The obligation to display prices remains a mandatory obligation | Barnea Jaffa Lande & Co.

Recently, the issue of pricing in supermarkets and grocery stores has gained attention. This follows a public consultation by the Consumer Protection and Fair Trade Authority (CPFTA) seeking input on the move to digital price displays as part of the “What’s good for Europe is good for Israel” reform.

According to the consultation document, switching to digital price displays could reduce operating costs, eliminate price differences between shelf and checkout, and improve service and the shopping experience. However, concerns have been raised that eliminating mandatory price stickers in favor of digital displays would allow grocery chains to change prices more easily, making it harder for consumers to compare prices effectively.

background

At the start of Operation Iron Swords, a temporary regulation exempted food retailers from the obligation to affix price stickers to products. This exemption was granted due to severe labor shortages, which raised concerns among retailers about potential fines for non-compliance. But even after the staff shortage eased, the exemption was extended and only lifted again due to public criticism.

Legal requirements

Under the Consumer Protection Act, companies are required to display prices for all products and services offered for sale.

This means that the obligation to display price stickers on each individual product applies not only to grocery stores, but to all types of retail outlets, provided that they offer goods or services for sale.

Until the Consumer Protection Act is changed to enable digital price labeling, all companies must continue to label the prices of their products and services. Furthermore, even if adopted, the amendment will provide an alternative to the existing price tag system and will not completely eliminate the obligation. Failure to comply may result in legal proceedings, including class action lawsuits and fines imposed by the CPFTA.

Why is this important?

Pricing information is essential for consumers to make informed decisions about potential transactions. By showing the price of a product or service in advance, consumers can:

• Understand the costs of a transaction in advance.
• Compare prices effectively and make informed purchasing decisions.
• Make sure the purchase price matches the price displayed on the product.

What’s next?

Following media reports that some food retailers are no longer complying with price labeling requirements, the Minister of Economic Affairs has directed the Consumer Protection Agency to step up enforcement efforts in this area. At the same time, the authority clarified that no changes have been made to the current price labeling requirements.

In conclusion

So far there have been no changes to the regulations on price labeling in stores. Businesses that offer goods for sale must continue to place price stickers on all products, regardless of the type of goods sold or the size of the store, to avoid fines and class action lawsuits.