Consumer Class Actions: Are they a Solution for Enforcing Consumer Rights? The Israeli Model

תקציר

Class actions were introduced into the Israeli legal system in order to overcome the difficulties in the enforcement of consumer laws. Despite extensive consumer legislation during the 1980’s, consumer laws were not enforced until the mid 1990’s. Only since the incorporation of class action procedures in the Consumer Protection Law in 1994, have consumer actions become more common. The introduction of class actions under the Consumer Protection Law (CPL) led to a revival of consumer protection law. As a result, legal discourse in the field of consumer law has completely changed. Nonetheless even after 1994, more than 90% of class action applications were dismissed at the early stages. This paper analyses the reasons for the poor results of this procedure, and suggests reform by amending the CPL. The conclusion presented in this paper is that consumer class actions have great potential, but their correct implementation depends on a better understanding of the purpose of consumer legislation.