Legislation9/16/2026

Knesset Discusses Protecting Small Businesses from Class Actions

The joint committee of the Constitution, Law and Justice Committee and the Economic Affairs Committee discussed an amendment to the Class Actions Law that could block the possibility of filing such actions against small businesses. The main dispute is whether to define a small business as one with annual turnover of up to NIS 9 million or up to NIS 20 million; the source does not report a final decision.

Key facts

•Body: The Knesset’s joint committee of the Constitution, Law and Justice Committee and the Economic Affairs Committee
•Law: Class Actions Law
•Turnover thresholds under discussion: NIS 9 million and NIS 20 million
•Proposal regarding accessibility violations: NIS 5 million
•Prior-notice period: 60 days
•The source does not state that a final decision was made

What the Amendment Proposes

Under the updated bill, it would not be possible to file a class action against a business defined as small based on its turnover. The discussion is taking place during an election period, with special approval from the Agreements Committee, which includes representatives of the coalition and the opposition. The agreement stipulates that only the provisions protecting small businesses will be advanced, even though other issues remain in the updated text.

The Dispute over Turnover

Business representatives, committee chair MK Simcha Rothman, the Federation of Israeli Chambers of Commerce, and Lahav, the Israel Chamber of Independent Organizations and Businesses, support a threshold of up to NIS 20 million. Consumer representatives and the Commission for Equal Rights of Persons with Disabilities propose limiting it to NIS 9 million or a lower amount. A threshold of NIS 9 million was brought before the committee, but according to the source, it was not given final approval.

Accessibility and Consumer Rights

Organizations representing people with disabilities fear that exempting small businesses will weaken compliance with accessibility requirements. A representative of the organization “Disabled, Not Half a Person” proposed a threshold of NIS 5 million for material accessibility violations, while the chair of the Polio Disabled Association opposed any limitation in this area. Representatives of the Consumer Protection Authority and the committee’s legal counsel also warned that full immunity could encourage violations and harm a broad group of citizens.

Prior Notice and Payments

The proposal requires prior notice to the business: for a series of violations, an action could be filed only after 60 days if the violation has not been corrected. This applies, among other things, to package weight, spam, product labeling, price per unit of measure, and accessibility requirements. It is also proposed to change the method for determining representative awards and attorneys’ fees and, in certain cases, to personally notify class members of compensation if this is possible and does not involve disproportionate expenses.

What this means for you

If the amendment is enacted, some businesses may be fully protected from class actions, and for certain violations they will first receive 60 days to correct them. For small-business owners, this could reduce the risk of costly legal proceedings, but consumers and people with disabilities would find it more difficult to obtain collective compensation. The precise implications will depend on the final turnover threshold and the exceptions that are established.

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