As part of a settlement agreement established in the Central District Court, eligible subscribers of Hot Company will receive benefits in the amount of approx.Ten million shekels. In addition to that, the company will donate NIS 2 million to public entities and institutions that it markets.
The settlement came after a class-action lawsuit filed against the company in 2019, in which the plaintiffs complained that the Hot company did not take care to inform the subscribers within the time-limited transactions that at the end of the period the monthly subscription fees would increase. Hot company rejected the claims of the customers and claimed that it was conducted according to the law and indeed informed the customers about the end of the employment period.
who are entitled to compensation
Those entitled to compensation from Hot are the subscribers whose subscription fees have increased without the company notifying them of this. According to the arrangement that was agreed upon, Hot will compensate all those entitled with ‘credit’ vouchers which the customers will be able to redeem in the company’s online content library. As of this moment, the exact amount of credit that each customer will receive has not been determined.
Illustration (photo: romantic studio\shutterstock)
The prosecution stated that this is an arrangement that benefits the members of the group, and that the approved compromise arrangement provides the customers with useful services, for which they pay anyway, without any payment and that the arrangement contributes significantly to the sectors that need it.
The Hutt company stated: Out of the Hot company’s desire for transparency, it updates its customers by all possible means about the end of promotions and that the company has reached a compromise agreement that is legal and will provide benefits to the company’s customers. The implementation of the agreement was implemented within a few months and all eligible customers will receive a personal SMS message.
Not the first time
As far as the Hot company is concerned, this is not the first time that it has been sued for huge sums by its customers. In the past year, the company went to court several times after being sued by angry customers. Just last September, the court ruled that the company would pay tens of millions of shekels to its customers for not meeting the response times at its call centers and it was also determined that the company would pay an amount of 2 million shekels for not disconnecting customers when they requested but only after many months.