Court Approves Class Action Against Osher Ad Over Price Labeling

The Central District Court has approved a class-action lawsuit against "Merav - Mezon Kol", the operating company of the Osher Ad supermarket chain, regarding the requirement to display prices directly on products. Judge Iris Rabinowitz-Baron ruled that the plaintiff "met the required evidentiary threshold at this stage to establish that there is a reasonable prospect it will be proven that the chain breached its duty to display the price on products sold by it."

The lawsuit, filed in February 2023 through attorneys Moshe Ben-Dror and Yinon Chimi from the Ben-Dror, Chimi & Co. law firm, claims that Osher Ad systematically fails to present total prices on individual goods. The plaintiff noted that during a shopping trip on December 19, 2022, several items lacked price markings on their packaging or units, arguing that the absence of direct labeling complicates price checks for consumers.

The Chain's Defense and Legal Arguments

In its defense, the supermarket chain argued that businesses are not legally required to label every single item if goods are displayed within a container, such as a refrigerator, provided that a clear sign or label is attached nearby. Osher Ad also highlighted its implementation of mobile apps, smart shopping carts, and handheld terminals in stores, allowing customers to easily check item prices.

However, the court rejected these arguments for the preliminary stage, emphasizing that the use of containers or technological tools does not exempt a retailer from statutory labeling obligations when items are packaged.

"The fact that products are sold inside a 'container' does not in itself grant an exemption from labeling the price on the items themselves where the items are packaged," Judge Rabinowitz-Baron stated.

Next Legal Steps and Public Reaction

The certified class action covers any individual in Israel who purchased or sought to purchase products at Osher Ad branches without clear price markings on the items or packaging during the seven years preceding the lawsuit filing. The parties may proceed with further litigation or reach a settlement.

Attorneys for the plaintiff welcomed the decision, stating: "Price labeling is crucial for consumers, especially amid the rising cost of living in recent years." Meanwhile, Osher Ad expressed regret over the ruling, stating that class actions are frequently used to pressure businesses, and maintained that it acted in good faith based on a reasonable interpretation of the law.