Significant reform: class action lawsuits against small businesses will not be allowed

A joint committee of the Constitution and Economics Committees approved for second and third readings a reform in class action lawsuits, prohibiting the filing of class actions against small businesses with an annual turnover not exceeding nine million shekels. Additionally, a requirement for prior notice to the business was established for five causes of action, including the Spam Law, with 60 days to remedy the violation.

A joint committee of the Constitution and Economics Committees approved today (Thursday) for second and third readings a significant reform in class action lawsuits. Under the reform, class action lawsuits cannot be filed against small businesses with an annual turnover not exceeding nine million shekels, with the threshold linked to the index. Additionally, a requirement for prior notice to the business was established for five causes of action, including the Spam Law, with 60 days to remedy the violation, in a way that prevents filing a class action if the violation is corrected. For certain accessibility causes, prior notice will be required for businesses with a turnover of up to 50 million shekels. Furthermore, if a request to approve a class action is filed in cases where prior notice was required without such notice, the court will order the dismissal of the request. Shachar Turjeman, President of the Federation of Israeli Chambers of Commerce, welcomed the decision and said: "We promised to put an end to the extortion of class actions and to protect small and micro businesses. Today it officially begins."