must give the consumer a written document, in Hebrew or in the language in which the marketing approach was made. It includes the business’s details, the product features, the price and payment terms, and how the right to cancel can be exercised. It also includes the manufacturer’s name and the country of manufacture, information on the warranty, and further terms. In practice this is the order confirmation, so it is worth checking that all these details appear in it.

The right to cancel: 14 days, and when it does not apply

In a distance sale, the consumer may cancel the transaction under section 14C(c):

• For a product: from the day the transaction is made until 14 days after one of two days, whichever is later. One is the day the product is received. The other is the day the document under section 14C(b) is received.
• For a service: within 14 days from the day the transaction is made or the day the document is received, whichever is later. In a continuing transaction, whether or not the service has started. In a transaction that is not continuing, the cancellation must be made at least two days that are not days of rest before the date on which the service is to be provided.

Section 14C(d) sets a closed list of exceptions in which the right to cancel does not apply. The first is perishable goods. The second is accommodation, travel, vacation or leisure services, if the cancellation falls within seven days that are not days of rest before the service is provided. The third is “information” as defined in the Computers Law, 5755-1995. The fourth is goods made specially for the consumer following the transaction. The fifth is goods that can be recorded, reproduced or copied, whose original packaging the consumer has opened. That is the whole list. “Sale items cannot be returned” is not an existing exception.

An exception in the consumer’s favor applies under section 14C1. Some consumers may cancel a distance sale within four months: a person with a disability, a senior citizen (aged 65 or over) or a new immigrant (less than five years since they received their immigrant certificate). The condition is that the transaction included a conversation between the business and the consumer, including a conversation by means of electronic communication. The business may require one certificate proving this, and no more.

Cancellation fee: the ceiling in section 14E

Section 14E distinguishes between two cancellation situations, and the distinction is at the heart of every returns policy:

• Cancellation because of a defect, non-conformity, failure to deliver on time or another breach by the store: a full refund within 14 days of receiving the cancellation notice, and canceling the charge. The store also gives a copy of the notice canceling the charge. And no cancellation fee of any kind. The product is made available to the business at the place where it was delivered to the consumer.
• Cancellation for any other reason: a refund within 14 days. The store may deduct a cancellation fee of up to 5% of the price of the item or NIS 100, whichever is lower. Here it is the consumer who returns the product to the business’s place of business.

Two points that are often missed. First, section 14E(d) defines a “cancellation fee” as including shipping, packaging or any other expense that the business claims it incurred. In other words, the ceiling of 5% or NIS 100 applies to everything together. You cannot charge a cancellation fee and in addition shipping fees. Second, section 14E(c) preserves the business’s right to sue for its damages. This applies if the value of the item fell as a result of a significant deterioration in its condition. But that is a claim, not an automatic deduction from the refund.

A sample calculation: the ceiling is the lower of 5% of the price of the item and NIS 100. So the turning point is a price of NIS 2,000 (5% × 2,000 = NIS 100). In a cancellation that is not because of a defect or a breach:

• A product priced at NIS 1,200: 5% × 1,200 = NIS 60. The store may deduct up to NIS 60 in total, including shipping and packaging (section 14E(d)). It refunds at least NIS 1,140 within 14 days of receiving the cancellation notice.
• A product priced at NIS 3,500: 5% × 3,500 = NIS 175, which is more than NIS 100. So the maximum deduction is NIS 100, and the refund is at least NIS 3,400.
• The same product arrived defective, did not match the details given or was not delivered on time. Then there is no cancellation fee at all, and the refund is in full (section 14E(a)(1)).

The cancellation link on the home page: the duty in section 14I(b)

Section 14I of the law lists the ways to give a cancellation notice. These are orally by phone or at the place of business, by registered mail, by email, and by fax if the business has one. Online is also a way, in a transaction that can be made with a consumer by that means. Then comes the specific provision. In a transaction that can be made online, the business must create on the main page of its website a dedicated link for sending a cancellation notice, placed prominently and clearly.

Alongside the link, the business must publish the ways of giving the notice. It must also publish the details the consumer must include in it (name and ID number). These also go on the invoice or the payment notice. The details must appear next to each other, with special prominence and in clear letters. A link for “cancellation of a transaction” hidden on the terms of use page, three clicks deep, does not meet the requirement.

A returns policy beyond the law, and what it may set

There is also a further right to cancel, alongside the right in a distance sale. The Consumer Protection Regulations (Cancellation of Transaction), 5771-2010 (תקנות הגנת הצרכן (ביטול עסקה), התשע״א-2010) create it for a list of products and services in the Schedule. Examples are furniture, home and garden equipment, electrical and electronic appliances, clothing and footwear, classes and courses, and more. The periods differ. For most items, it is 14 days from receiving the product. For clothing and footwear, it is until the end of two days that are not days of rest from the day of purchase, provided that the price tag has not been removed. The regulations apply to goods priced above NIS 50, and are conditional on the product not having been damaged or used. Here too the cancellation fee is limited to 5% or NIS 100, whichever is lower.

Regulation 6 excludes some items from this right. Among other things, it excludes furniture assembled in the consumer’s home, goods made to special measurements, food products, and medicines and dietary supplements. It also excludes underwear and swimwear, and jewelry priced above NIS 3,000 (except watches).

Selling a service, a subscription or a digital product: what changes in the terms

The right to cancel a distance sale also applies to services. But the periods differ from those for a physical product. So the terms of use must set them out according to what the website actually sells:

• A continuing service (a subscription, a monthly service, software as a service for consumers): you can cancel within 14 days, whether or not the service has already started (section 14C(c)(2)). The period runs from the day of the transaction or the day you received the document with its details, whichever is later. If the service has already started, the consumer pays the proportional consideration for what they received (section 14E(b1)).
• A one-time service (a workshop, an advice session, a private lesson): the same 14 days. But the cancellation must be made at least two days that are not days of rest before the date on which the service is to be provided.
• Accommodation, travel, vacation or leisure: the right to cancel does not apply in one case (section 14C(d)(2)). That is when the date of cancellation falls within seven days that are not days of rest before the date of the service.

In a continuing service, three further rules apply. Before the transaction, the consumer must be told about their right to cancel. They must also be told the length of the transaction and its end date, if it is for a fixed period. And they must be told the payments that will apply on cancellation and how they are calculated. In a distance sale, these details can be included in the document given under section 14C(b) (section 13C). After a cancellation notice, the contract ends within three business days. If the notice was sent by registered mail, it ends within six business days. From that date, no charges are allowed (section 13D(c)). A term under which a fixed-period transaction continues automatically after its end date has no effect, except for the exceptions in section 13A(d). The details are on the automatic renewal of subscriptions page, and for software-as-a-service providers on the SaaS terms and agreement page.

A digital product. The exception in section 14C(d)(3) applies to “information” as defined in the Computers Law. That is data, signs, concepts or instructions, expressed in a computer-readable language and stored in a computer or another storage medium, except software. The right to cancel under the Consumer Protection Regulations (Cancellation of Transaction) does not apply to such information either (regulation 6(a)(7)). So the wording “digital products cannot be canceled” is broader than the law. Software is not “information” under the definition. And a product that also includes a service, such as live sessions or mentoring, may be examined as a service. Whether a particular product falls within the exception depends on what is actually sold. So the terms of use must describe the product as it is, and apply the exception only to what falls within it.

Limitation of liability: what survives under the Standard Contracts Law, and what is void

Section 3 of the Standard Contracts Law empowers a court and the Standard Contracts Tribunal to cancel or change an unfair (oppressive) term. That is a term that is unfair to customers or gives the supplier an unfair advantage. Section 5 sets two terms that are void from the outset, with no need to prove unfairness:

• A term that denies or limits the customer’s right to go to court is void.
• A term that exempts the supplier, in whole or in part, from liability for bodily injury or for a malicious act is void.

Section 4 adds a list of presumptions of unfairness: terms that are presumed to be unfair, and the burden shifts to the store. Among them are the following. An exemption from liability imposed by law, or an unreasonable qualification of contractual liability (paragraph 1). An unreasonable right to cancel, suspend or postpone performance of the contract or to change material obligations (paragraph 2). A right to set or change a price after the contract is made (paragraph 4). Denying or limiting a right or remedy that the customer has under the law (paragraph 6). Shifting the burden of proof to the customer (paragraph 7). An arbitration clause (paragraph 8). Contracting out of the legal provisions on the place of jurisdiction, or an exclusive right of the supplier to choose the place of jurisdiction (paragraph 9). And a term in which the customer is required to confirm or declare that they have read the contract (paragraph 12).

What this means in practice: take “the company will not be liable for any damage whatsoever” and “exclusive jurisdiction is given to the courts in California”. These are not strong clauses. They are clauses that fall within the presumption of unfairness. Wording that passes the test limits liability for indirect damage and loss of profits. It sets a proportionate ceiling linked to the consideration actually paid. And it expressly leaves the rights under the Consumer Protection Law intact. And an “I have read and agree” checkbox is not a substitute for disclosure; it is exactly the term that paragraph 12 is aimed at.

Sample terms from another website: 10 clauses you must not copy

Terms of use copied from another website describe another store: other products, other shipping and another returns policy. Beyond that, the terms of cancellation are an essential matter in the transaction. A clause may describe them differently from what the store does or from what the law sets. Such a clause may mislead the consumer (section 2(a)(21) of the Consumer Protection Law). These are the clauses that recur in copied terms, and next to each one, the reason it does not hold up:

A presumption of unfairness means that the burden shifts to the store to show that the term is not unfair. A court that finds an unfair term will cancel it or change it (sections 3 and 19). What is worth taking from another website’s terms of use is the order of the topics. Write the content according to what the store does, following the outline above.

Terms of use and a privacy policy: what is the difference

An online store collects names, addresses, payment details and browsing data. Section 11 of the Protection of Privacy Law, 5741-1981 deals with every request to a person for personal information to be processed in a database. The request must come with a notice. The notice states whether there is a legal duty to provide the information or whether providing it depends on consent, and what the result of not consenting is. It states the purpose of the collection, and the name of the controller of the database and how to contact them. It says to whom the information will be passed and for what purposes. And it mentions the right of access and the right to ask for correction. This is the core of the privacy policy, and it is a document separate from the terms of use, which should link to it.

What this means in practice: you can link from the terms of use to the privacy policy, but that is not enough. Every form on the website, such as registration, checkout or a newsletter, must show the notice required by section 11. A clear link to it next to the fields is also possible.

Amendment No. 13 to the Law came into force on 14 August 2025. Since then, the duty to register a database has been greatly narrowed, and it no longer applies to most stores. Alongside it, a duty was added to notify the Privacy Protection Authority of a database containing information of special sensitivity on more than 100,000 people. The full details are on the privacy policy and database registration page, and for cookies and collecting browsing data, on the cookie consent page.

Website accessibility is part of the store’s exposure

The Equal Rights for Persons with Disabilities (Service Accessibility Adjustments) Regulations, 5773-2013 (תקנות שוויון זכויות לאנשים עם מוגבלות (התאמות נגישות לשירות), התשע״ג-2013) apply to an internet service. It must be made accessible under Israeli Standard IS 5568 at level AA. The deadline was the date set in the regulations for completing the adjustments (26 October 2017). Two kinds of business are exempt from the online accessibility adjustments. One is an exempt dealer (a small business that does not charge VAT). The other is a business whose average annual turnover does not exceed NIS 100,000. A store that is not accessible is exposed to a claim for a civil wrong and to a class action: the full details here.

A foreign website that sells to Israelis, and an Israeli store that sells abroad

“Jurisdiction” and “governing law” clauses appear in the terms of use of many international companies, and are also copied from them into Israeli terms. Four decisions of the Supreme Court deal with them: jurisdiction and foreign law clauses in online terms of use.

For a foreign website that targets customers in Israel, for example in Hebrew, with prices in shekels or with other adjustments for the Israeli customer: the Agoda case applies. The court held that Israeli law applies to the information shown to the customer on the website in its Israeli version. A foreign law clause does not exempt the website from the duty to display the total price. This is because the Consumer Protection Law applies despite any agreement to the contrary. Section 36 applies to all the provisions of the Law. So when Israeli law applies to the transaction, a foreign law clause cannot exclude the disclosure duties and the right to cancel either. A broader question was not decided: is every foreign law clause in a standard-form contract with small customers unfair? That remained a single judge’s opinion. In the decision of 18 January 2026, the court called on the legislature to regulate the matter in legislation. On 29 January 2026, the Ministry of Justice published a draft bill memorandum, the “Applicability of Laws to a Foreign Business Directing Its Activity to Customers in Israel Law” (חוק תחולת דינים על עוסק זר המכווין את פעילותו ללקוחות בישראל). It proposes to apply to such a business, among other things, the Consumer Protection Law and the Standard Contracts Law. As of 1 November 2026, this is only a proposal, not a law in force.

For an Israeli store that also sells abroad: the laws of the customer’s country may apply according to their own rules. These include consumer protection, tax and data protection laws. A choice of law and jurisdiction clause governs the relationship between the parties. But it does not cancel mandatory provisions in the consumer’s place of residence. In a standard-form contract governed by Israeli law, a condition on the place of jurisdiction falls within the presumption of unfairness in section 4(9). Before opening an international sales channel, it is worth getting a focused legal opinion for the target countries.

Terms of use for a website that is not a store, or for an app

A content website, a business profile website or an app that does not sell anything also usually publishes “terms of use”. Such a document is a standard-form contract if it was drafted in advance to be used with many users (section 2 of the Standard Contracts Law). A “term” also includes a clause in another document that the terms refer to. So the same rules apply. A court that finds an unfair term will cancel it or change it, and denying the right to go to court is void.

What changes is the Consumer Protection Law. The disclosure duty applies when the website or the app approaches a consumer to sell them an item or a service at a distance. The right to cancel applies to the transaction made as a result, including by electronic communication of any kind (section 14C(a), (c) and (f)). An app that sells a consumer a subscription or a service falls within the definition, and a website that only displays content does not. In both cases, if the website or the app collects personal details, the notice under section 11 of the Protection of Privacy Law applies.

Such terms of use deal mainly with the permitted use of content, content that users upload and its removal, and closing an account. On a platform’s liability for user content, see platform liability and content moderation. An open interface for developers has a separate page: API terms of use. For an app that children use, see children’s privacy online.

What happens when the terms of use do not comply with the law

There are three routes, and all three work in parallel. Exemplary damages: section 31A of the Consumer Protection Law allows the court to award damages that do not depend on loss. The ceiling is NIS 10,000 for certain violations, including failure to refund the consideration after a distance sale was canceled. It is NIS 50,000 if the violation is repeated, continuing or committed in aggravated circumstances. As a rule, a prior written approach is required, but for the failure-to-refund cause of action it is enough that the consumer canceled the transaction.

A class action: item 1 of the Second Schedule to the Class Actions Law, 5766-2006 (חוק תובענות ייצוגיות, התשס״ו-2006) allows a motion to certify a class action against a business, as defined in the Consumer Protection Law. It covers a matter between the business and a customer, whether or not they entered into a transaction. Defective terms of use are exactly the kind of violation that repeats itself with every customer. So they are a natural target for a certification motion. This is what the process of filing a certification motion looks like. For a business that received a certification motion: defending a motion to certify a class action. Administrative and criminal enforcement: alongside these, the Consumer Protection and Fair Trade Authority is active.

Frequently asked questions

Must an online store publish terms of use?

The law does not require a document called “terms of use”. But it does require three things. You must disclose the details in section 14C(a) to the consumer before the transaction. You must publish on the main page a dedicated and prominent link for sending a cancellation notice under section 14I. And you must give a written document no later than the delivery date. Terms of use are the organized way to do all this in one place. They also let you add what the store may set for itself: shipping, stock and use of content.

How much of a cancellation fee may be charged to a customer who changed their mind?

In a cancellation that is not because of a defect or a breach by the store, the fee is up to 5% of the price of the transaction or NIS 100, whichever is lower. Under section 14E(d), this amount also includes shipping and packaging costs. In a cancellation because of a defect, non-conformity, late delivery or another breach, no cancellation fee may be charged at all. The refund is in full.

Can the terms say “the company is not responsible for any damage”?

You can write it, but it will not hold up. An exemption from liability for bodily injury or for a malicious act is void under section 5(b) of the Standard Contracts Law. An exemption from liability imposed by law falls within the presumption of unfairness in section 4(1). Wording that holds water limits certain heads of damage with a proportionate ceiling and leaves the consumer’s rights under the law intact.

The customer opened the packaging: have they lost the right to cancel?

Usually not. In a distance sale, opening the packaging is not on the list of exceptions in section 14C(d). The exception is goods that can be recorded, reproduced or copied. Under the right to cancel in the regulations, the product must not have been damaged or used. The regulations deal expressly with furniture, home and garden equipment, electrical and electronic appliances, water purifiers and watches (regulation 2(1)). For these, opening the original packaging is not in itself use unless proved otherwise. But connecting to electricity, gas or water does count as use. For some products, the right to cancel arises only because the product is in its original packaging (item (4) of the Schedule). For these, the right is conditional on the packaging not having been opened.

What is the difference between terms of use and a privacy policy?

The terms of use are a standard-form contract that sets the terms of the transaction. They are examined under the Standard Contracts Law and the Consumer Protection Law. The privacy policy relies on section 11 of the Protection of Privacy Law. Every request for personal information comes with a notice. It states whether providing it is a duty or depends on consent, and what the result of not consenting is. It states the purpose, the controller and how to contact them, and to whom the information will be passed. And it mentions the rights of access and correction.

Can you copy terms of use from another website?

You can take the order of the topics, but not the content. Copied terms describe another store. Cancellation terms that do not match what the store does or the law may mislead, because the terms of cancellation are an essential matter in the transaction (section 2(a)(21)). A clause such as “no returns on sale items” contradicts the law. Clauses on jurisdiction abroad or “the customer confirms having read” are presumed unfair. So the burden of justifying them shifts to the store.

May you set that refunds will be given as store credit only?

Not when a distance sale is canceled. The business refunds the part of the price of the transaction that was paid, within 14 days of receiving the cancellation notice. It also cancels the charge. In a cancellation that is not because of a defect or a breach, it may deduct a cancellation fee. The fee is up to 5% or NIS 100, whichever is lower (section 14E).

A digital product or an online course: does the customer have a right to cancel?

The exception in the law applies to “information” as defined in the Computers Law, and the definition excludes software (section 14C(d)(3)). A product that also includes a service, such as live sessions or mentoring, may be examined as a service. A service can be canceled within 14 days under the rules in section 14C(c)(2). The classification depends on what is actually sold.

Is a “foreign law applies” clause in the terms valid against an Israeli customer?

If the website targets customers in Israel and Israeli law applies, the clause does not exclude the mandatory provisions of the Consumer Protection Law. That Law applies despite any agreement to the contrary (section 36). The Supreme Court held this on the duty to display the total price on a booking website (LCA 6992/22, 27 May 2024). The website was in an Israeli version that referred to Singapore law. An application for a further hearing was rejected on 18 January 2026.