The proposed changes have some big backers – in addition to Ministry lawyers Michael Atlan and Hanna Tiri, organizations such as Public Faith and the Federation of Israeli Chambers of Commerce are involved.

The road to reform may not be easy. A similar plan came up for debate two years ago before the Knesset Economics Committee but was shot down.

The new proposal has all kinds of rules but the bottom line is mostly good news. Consumers will be able to demand their money back on products that cost more than NIS 50 (although not food, drugs or other perishable items). Products purchased using gift certificates would be covered, and consumers could return products bought from a chain  store to any branch.

Not all product refunds will be equal, however. Clothing will only be able to be returned within one day of purchase. And certain vendors such as telecom companies will be able to keep up to NIS 100 of the amount paid to them if the consumer has already used a hardware installation. Those companies may also charge cancellation fees. But it’s those kinds of accommodations that may help this bill towards a better fate than the one that was defeated two years ago.

A refund on a pair of jeans? In Israel? Who would have thought!

3:00 PM comes, no technician. 4:00 PM, then 5:00 PM. You’ve just wasted half a day before your fix-it guy comes waddling in at quarter to 6.

Tzvi Szajnbrum

Tzvi Szajnbrum, a lawyer who runs the helpful Voleh (that’s “virtual oleh”) website aimed at helping new immigrants to Israel, summarized the new law and has given me permission to reprint his comments here on my blog.

He points out that we’re only talking about service in your home or workplace, not service you receive at a store. And the law is primarily during the warranty period.

Here are the main provisions according to Tzvi:

1. The provider must stipulate a day and an hour the service will be given.
2. The waiting time for a technician cannot be longer than two hours more than the given time. The grace period is two hours only.
3. The provider is entitled to offer the consumer to wait for a phone call in place of giving a specific time, on condition that the waiting time of the consumer in his home will not be longer than 2 hours. The provider must also clarify to the consumer that this method is only a suggestion, and the consumer is not obligated to accept this.
4. The provider is entitled to notify the consumer until 8:00 PM the day before the specified day of arrival of any change of time of services or a cancellation.
5. The above-mentioned rule was not made to infringe on the rights of the consumer. Any existing rule concerning the rights of the consumer before this new law came into effect will not be affected. As an example: the law stipulates that from the moment the consumer asks for a technician to repair a washing machine, the provider has 3 working days to provide this service. For a freezer or a refrigerator, it is one day. So let’s say on Sunday the consumer asks for service to repair a washing machine. The date is settled for Wednesday morning. In this case, the provider cannot call on Tuesday until 8 pm to cancel the visit for Wednesday, because this will clash with the consumer’s rights to receive this service within 3 days.

In breaching the above rules, the consequences for the providers are:

1. The consumer is entitled to compensation without having to prove any damages. To clarify this point, let’s say the consumer has two refrigerators. One breaks down and the consumer calls for a technician, who does not appear within the specified time. Even though there were no damages to the consumer, because he could easily use the second refrigerator, he is still entitled to the compensation stipulated by law.The consumer will be entitled to more compensation if he had actual unlimited damages of any kind. In this case, the consumer is obligated to give proof of the damages. As an example, the consumer did not have a refrigerator in working condition and the technician did not arrive in the stipulated time, and as a result there was an actual loss (the food spoiled, etc.). In this case, the consumer can sue the provider by the Law of Damages for unlimited damages, if he can prove it.
2. A delay of more than 2 hours of the stipulated time of arrival (4 waiting hours in total), entitles the consumer to compensation of 300 shekels.
3. A delay of more than 3 hours of the stipulated time of arrival (5 waiting hours in total), entitles the consumer to compensation of 600 shekels.
4. If the time specified was according to what was said in clause 3 above (waiting for a phone call) and there was a delay for more than 2 hours, or the provider did not explain to the consumer that he has the right to refuse this proposition, this entitles the consumer to 300 shekels compensation.
5. The provider is entitled to offer monetary compensation, products or any kind of coupon, etc., for the same amount, but only with the agreement of the consumer. The burden of proof that the consumer agreed to anything other than monetary compensation is on the provider.
6. In the case that the provider could not anticipate any delay in providing the service, or could not know in advance (for example, if the technician had a bad car accident on the way to the consumer’s home or extreme and severe weather conditions that prevented the technician from arriving) then the provider is exempt from providing compensation.

How do you actually receive your compensation?

When claiming compensation (and not the damages stipulated in paragraph 7), contact the provider by phone or fax. Always keep a record of all paperwork, phone calls, etc. If the provider refuses to pay, the consumer can either contact our organization and we will write a letter or you can sue using the Small Claims Court.

You can visit Tzvi’s website where there is an enormous amount of valuable tips and tricks from family law to driver’s training. Thanks Tzvi!