IsraelLawCan a foreign company be sued in an Israeli class action?
Israeli class actions run in two stages. The plaintiff first files a certification motion asking the District Court to approve the case as a class action, and the defendant responds on the merits and on whether a class is the right vehicle at all. Certification is where most cases are effectively decided, and Section 9 of the law lets a defendant that stops the challenged practice after filing ask the court to dismiss the motion, which is why so many disputes end in a change of terms rather than a payout. Approved cases go into a public register kept by the Courts Administration, so competitors and journalists can read them. Where class members cannot be identified individually, the court directs the award to a public purpose instead.
Foreign companies tend to underestimate two features. The first is unsolicited marketing: Section 30A of the Communications (Telecommunications and Broadcasting) Law 5742-1982 sets statutory damages of up to NIS 1,000 per message with no proof of loss required, and email campaigns reaching Israeli addresses have produced a steady stream of filings. The second is that Israeli consumer protection travels with the customer, so terms of service selecting a foreign law and a foreign forum are frequently struck down as unfair conditions in a standard contract. Companies selling into Israel should review their opt-in flow, Hebrew disclosures, and price display before a motion arrives. Our guide on data protection for businesses in Israel covers the privacy side.
- Governing law: Class Actions Law 5766-2006; the permitted causes of action appear in its Second Schedule
- Competent authority: District Court (Beit Mishpat Mehozi); certified and pending cases are listed in the public class action register maintained by the Courts Administration
- Statutory spam damages: up to NIS 1,000 per unsolicited message under Section 30A of the Communications (Telecommunications and Broadcasting) Law 5742-1982, without proof of loss
- Two-stage process: certification motion first and merits second; the certification stage alone commonly runs 12–24 months
- Representative and counsel awards: set by the court under Sections 22 and 23 of the law, normally as a share of the recovery rather than a fixed figure
- Service on a foreign defendant: permitted under the Civil Procedure Regulations 5779-2018 where the claim concerns an act, contract, or asset connected to Israel
From the full guide: Data Protection Law in Israel for Businesses and Foreign Companies
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