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46570-06-18 Booking.com Israel online hotel reservations ltd V. The Israeli consumer protection and fair trade authority: Israeli court annuls Booking.com 2,508,000NIS fine

9.2.2020; 46570-06-18 Booking.com Israel online hotel reservations ltd V. The Israeli consumer protection and fair trade authority (Magistrate court in Tel Aviv-Jaffa, Israel: Israeli court annuls Booking.com 2,508,000NIS fine

 

  • On the 10.4.2018 The Israeli consumer protection and fair trade authority imposed a 2,508,000NIS fine on the Israeli subsidiary of the Dutch company Booking.com.
  • The consumer protection authority claimed, that between the years 2016-2017, Booking.com, has not presented the total and full price to the consumers. The consumer protection authority claimed that, Booking.com displayed accommodation services price without the V.A.T element.
  • Thus, the consumer protection authority imposed the fine for alleged breach of articles 14C (A) and 17D of the Israel consumer protection law, 1981.
  • com appealed the decision to the Israeli Magistrate court in Tel Aviv-Jaffa.
  • com Israel claimed, inter alia, that the Israeli subsidiary is not involved in online marketing of accommodation services; it does not advertise prices and that it does not own or operate Booking.com website and mobile application. Therefore, the company is not authorized and technically cannot to cure the alleged breach of the law.
  • Court examined the terms and conditions of Booking.com application, and found out that the Israeli branch of Booking.com provides technical support for the Dutch company Booking.com. Accordingly the Israeli subsidiary does not provide any accommodation services and does not display the price and rates of the services. Therefore, the Israeli subsidiary cannot be fined for actions allegedly made by someone else.
  • Court mentioned also, that the consumer protection authority itself did not claim that Booking.com breached any law.
  • Court accepted the appeal and annulled the fine levied on Booking.com Israel.

The above information is not intended to constitute legal advice and cannot rely upon. One should seek specific professional advice for the application of the law in any specific situation.

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