Illegal handling fees for FedEx shipments to Israel

Have you ordered a product from abroad and were required to pay exorbitant amounts in order to "release" it and receive it in your hands? This is illegal, unless you agreed to it in advance and explicitly.

This is evident from the decision of the Authority for Consumer Protection and Fair Trade, which announced that it would fine the FedEx company for collecting additional amounts from customers without obtaining their approval.

The Authority informed the company FedEx (Fedex Express Israel International Ltd.) of its intention to impose a financial sanction on it in the amount of NIS 368,000, a reduction of 20% from the original fine which was NIS 480,000 and due to the fact that this is the first fine imposed on the company.

In the Authority's announcement, it was explained that FedEx provides air shipping services that include collecting shipments from abroad ordered by consumers in Israel, delivering them to Israel and delivering them to the orderer's address. Consumers who purchased products from various websites abroad were required to pay the taxes and fees stipulated by law after the product's arrival in Israel, as well as Additional payment to the company for various services such as handling, handling and storage fees - without them explicitly asking to receive services unless and without their consent being sought.

The investigation was opened after receiving a series of consumer complaints on the subject, and it emerged that the company performed the service and only then contacted the consumer and asked him to pay for it. In doing so, the company harmed the consumer's ability to make a decision on whether to enter into a transaction with the company, which amounts to unfair influence according to the Consumer Protection Law. The investigation also revealed that some consumers paid hundreds of shekels for the company's services.

This is a violation of Section three of the Consumer Protection Law, which prohibits harming the consumer's ability to make a decision on whether to enter into a transaction with the dealer, which constitutes unfair influence. Section 3(b)(8) of the law states that providing a property or service to a consumer for a fee other than according to his express request is an unfair influence.

It will be emphasized that the company has a right of argument according to the provisions of the Consumer Protection Law to argue both against the intention to impose a financial sanction and regarding its amount, within 45 days from the date of delivery of the notice.

FedEx's response: "We were surprised, the company has weighty defense claims based on the law and the ruling"

FedEx Israel stated: "We were very surprised to receive the Consumer Protection Authority's notice of its intention to impose a financial sanction on the company, this is two years and more since it contacted us on the matter. The basis for the authority's claims is completely wrong and even contradicts Israeli consumer protection laws.

"Fedex is extremely careful to comply with the requirements of the law and consumer protection regulations, acts as is customary in its field of activity and in accordance with previous rulings of the district court on the subject.

"The publication itself is misleading to think that FedEx's actions are illegal while we are only at a preliminary stage where the arguments of FedEx's response to the Authority's claims have not yet been submitted. Even the Authority's subsequent decision does not constitute the end of the story and FedEx will have the right to appeal to judicial bodies to appeal the administrative authority's decision.

"We believe that the publication of the procedure before receiving a response from FedEx is inappropriate, and presents the readers with a misleading representation as if the law has already been decided, while the truth is that FedEx has weighty defense claims based on the law and the ruling.

"Fedex will continue to serve its customers in the most reliable, fast and transparent manner, as it has been doing for the past decades to connect the Israeli economy to the global network."