GOVERNMENT AGAINST BOOKING AND THE FATAL NETWORK: The price of a holiday without VAT - consumer deception
Many book vacations through the booking booking giant, which indicates the price of the holiday without VAT, which is added only at the time of payment.
Ziv Reinstein
09/05/2022
Monday, 09 May 2022, 10:02 Updated: 10:40
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Leonardo Hotel Jerusalem Boutique Hotel (Photo: PR, Fattal)
Have you booked a hotel or vacation at the booking booking giant, and like many have found out that the price you received does not include VAT? You are not the only ones, and now as part of the government's policy to protect the interests of consumers in Israel Class action lawsuit against Fattal Hotels,
Booking.com
Com
Israel and
Booking.com
Additional charge, not included in the price.
In addition, it has been argued that the Company's Articles of Association contain discriminatory conditions that must be repealed.
With respect
to Fattal Hotels
, The plaintiffs claimed that it cooperates fully with Booking.com;
Allows its customers to book the hotel services it operates through its website and generates profits from those bookings and is aware of the customers' distress.
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Shows vacation prices without VAT. Booking (Photo: ShutterStock)
In the position submitted, the Attorney General noted that the Consumer Protection Law stipulates that only the total price of a product or service, including taxes and any mandatory payment that the consumer cannot waive as part of the contract, must be published and stated.
The rationale on which the law is based is that the "total price" is the final price that the consumer will pay, and that this price will be a clear price, that does not require the consumer to make calculations, does not confuse or mislead him and helps him compare the various offers and easily make an informed decision. .
According to the Attorney General, failure to present the overall price to the consumer from the initial stage in which the consumer conducts the tests and makes a decision on whether the transaction is relevant and worthwhile for him constitutes misleading consumers and violates the provisions of the Consumer Protection Law.
The position states that the Booking.com website is specifically aimed at Israeli consumers - the appeal is made in the Hebrew language to consumers and the price is published in Israeli currency.
This means that Booking.com operates in practice in Israel and must act in accordance with the provisions of the Consumer Protection Law.
To the extent that it can no longer know at the marketing stage whether it is a consumer who is liable to pay VAT, in a situation where a platform aimed at Israeli consumers is operated, it must advertise and specify the total transaction price for these consumers, starting from this stage in accordance with Israeli law
. The fact that the price is advertised without VAT and that the consumer only discovers this fact at the last minute or at least after investing his time in searching for the relevant and affordable deal for him, as it "attracts" many consumers to order the service because the price is predicted to be cheaper. ".
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"You directly benefit from the revenue from those transactions."
Hotel in the Fattal hotel chain (Photo: Aya Ben Ezri)
The claim against Fattal: "The violation was known to her"
Regarding Fattal's claims that it is not a partner, does not support and does not enjoy Booking.com's policy of presenting the prices of services without VAT and therefore it should not be held responsible, the Attorney General believed that being the provider of the service, and at least in some cases charges The funds for the services it provides to consumers, and taking into account the claim that the breach was known to it and that it directly benefits from the revenues in respect of those transactions - there is a possibility that a liability will arise against the consumers.
The Attorney General insisted that the choice of law (the question of which law should be judged) in the circumstances of the case is a discriminatory condition, among other things, so that the reasonable consumer can understand the meaning of that condition - he will have to hire the services of a foreign law expert. On the practical and economic side);
The choice of law stipulation refers to a law that is not accessible and clear and does not mention the cogent provisions of the Consumer Protection Law and in all it misleads surfers into assuming that they have no rights under local law.
Regarding the stipulation of the place of jurisdiction (stipulation according to which disputes regarding the contract should be discussed only abroad, where Booking.com
chose), the Attorney General clarified that this is discriminatory.
"A (civil) and formulated in collaboration with the Civil Department of the State Attorney's Office, Counseling and Legislation (Civil Law) and the Consumer Protection and Fair Trade Authority.
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