Consumer Protection Law: Five Rules for a Legal Sale

A Promotion Gone Awry

Imagine you're the owner of a clothing store in Tel Aviv. You decide to launch a refreshing summer sale to attract new customers. Everything seems fine until you receive a letter from a customer's attorney claiming that your sale violates the Consumer Protection Law. How did this happen? You thought everything was in order, but in reality, you didn't meet several basic legal requirements. You failed to announce a previous pricing period and did not clearly state which products the sale applied to. The result? Legal troubles and financial losses.

The most important point is to ensure that all your sale terms comply with the Consumer Protection Law to avoid legal sanctions.

What the Courts Really Care About

The law requires complete transparency regarding promotions. This means you must clearly state which products the sale covers and which it does not. Adding a list of exceptions in small print is not enough.

Additionally, the previous price must have been active for at least 21 days before the sale starts. You cannot raise the price just to announce a misleading discount.

Finally, the sale period must be limited to 35 days. Beyond that, the sale is not considered genuine, and this must be considered to avoid lawsuits.

When It Matters — Checklist

✓Did you clearly state which products the sale covers?
✓Was the previous price valid for at least 21 days?
✓Are all sale terms transparent and clear?
✓Does the sale period not exceed 35 days?
✓Do you have sufficient stock for wide advertising?

Not sure if this applies to you?

Describe your situation — I'll tell you in minutes if there's a risk

Send a WhatsApp message →

The Specific Law That Applies

חוק רלוונטי

Consumer Protection Law

Defines transparency obligations in promotions

Violation may lead to lawsuits and sanctions

The Consumer Protection Law aims to ensure that consumers receive full and transparent information about promotions. The requirements include presenting the sale terms clearly and accurately and ensuring that the previous price was valid for at least 21 days. Violating the law can result in legal action, so it's crucial to adhere to the rules.

Questions Everyone Asks — But No One Asks the Lawyer

Can I add terms to the promotion in small print?−

No. The law demands full transparency, so terms must be clear and open to everyone.

What happens if I didn't comply with the previous price period?−

It may be considered a violation of the law, and the first step would be to reduce the price for the required period or cancel the sale.

What to do if I've already received a complaint?−

First, contact a lawyer specializing in the Consumer Protection Law to review the case and minimize damage.

How much will it cost me?−

Non-compliance with the law can result in costly legal actions.

How to protect myself in the future?−

Ensure all promotions comply with legal requirements and consult a lawyer before any launch.

Real Situations — Which Side Are You On?

An electronics store manager advertising a sale on all products but not stating that it doesn't apply to certain items. Incorrect.
A restaurant owner announcing a discount on the entire menu but raising prices a week before. Incorrect.
A clothing store owner who follows all legal rules and ensures everything is clear and in effect. Correct.

What to Do Right Now

First, check that all your sale terms comply with the law. Do not sign off on any advertisement before ensuring everything meets the criteria. If the sale terms are unclear or if you're unsure, contact me for legal advice. Acting quickly can prevent future legal issues.