Are You Ready for the New Legal Changes?
Imagine you own a small electronics store. A client calls, inquires about a specific product, and you have a friendly conversation, offering a small discount to close the deal. The call ends in agreement, but you don't record it. Weeks later, the client complains they didn't receive the promised discount. Unfortunately, you have no record to prove your claims.
What Do Courts and Laws Consider?
When a dispute arises between a client and a business, courts examine the available evidence. In the case of phone calls, the law mandates a recording to serve as proof. The Consumer Protection Law (Amendment 73) requires recording any call in which a transaction exceeds 750 NIS. The recording must be kept for two years if the transaction is completed, and six months if not.
Additionally, if a client requests the recording, the business must provide it within ten business days, and the first recording is provided free of charge. Failure to comply with these requirements can result in substantial financial penalties.
When Is This Relevant — Checklist
- ✓Does your business sell products or services to private clients?
- ✓Do your transactions exceed 750 NIS?
- ✓Do you have an organized call recording system?
- ✓Do you store the recordings according to the law?
The Specific Law That Applies to You
The Consumer Protection Law, Amendment 73, mandates recording sales calls over 750 NIS. The law also defines what constitutes proof in a dispute between a business and a client. If there is no recording, the default is that the client is right. Therefore, a business that does not record calls may find itself losing a lawsuit and paying a hefty fine.
Questions Everyone Asks — But No One Asks the Lawyer
Real Situations — Which Side Are You On?
- ✓Clothing store owner selling over 750 NIS by phone and not recording the call — high risk.
- ✓Internet service business recording all calls with private clients — protected.
- ✓Food seller not required to record calls — no risk.
What to Do Right Now
Check if you have an organized call recording system in your business. If not, now is the time to set one up. Contract with a recording service provider if needed.
If you do nothing, you may find yourself paying hefty fines or losing legal claims. Don't wait until the last minute, consult a lawyer to understand exactly what your obligations are and how to protect yourself.