Legislation10/16/2026

Knesset Committees Backed Protection for Small Businesses Against Class Actions

The joint committee of the Constitution, Law and Justice Committee and the Economic Affairs Committee approved an amendment to the Class Actions Law for second and third readings. The amendment is intended to exempt businesses with annual turnover not exceeding 9 million shekels from such lawsuits and to establish a period for voluntarily remedying certain violations.

Key facts

•Stage: Approved for second and third readings
•Threshold for the full exemption: Annual turnover of up to 9 million shekels
•Period for remedying certain violations: 60 days
•Threshold for prior notice in accessibility matters: Up to 50 million shekels
•Statute: Class Actions Law
•Source updated: October 16, 2026

What the Committee Approved

If the Knesset plenum approves the amendment, class actions may not be filed against businesses with annual turnover not exceeding 9 million shekels, including for failure to provide accessibility accommodations for people with disabilities. At this stage, the bill has only been approved by the committee for second and third readings; it has not been enacted into law.

When Businesses Will Be Given 60 Days

The amendment requires prior notice to a business and provides 60 days to remedy certain violations. These include sending spam, including packaging weight in the price of a product sold by weight, and labeling violations involving details about the manufacturer and importer, the country of manufacture, quantity and contents, and consumer information in Hebrew. For claims concerning failure to provide accessibility accommodations, a similar prior-notice requirement and a 60-day period were established for businesses with annual turnover not exceeding 50 million shekels.

The Accessibility Dispute

Organizations that protect the rights of people with disabilities opposed fully excluding businesses with turnover not exceeding 9 million shekels from the scope of class actions. They argued that such actions serve not only to obtain compensation but also to ensure enforcement of the Equal Rights for Persons with Disabilities Law. However, these organizations did not oppose the 60-day period for businesses with turnover not exceeding 50 million shekels to remedy accessibility violations.

The Position of Small Businesses

Attorney Roee Cohen, president of Lahav, the Israel Chamber of Independent Organizations and Businesses, welcomed the decision as a means of reducing unjustified lawsuits and abuse of the legal process. The organization sought broader protection—an exemption for businesses with turnover not exceeding 20 million shekels—but the committee approved a threshold of 9 million.

What this means for you

If the amendment is approved by the Knesset plenum, consumers and people with disabilities will not be able to initiate class actions against businesses with turnover not exceeding 9 million shekels, including in disputes concerning accessibility. For certain violations, before filing a class action it will be necessary first to notify the business and give it 60 days to remedy the violation. These changes have not taken effect as long as final approval has not been granted by the plenum.

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