Dispute over $30 leads to wave of class-action lawsuits against travel agencies

The Supreme Court ruled that travel agents are prohibited from charging handling fees for services to a passenger whose flight was canceled. Since the ruling, five class-action lawsuits have been filed against various agencies. Issta, against which the original lawsuit was filed, is requesting a further hearing and claims the interpretation is erroneous.

A dispute over charging a $30 handling fee has led to a wave of class-action lawsuits against travel agencies in Israel. The Supreme Court, in a panel of three female justices headed by Gila Kanfi-Steinitz, ruled about a month ago that travel agents are prohibited from charging handling fees for the service they provide to a customer seeking refunds from an airline that canceled their flight. Since the ruling, five motions for class-action certification have been filed against various agencies. Issta, against which the original lawsuit was filed, has submitted a request for a further hearing, arguing for an erroneous interpretation and significant financial implications. Attorneys Shirly Katzir and Amir Varon from the Fisher (FBC) law firm explain that agents who handled the receipt of funds for clients are now exposed to demands for retroactive restitution of wages paid in recent years. Issta argues in its request that the ruling changes the existing legal situation, and that the Consumer Protection Authority and the Ministry of Transport presented a position allowing the charging of handling fees.