What was the primary reason for the Ben-Ami and Spiegelman class action lawsuits against Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
e**"); and Rebecca Spiegelman v. Ben & Jerry's Homemade, Inc., Class Action No. 46391-07-21 (the "Spiegelman Case")).
The named plaintiffs in the Ben-Ami Case and the Spiegelman Case asserted that Ben & Jerry's Homemade, Inc.'s ("Homemade's") July 19, 2021 announcement that it would cease to sell products in the disputed territories was a violation of Section 3(a1) of the "Prohibition of Discrimination in Products, Services, and Entry to Public Places Law, 2000" In the Ben-Ami Case, the named plaintiff sought an order requiring Homemade to withdraw its announcement, and made a personal claim of NIS 100 (approximately USD$30), and the class's total claim was NIS 14,000,000 (approximately USD$4,307,690). In the Spiegelman Case, the named plaintiffs sought an injunction that would restrain Ben & Jerry's Homemade, Inc. ("Homemade") from discriminating against the residents of the disputed territories and would force Homemade to market its products in an equal manner in Israel. The amount sought in the Spiegelman Case was a per
Source: Item 3 — LITIGATION (FDD pages 18–20)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Ben-Ami and Spiegelman class action lawsuits were initiated because of the company's announcement on July 19, 2021, that it would cease selling products in disputed territories. The plaintiffs argued that this decision violated Section 3(a1) of the "Prohibition of Discrimination in Products, Services, and Entry to Public Places Law, 2000." The Ben-Ami case sought an order to force Ben Jerrys to withdraw its announcement, with a total claim of NIS 14,000,000 (approximately USD $4,307,690). The Spiegelman case sought an injunction to prevent Ben Jerrys from discriminating against residents of the disputed territories, with a total claim of NIS 30,000,000 (approximately USD $9,230,770). Both cases also included a personal claim of NIS 100 (approximately USD $30) for the named plaintiffs.
The plaintiffs in both cases later moved to certify a class action and amend their motion to include a claim under Israel's "Anti-Boycott Law." Ben Jerrys objected to these motions, arguing that defending against two separate applicants would be burdensome and that no consumer relationship existed between Ben Jerrys and the applicants, making the Anti-Boycott Law claim inappropriate under Israeli Class Actions Law. However, these claims were nullified when an agreement was reached in June 2022 regarding the distribution of Ben Jerrys products in Israel and the disputed territories in a separate case, Avi Avraham Zinger and American Quality Products Ltd. v. Ben & Jerry's Homemade, Inc., Unilever United States, Inc. and Conopco, Inc.
Ultimately, in November 2022, the applicants petitioned the court to withdraw their motion for class certification approval and dismiss their individual claims, based on an agreement reached by the parties. In December 2022, the Ben-Ami and Spiegelman cases were settled for a combined nominal amount of $25,000, split equally, and subsequently dismissed. This resolution highlights the potential for legal disputes arising from business decisions related to international operations and the importance of considering local laws and regulations.