A request for a class action in the sum of NIS 45 million was filed today in the Lod District Court against Rami Levy, on the grounds that Rami Levy misled consumers and sold impure honey. The application claims that the packaging of the product states that it is 100% honey, when in fact a laboratory test presented by the petitioners determines that it is honey to which a sweetener called psicose-D (Psicose) has been added. Rami Levy categorically rejects the claims and claims that tests have been conducted that negate this claim
The request for a class action lawsuit is based on an announcement by the Honey Council last week, which claimed that the findings of a quality inspection at the German Intertek laboratory show that honey imported by Rami Levy Shivuk Hashikma contains ingredients in psicose, sugar syrup, which do not meet the European standard and do not constitute pure honey.
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The Ministry of Agriculture approved the import of 500 tons of honey duty-free ahead of Rosh Hashanah, despite the fact that the Honey Council said that this step had been taken despite the fact that the council reported that there was enough honey for the High Holidays. The tender for importing honey was won by 5 retail chains – Victory, Rami Levy, Shufersal, Osher Ad and Yohananoff.
The Rami Levy Shivuk Hashikma chain marketed the imported honey first, at a price of NIS 15.90 per 900 grams. That is, about NIS 17.5 per kilogram, while the average price of a kilogram of honey in Israel is NIS 36. The Honey Council argued at the time that the low price offered by Rami Levy Shivuk Hashikma was unreasonable compared to the cost of producing pure and healthy honey, according to the worldwide honey price index. Due to this price difference, the Honey Council decided to send the imported honey for quality testing at the Intertek international laboratory in Germany.
The honey alleged in the lawsuit, photo: Honey Council
The lawsuit claims that the "red light" that went on at the Honey Council and led to a quality check should have also gone on for Rami Levy, a veteran and experienced businessman and owner of a public company. The lawsuit also states that Rami Levy removed the main Israeli competitor, Yad Mordechai, from the shelves at the height of the demand period for honey, and thus may have violated competition law as well.
"Rami Levy must be held accountable for his conduct and actions. Starting with the consumer deception of selling and marketing honey that ostensibly contains only honey, when in fact it is not; continuing to exploit monopolistic power by pushing a major competitor off the shelves during peak consumption in order to increase profits for honey and deny its customers freedom of choice; By beeping at the law and the terms of the tender process in which he took part and in which he enjoys tax benefits worth many millions of shekels – all on the back of the represented group on whose behalf they are petitioning in this application," the petitioners wrote in the application. The lawsuit was filed by attorneys Dr. Guy Carmi, Kfir Kleinman and Nofar Teplitz of Dr. Guy Carmi Law Offices.
As stated, Rami Levy rejects the claims outright and claims that tests have been conducted that negate this claim. The chain's response stated: "The Rami Levy Shivuk Hashikma chain has reduced honey prices by more than 100%. The Honey Council, along with all the surrounding entities, including those imposing tariffs and taxes, oppress the public. We will do everything to lower prices and fight the cost of living.
The prices of Mordechai hand honey were very expensive and were not removed from the shelf. The Rami Levy Shivuk Hashikma chain has all the relevant certificates showing that the honey is natural and pure." Along with the network's response, it should be noted that several test results were sent on its behalf.
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