הצעת חוק להגנה על הצרכן מפני עוסקים המבצעים הפרות בנסיבות מחמירות (תיקוני חקיקה), התשפ"ד-2024Bill for Consumer Protection against Traders Who Commit Violations in Aggravating Circumstances (legislative amendments), 2024 · automatic translation · suggest a correction

What was put to the vote

«לקבל את הצעת החוק בקריאה שלישית»

Third reading: The final vote. A bill that passes its third reading becomes law. Glossary →

Bill: חוק להגנה על הצרכן מפני עוסקים המבצעים הפרות בנסיבות מחמירות (תיקוני חקיקה), התשפ"ד-2024Consumer Protection Law against Traders Who Commit Violations in Aggravating Circumstances (legislative amendments), 2024auto

About the law and the debate

Official summary of the law (Knesset)

The Law seeks to strengthen the tools in the fight against fraud and exploitation of elderly people and other consumers who are in a particularly significant position of weakness, especially in relation to businesses with whom they seek to engage. The Law expands and reinforces the protection of such consumers through the amendment of three laws – the Consumer Protection Law, 1981 (hereinafter – the Consumer Protection Law), the Payment Services Law, 2019 (hereinafter – the Payment Services Law), and the Execution Law, 1967 (hereinafter – the Execution Law). The Consumer Protection Law establishes that the Commissioner for Consumer Protection and Fair Trade (hereinafter – the Commissioner) may authorize inspectors from among the employees of the Consumer Protection and Fair Trade Authority or employees of the Ministry of Economy, with the approval of the Minister of Economy and Industry, who will be responsible for enforcing the provisions of the Consumer Protection Law. Prior to the Law's entry into force, the Commissioner and the inspectors did not have, among the full range of powers granted to them for enforcing the provisions of the Consumer Protection Law, the power to access computer material. The absence of such power harms, in many cases, the advancement of criminal investigations and prevents the Authority's inspectors from seizing evidence required to establish and prove the offense, due to the fact that the vast majority of businesses keep their records and business conduct on computers. Accordingly, the Law amended the Consumer Protection Law and established that if the Commissioner or an authorized inspector has a reasonable suspicion that a business committed an offense under aggravated circumstances, either of them may request a court order to access computer material and to produce output through such access. The Law grants the Commissioner authority to determine that a business is a violator under aggravated circumstances, for the purpose of applying restrictions on such a business under the amendments made to the Payment Services Law and the Execution Law. It should be noted that a violation under aggravated circumstances can be a violation committed through repeated use of conduct toward a consumer who is a person with special characteristics, meaning a person with a disability, a senior citizen, a new immigrant, a minor, a person lacking capacity, or a person who does not sufficiently understand the language in which the transaction is conducted to understand the transaction. The Law authorizes the Minister of Economy and Industry, with the approval of the Knesset Economic Affairs Committee, to designate additional consumers who will be considered persons with special characteristics for the purposes of the Law. Additionally, a violation under aggravated circumstances can be a violation committed through threats or any means of intimidation against a consumer or their family members, or the commission of a violation causing significant harm to a large number of consumers. The Law regulates the stages for determining that a business is a violator under aggravated circumstances. First, before the Commissioner determines that a business has committed a violation under aggravated circumstances, the Commissioner will deliver to the business a notice of intent to determine that it is such a violating business. In the notice, the Commissioner will state, among other things, the act or omission constituting the violation, the restrictions that will apply to the business if it is determined that it is indeed a violating business under aggravated circumstances, and the business's right to present its arguments to the Commissioner. A copy of such notice will be forwarded to the payment service provider and to the director of the Execution Affairs system. The significance of the notice to the payment service provider is that such a payment service provider will cease to process payments for a business to which the Commissioner has delivered a notice of intent to determine that it is a violating business under aggravated circumstances, meaning a freeze will be placed on funds that consumers have paid but which have not yet been transferred to the business. If it is finally determined, after a hearing, that the business is a violating business under aggravated circumstances, these funds will be returned to the consumers. The significance of the notice to the director of the Execution Affairs system is that the system director will delay proceedings and funds in cases where the business regarding which the notice of intent was delivered is the winning party. Second, during the 14 days following the sending of the notice of intent, or 21 days thereafter in case of an extension, the business will be given an opportunity to present its arguments to the Commissioner. If the business presented its arguments as stated, the Commissioner will decide, within 14 days or 21 days in case of an extension, from the end of the hearing period or from the day on which the business's arguments were received, whichever is earlier, whether to determine that the business is a violator under aggravated circumstances or not. Nevertheless, the Commissioner may issue the decision regarding such determination within a longer period of 45 days from the end of the hearing period or from the day on which the business's arguments were received, whichever is earlier, but the period of freezing the funds will not exceed those same 21 days. It should be noted that if a business did not present its arguments within the 14-day period, or in case of an extension within a period of 21 days from the date of delivery of the notice of intent – the Commissioner will determine that the business is a violating business under aggravated circumstances. In the third stage, if the Commissioner decided to determine that a business is a violating business under aggravated circumstances, or decided not to determine that a business is a violating business under aggravated circumstances – the Commissioner will deliver a notice of the decision to the business, to the payment service provider, and to the director of the Execution Affairs system. Beyond the powers granted to the Commissioner to determine that a business is a violating business under aggravated circumstances, it was further established that the Commissioner will be authorized to determine that a business that has a connection to a business determined to be a violating business under aggravated circumstances is itself a violating business under aggravated circumstances, under one of two alternatives: the first, transfer of the business activity of the first violating business to the connected party, and the second - identification of a pattern of conduct similar to that of the violator under aggravated circumstances in the connected party. The connection between the two businesses can be expressed through control relationships existing between the businesses, family relationships, and more. The determination regarding a connected business will be made only by the Commissioner and only in accordance with procedures instructed by the Commissioner. Such procedures will be approved by the Attorney General and published on the Authority's website. It was further established, in light of the precedent-setting model adopted in the Law regarding the powers granted to the Commissioner, that a reporting obligation to the Economic Affairs Committee has been added, whereby the Commissioner will report to the Committee on the determination notices delivered to businesses, particularly notices delivered to a party connected to a violating business, as well as on difficulties in implementing the provisions of the Law, if any, all in accordance with the provisions of the Law.

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All arguments and speakers are on the bill page →

By party on the day of the vote

• for
• abstained
• against