Osher Ad Changes Rules: New Payment Mechanism for Bags at Self-Checkouts

The Osher Ad chain has launched a pilot project at its Haifa branch, installing a new technological mechanism at self-checkout counters. This move is designed to prevent customers from taking carrier bags without payment by linking the bag dispenser directly to the store's scanning and payment system.

Under this new system, customers are required to scan a dedicated barcode located on the bag dispenser using the self-service product scanner. Once scanned, the dispenser releases one bag, and the charge is automatically added to the customer's bill. Those who do not perform the scan will be unable to retrieve a bag. At this stage, the pilot is limited to the Haifa branch, though management is considering expanding the initiative to other locations. No changes are expected at standard, staffed checkout counters.

Charging for carrier bags in large retail chains is not a corporate policy, but a requirement of the Law for the Reduction of the Use of Disposable Carrier Bags, approved by the Knesset on March 29, 2016, and effective since January 1, 2017. The law aims to reduce waste by limiting the free distribution of bags and imposing a mandatory levy on their sale.

Under the law, a "disposable carrier bag" is defined as a bag intended for carrying products with a thickness between 20 and 50 microns. Large retailers must pay a levy of 8.54 agorot for every bag sold, and customers must be charged at least the amount of the levy plus VAT. These funds are transferred to the Cleanliness Maintenance Fund to support environmental initiatives.