Consumer rights and consumer claims: the complete guide

When a business does not repair, does not refund or misleads, the first step is checking a consumer claim: a personal one in the Small Claims Court or the Magistrates’ Court, and, for harm that repeats across many customers, also a class action. Anyone who canceled a continuing transaction and the charges continued will find the steps on the page Canceling a subscription and recovering charges.

What the law provides

The legal framework in this area rests on the following laws. The links lead to the original legislation (in Hebrew); the binding text is the one published in Sefer HaHukim (the official gazette of statutes).

• Consumer Protection Law, 5741-1981
• Class Actions Law, 5766-2006
• Standard Contracts Law, 5743-1982
• Payment Services Law, 5779-2019 (חוק שירותי תשלום, התשע״ט-2019) (in force from 14 October 2020; replaced the Debit Cards Law, 5746-1986)
• Sale Law, 5728-1968

Legislation index: all the sections the site discusses →

The index of sections on the site: Payment Services Law, 5779-2019.

The right to cancel a distance transaction

Section 14C of the Consumer Protection Law, 5741-1981 gives a consumer who bought “at a distance” (online, by phone or from a catalog) the right to cancel the transaction within 14 days of receiving the goods or receiving the details of the transaction, whichever is later. Under section 14E, the business may charge a cancellation fee of up to 5% of the price or NIS 100, whichever is lower - unless the cancellation results from a defect or a breach on its part, and then it is not entitled to charge a cancellation fee at all. People aged 65+, persons with disabilities and new immigrants (olim) are entitled to an extended period of up to four months when entering into the transaction included a conversation with the business, including by electronic communication (section 14C1(c)).

When a class action is worth considering

When the breach is small in its personal value but repeats itself across a wide public, the Class Actions Law, 5766-2006 allows a plaintiff - someone with a personal cause of action, a public authority or an organization within its objectives - to ask for a claim to be certified on behalf of a whole class of injured people (sections 3–4). The court certifies the claim as a class action only if it found that this is the efficient and fair way to decide the dispute. After certification, the judgment or the settlement binds all the class members as defined, including those who did not act actively in the proceeding - except anyone who notified the court that they are leaving the class (section 11).

A numerical example

A consumer who canceled the purchase of an electrical appliance for NIS 800 with no defect in the product is entitled to a refund less a cancellation fee of up to NIS 40 (5%). In contrast, a mobile phone company that charged, without consent, a monthly fee of NIS 9.90 to 40,000 subscribers for a year caused small personal damage (about NIS 119 per subscriber) that does not justify an individual claim, but cumulative damage (about NIS 4.75 million) that justifies a single class action.

For a practical guide, see Canceling a transaction under Israel’s Consumer Protection Law: 14 days and a cancellation fee of up to 5% and How to file a class action in Israel: conditions, steps and a self-check, as well as the index of sections of the Consumer Protection Law and the index of sections of the Class Actions Law.

Map of the topic

Consumer law regulates the relationship between a private consumer and a business: what the business must disclose before the transaction, when you may cancel and get a refund, what liability applies to a defective product or service, and what the remedies are when the business misleads or keeps charging after cancellation. A lawyer is needed when the amount is significant, when the business refuses to correct a clear breach, or when the same harm repeats across a wide public and justifies a class action.

Canceling transactions and subscriptions, and charges that continue

The Consumer Protection Law grants a right of cancellation in a distance sale and in a continuing transaction, and sets how soon the business must stop charging. In the articles: subscription cancellation checklist, charges after cancellation, automatic renewal, canceling a gym membership compared with a digital subscription, canceling a timeshare and the cancellation period. For practical steps — the page Canceling a subscription and recovering charges.

Products, online commerce and misleading advertising

A product that broke or does not match what was promised entitles you to repair, replacement or a refund; additional rules apply to an online purchase and to an unauthorized charge; and the prohibition on misleading applies to the advertisement, to the product description and to the terms of the transaction. See: product warranty, defective product, e-commerce rights, credit card disputes, misleading advertising, exploiting distress and misleading design patterns; unfair terms are examined under the Standard Contracts Law.

Small claims, class actions and related articles

A single harm is usually sued for in the Small Claims Court; harm that repeats across many customers can justify a class action, which requires the court’s certification, and for the business — defense against a class action. The list below also includes related articles from contract law, employment law and defamation law.

The guides in this area (71)

All the indexed guides on the site in this area. Each guide states the legislation it relies on.

• Canceling a subscription to an app or streaming service: what the law says, and how it differs from a gym
• Subscription cancellation: a full checklist + a cancellation notice template
• Charged after subscription cancellation? 5 steps to get a refund
• Gym subscription cancellation: consumer rights
• Automatic renewal of a subscription: what the law requires of the business
• Canceling a transaction under Israel’s Consumer Protection Law: 14 days and a cancellation fee of up to 5%
• Misleading advertising: what the law says
• Credit card chargeback in Israel: an item not supplied, a double charge and charges abroad
• How to file a class action in Israel: conditions, steps and a self-check
• Settlement agreement in a class action: what you need to know
• Flight canceled or delayed in Israel: when compensation is due
• Subscription price increase, overcharging and the duty of disclosure: what the company may do
• A warranty for a product that broke: what the manufacturer owes you and how to claim it
• Environmental class actions: what can be claimed
• Defective product: return and compensation
• Advertising law in Israel: limits and duties
• Credit data: four rights you have against the credit database
• Liability for deliveries: who pays when a parcel is lost
• Limitations of liability and disclaimers: legal drafting
• Exploiting distress and excessive pricing: the law
• Defending against class actions: strategies
• Timeshare contract: when you can cancel and how to get out of the deal
• An arbitration clause in a consumer contract: is it binding?
• Claims against a telecom company: mobile, internet and TV
• An unauthorized charge on a credit card: getting your money back
• What Israel’s Consumer Protection Law gives you
• Subscription cancellation under the Consumer Protection Law
• The Small Claims Court: a practical guide
• Canceled shows: your rights and how to get your money back
• Excessive bank charges: how to spot them, dispute them and get your money back
• Price transparency: duties of businesses
• Canceling a wedding: the legal and financial consequences
• Buying a used car: your rights, and how not to get caught out
• A defective new car and the “Lemon Law”: the buyer’s rights
• International product warranty — what happens when you bought abroad?
• Standard-form contracts: consumer protection and unfair terms
• Mediation in small claims: advantages and process
• Late delivery of an apartment by a contractor: compensation under section 5A of the Sale (Apartments) Law
• Retirement age: rights, duties and adjustments
• Defamation claims in Israel: how much is awarded, and what you must prove
• Limitation of liability in a contract: what works, what does not — and how not to get it wrong
• Sexual harassment at work: the employer’s duties and the employee’s rights
• Late salary in Israel: when and how to sue the employer
• Assignment of rights and assignment of obligations: what really requires consent
• SaaS agreements: what to check before you sign
• Barter agreement: exchanging goods and services between businesses
• Breach of contract in Israel: compensation, enforcement or rescission
• Online store terms of use: what they must contain
• Was something false published about you? How to respond and sue
• Letter of intent: is it legally binding
• Cyberbullying: what the law allows you to do against those who harm you
• Overtime: calculation, rights and common traps
• A cheque bounced — what do you do now?
• Customer data leak and a class action: the cause of action, the route and the remedies
• Dark patterns: misleading design and consumer law
• The Spam Law: compensation without proof of damage for each message in a personal claim, and what is possible in a class action
• Cancellation of a Black Friday or Cyber Monday purchase: 14 days, misleading sales and pricing errors
• Loot boxes in games: the law in Israel
• Private car leasing: rights and duties under the law
• A business sued under the Spam Law: the first steps
• Charged by standing order after canceling a subscription: revoking the bank authorization and the refund
• How to join a class action, and how to leave it
• Food poisoning or allergy at a restaurant: who is liable and how to sue
• The garage charged more than agreed? Price quotes, extra work and faulty repairs under the law
• Influencer marketing: disclosure duties and legality
• Compensation for consumers without proof of damage: a late technician, a delivery that did not arrive and waiting on a call center line
• A technician did not arrive on time: when the law sets compensation of NIS 300 or NIS 600
• A delivery that did not arrive on time: the compensation in the law, the advance payment and the delivery date
• Canceling a subscription to food delivery: refund, trial and 14 days
• A small claim statement of claim: what must appear in it, and a template to fill in
• You were served with a small claim: what to write in the statement of defense, and the deadline for filing it

FAQ

How long do I have to cancel a transaction I made online?
For goods - 14 days from the day the goods were received or from the day the disclosure document with the details of the transaction was received, whichever is later; for a service - 14 days from the day the transaction was made or from receiving the document, whichever is later (section 14C(c) of the Consumer Protection Law). People aged 65 and over, persons with disabilities and new immigrants (olim) are entitled to an extended period of up to four months when entering into the transaction included a conversation with the business, including by electronic communication (section 14C1(c)).

How much of a cancellation fee can the business charge me?
Up to 5% of the price of the transaction or NIS 100 - whichever is lower (section 14E). If the cancellation results from a defect in the product, a mismatch with the details provided, failure to deliver on time or another breach by the business, it is not entitled to charge a cancellation fee at all (section 14E(a)).

When is my harm suited to a class action rather than a personal claim?
When the cause of action is listed in the Second Schedule to the Class Actions Law (section 3), and the personal damage is too small to justify an individual claim but repeats itself across a wide public - and the court finds, among other things, that a class action is the efficient and fair way to decide the dispute (section 8(a)).

If a class action was certified on a matter that concerns me, do I have to actively join it?
No. If you are within the class that was defined, the judgment or the settlement will bind you without your having to act, and you will not be able to file a separate personal claim on the same matter - unless you notified the court that you are leaving the class within 45 days of the publication of the certification decision, or by a later date that it set (section 11).

Within what time can you cancel a transaction made online or by phone?
In a distance sale, the consumer may cancel within 14 days from the day the product was received or from the day the document with the details of the transaction was received, whichever is later; for a service — within 14 days from the day of the transaction or from receiving the document. The business may charge a cancellation fee of up to 5% of the price of the transaction or NIS 100, whichever is lower, unless the cancellation results from a defect or a breach on its part. More: the cancellation period for a transaction.

I canceled a subscription and the charges continued: what do I do?
In a continuing transaction, the business must stop charging within three business days from the day the cancellation notice was delivered, and within six business days if it was sent by registered mail. If the charges continue, keep the cancellation notice and the details of the charges, demand a refund in writing, and if there is no response, contact the Consumer Protection and Fair Trade Authority or sue. Guide: Charged after a subscription cancellation? 5 steps to get a refund.

When do you file a small claim, and when a class action?
A small claim suits a personal harm for a limited amount and is conducted, as a rule, without representation by a lawyer (section 63 of the Courts Law). A class action suits a case where the same breach harms a wide public of customers, even if the damage to each one is small, and the cause of action is listed in the Second Schedule to the Class Actions Law (section 3); it requires the court’s certification, and the person filing it represents the whole class. See: the small claims guide and also filing a class action.

For collected answers in all practice areas, see the FAQ page, and for the map of services — all practice areas.

All the questions on the site about class actions and consumer claims and about canceling subscriptions and recovering charges, grouped by page, and each question links to its answer.

For short definitions with the section of the law, for example continuing transaction, exemplary damages and class action, see the glossary of legal terms.

Self-check tools: Did the cancellation take effect?, self-check for a class action and texts to copy; all the tools are on the calculators and tools page.

The content of this page is general information, is not legal advice and does not create an attorney-client relationship. Translated: 12 November 2026 · Hebrew version updated: 8 November 2026.