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Update on Getting Your Money Back

Cash Register

Cash back at the Israel?

I wrote a couple of months back on a proposal by the Ministry of Industry, Trade and Labor to implement new laws making it easier to get your money back on purchases made in Israel. In my previous post, the backing was primarily from two lawyers within the ministry.

Now head of the ministry, MK Benjamin Ben-Eliezer, has thrown his weight behind the initiative and is taking the proposed change to the Knesset Economic Affairs Committee.

Haaretz presents additional details on how the law would work.

The return of money must be made in the same manner as it was paid, therefore credit card refund for those types of purchases, and cash for checks and cash purchases.

The purchase must have been over NIS 50 and you need to bring in a receipt or proof of purchase.

Clothing and shoes must in their original packaging and must be returned within 24 hours. Underwear can’t be returned at all.

For most other goods and services (including gifts and purchases with gift certificates), the return period is two weeks.

The list of covered services is generous and includes lodging; transportation; entertainment; courses; aesthetic and cosmetic services; vacation packages; communications services such as cellular telephones; memberships in gyms or spas; and gambling and dating services, among others.

Excluded from the proposed new law: furniture that is installed in the customer’s home or merchandise produced especially for the customer. Food, drugs and nutritional supplements are also not included.

And of course – this being Israel – there are a few catches. For example, every return of a product or cancellation of a service will cost the consumer 5% of the value of the transaction or NIS 100, whichever is less. In some cases, such as electrical and electronic items, the store can charge a 10% cancellation fee if the original packaging has been opened.

Still, it’s a big step forward. Let’s hope “Fuad” (Ben-Eliezer’s nickname) can make it so.

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