Rockport Importer Fined Over 3 Million NIS for Blocking US Website Access
The Israel Competition Authority penalized Originals, the official Rockport importer, over 3 million NIS for actions harming personal imports, marking a renewed regulatory crackdown.
The Israel Competition Authority has intensified its enforcement against official importers attempting to obstruct parallel and personal imports, announcing a agreed order with I.A.L., the operator of the Originals retail chain. Under the arrangement, the company will pay over 3 million NIS to the state treasury regarding its conduct as the official importer of Rockport footwear in Israel.
Investigation into US-Israel Price Gaps
According to the Competition Authority, the investigation was launched following discrepancies in pricing between Israel and the United States. Israeli consumers frequently consulted the official Rockport US website for price comparisons, with some purchasing shoes via international shipping forwarders.
The Authority asserts that during commercial negotiations between Originals and the global brand owner, Israeli representatives raised concerns. In response, the brand owner suggested blocking Israeli IP addresses from accessing the US website, redirecting them automatically to the local Originals site.
Financial Penalties and Broader Crackdown
Although Originals forwarded its local URL, it claimed the solution did not match the original issue raised. The Competition Commissioner concluded that the company effectively facilitated harm to personal imports. Access for Israeli users has since been restored.
Originals will pay a fine exceeding 3 million NIS under the agreed order, which is open for public comments for 30 days, without admitting liability.
This case aligns with a broader enforcement spike by the Competition Authority, following a legal amendment enacted in September 2023 prohibiting direct importers from hindering parallel or personal importation.
