International companies who do not have a physical presence in Israel and engage in online transactions with Israeli consumers are discovering a surprising fact: they may be at legal risk.

The Israel-America Chamber of Commerce (AmCham Israel) has launched a task force to address this fast-evolving legal risk of being subject to Israeli consumer protection law.

Recent Israeli Supreme Court decisions have affirmed that international companies who do not have a physical presence in Israel and engage in online transactions with Israeli consumers may not rely on “choice of law” clauses to exempt themselves from Israeli legal jurisdiction.

The most prominent case to date is the Agoda case. While currently under review following a request for an expanded panel, the Court’s original ruling emphasized that foreign companies without a physical presence in Israel that engage in online transactions with Israeli consumers cannot circumvent Israel’s mandatory consumer protection laws, even if their terms of use specify a different country’s legal system. In particular, the Court ruled that clauses attempting to impose foreign law in standard online contracts are unenforceable where they undermine the protections granted by Israeli law.

While that case is now under review following a request for an expanded judicial panel, the broader trend is clear: Global platforms serving Israeli consumers can no longer rely on foreign law clauses to shield them from local legal exposure.

AmCham Israel’s task force aims to develop concrete policy recommendations that protect consumers while ensuring Israel remains open and competitive for American businesses.

Leaders from the travel, software, e-commerce, and digital services sectors have already joined us. Your voice is crucial to promoting a predictable and fair business environment.

Want to make an impact? Join us. For more information, contact This email address is being protected from spambots. You need JavaScript enabled to view it..