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Bethel Finance news:
The small print: Regulations on the font size of restrictions and reservations in ads and consumer information, such as catalogues, have finally been passed and will come into effect on January 1, 2012. The regulations stipulate that the font size must be at least 30% of the largest font in the announcement, and no smaller than 2 mm.
Cancellation of transactions - for flights too: A few months after regulations came into effect on the cancellation of transactions, they are joined by the option of cancelling airline tickets. However, it is not possible to cancel full service packages for foreign holidays, such as hotels. The regulations apply to purchases made in person; the regulations on reservations made by phone or online, which allow cancellation within two weeks, were left unchanged.
Choose when you pay: An amendment to the Consumer Protection Law (5741-1981) allows consumers to choose one of four dates for the monthly payment on their credit cards and standing bank orders. The amendment comes into effect on January 1, 2012.
Payment of monthly bills without commission: Another amendment to the Consumer Protection Law that will also come into effect on January 1 allows customers of government supervised companies, such as Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and the gas companies, to pay their monthly bill in cash without a commission. The amendment aims to correct the current situation in which some goods and services providers require customers to use only one method of payment, such as credit card or bank standing order, and sometimes even charge a fee for the service.
Warranty sticker: In June 2012, an amendment will come into effect mandating the placement of warranty labels on products, in addition to the regular certificate, to ensure that service will be provided during the warranty period, even if the certificate is lost. The label will state the warranty period, and cannot be switched between products.
Telecommunications
In telecommunications, 2011 was a big year for consumers. A number of consistent measures became practice, changing consumers' status, especially for mobile services. Ministry of Communications figures show that the consumer has woken up. More than 234,000 subscribers switched carriers during the third quarter, up from the quarterly average of 100,000 in recent years. The ministry views the 134% increase in the churn rate as a clear sign that competition has increased and that power is moving toward the customer.
Mobile carriers' average revenue per user (ARPU) fell 20% from NIS 135 per month to NIS 110. The current average cost of a call is NIS 0.35 per minute. Large business customers (such as government employees who pay NIS 0.07 per minute for calls) have the greatest power, with private customers paying the difference. The Ministry of Communications believes that the entry of new carriers into the market will cut the average cost of a call to NIS 0.20 per minute.
16 consumer failures by carriers were handled during 2011. Within a month, the Ministry of Communications will probably publish a hearing for the handling of other consumer failures. Below are the main things that were changed during the past year:
* Connectivity fees cut: In January 2011, after a long debate, inter-network connectivity fees were slashed from NIS 0.25 to NIS 0.07.
* Termination fines cancelled: A formula was finally found for early termination fines. The new rules initially applied to mobile carriers, and were later expanded to cover Internet, telephony, and cable and satellite television services.
* Linkage cancelled: Mobile carriers were also required to offer the same air-time benefits and handset subsidies to customers who bought their handsets elsewhere.
* Commitment period: The commitment period required by mobile carriers and cable and satellite TV providers has been halved from 36 months to 18 months. Companies are banned from raising rates during the commitment period.
* Content services: One of the important changes, which aims to corral the serious problem of charges for mobile content services, requires mobile carriers to obtain customers' prior consent for the provision of any service, including content services.
Pending legislation
The following is a selection from among many bills in the area of consumer protection now in various stages of the legislative process:
The contractor will compensate: An amendment to the Sale Law states that a contractor who delivers a home more than 60 days late will pay compensation from the first late day. Status: the Knesset plenum passed the amendment's second and third readings, and it has come into effect.
More cable and television channels: The "plus era" has expanded the number of channels available on DTT set-top boxes from five to eighteen, including all radio channels, the music channel (24), the Russian-language channel (9), the new Education Television (23), the Arabic channel, Jewish Heritage channel, News channel, and HD channel. Status: passed by the Ministry of Communications.
Fines for overcharging and refusing to terminate subscriptions: The Ministry of Communications wants to fine telecommunications providers 1% of their profits, on a scale, for damage to even one customer. Violations include overcharging, delayed refunds, refusal to terminate a subscription, and making changes without the customer's knowledge.
Stricter enforcement: An amendment for stricter enforcement of consumer protection laws through financial sanctions and other means. Status: the Knesset plenum passed the amendment in its first reading, and it is now in the Economic Affairs Committee to be readied for its second and third plenum readings.
Compensation for cancelled flights: A bill setting the terms and conditions for a passenger's eligibility for compensation for the cancellation or delay of a flight, or for not being allowed to board. Compensation includes free assistance, refund of expenses, an alternative ticket, and financial compensation (MK Ahmed Tibi (Raam-Taal)). Status: the Knesset plenum passed the bill in its first reading.
Restrictions on benefit programs: A bill to prevent the loss of a consumer's remaining benefits if the operator of the benefits plan fails to notify the consumer properly about the expiry of the plan, or fails to provide him or her sufficient time to use the benefits, or offers only a limited range of goods (MY Eitan Cabel (Labor)). Status: the Knesset plenum passed the bill in its pre-reading.
Clarity from banks: Banks will be required to provide customers with information clarifying in layman's terms the main significance and consequences caused by a demand for the immediate repayment of a loan, and the reasons for the demand (MK Uri Maklev (United Torah Judaism)). Status: the Knesset plenum passed the bill in its pre-reading.
School textbooks: Prices for schoolbooks and the publication of new editions will be supervised by the minister of education. New editions will only be approved if there has been a change in the curriculum (MK Uri Yehuda Ariel (National Union)). Status: the Knesset plenum passed the bill in its pre-reading.
Restrictions on advertising alcohol: Ads will only provide basic details and will be accompanied by a warning, "Excessive alcohol consumption is life-threatening and harmful to the health." Television and radio shows for children will not air ads for intoxicating beverages. Status: the bill has been readied for its second and third readings by the Knesset plenum.
Filtering Internet content: Internet providers must provide filters against offensive content for free to anyone who requests them (MK Alex Miller (Israel Beiteinu)). Status: the Economic Affairs Committee has approved the bill for its second and third readings by the Knesset plenum.
Home renovations: A bill requiring the licensing of home repairmen (MK Ofir Akunis (Likud)). Status: tabled at the Knesset.
Snacks at checkouts: A bill banning retailers from placing snacks at checkout counters. (MK Danny Danon (Likud)). Status: tabled at the Knesset.
Bank fees: A bill exempting current bank accounts with a positive balance from paying fees, and cancellation of the minimum fee (the Consumer Protection Council and several MKs). Status: tabled at the Knesset.
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