In general the free market is the best and most efficient system. It generally finds its own failures and weaknesses and naturally corrects itself relatively quickly.
It seems the Knesset has discovered a weakness in the retail market and does not believe the free market can correct itself, so it wants to regulate the market instead.
The Knesset Economics Committee headed by MK Eitan Cabel (Hamachane Hatzioni) is preparing a law proposal for its final readings in Knesset.The law would regulate the use of the words "sale", "Mivtza"and the like in retail stores offering their wares for discounted prices. The problem, it seems, is that shops put up big signs declaring massive sales and discounts, yet it remains unclear if the price is even discounted or if the customer is going to get the stated benefits.
Cable called it "fake mivtza", borrowing the expression made popular by US President Donald Trump. Cable says the goal is not to regulate an industry like this but the Knesset wants to ensure that a sale is really a sale and not just a deception by the store owner..
The law would require stores offering items for sale, to first sell the item at the "regular" price for [at least] 30 days prior to the sale, and the sale must be in effect for [at least] 45 days.
source: Kol Hai News
There seems to be a lot missing here. I don't see how this can work. A store has to sell an item for 45 days at the discounted price in order to offer a sale? that makes no sense. 45 days? Why can't a store offer a sale for a limited time, such as a week or 3 days or a month? 45 days seems crazy.
I like the idea of the store having to keep the regular price for at least 30 days prior to the sale. This would prevent them from raising the price and then offering a sale, or simply writing on the sign a higher price than it actually sells for and then a discounted price that might not be such a discount, if at all.
------------------------------------------------------
Reach thousands of readers with your ad by advertising on Life in Israel
------------------------------------------------------
