A class action lawsuit was filed against Facebook claiming that it reads private messages and uses them commercially. The claim was filed in Israel despite the fact that the Terms of Use on Facebook's website determine that any dispute will be conducted in California and under the laws of the State of California.
The Supreme Court held that the Israeli Standard Contracts Law is intended to protect customers from depriving stipulations in contracts where they do not have bargaining power, and therefore the law includes a determination that depriving stipulations will be annulled or amended by the Court and even establishes a list of stipulations considered to be discriminatory, including restrictions regarding the right to appeal to legal instances. A stipulation in a standard contract may be considered discriminatory even if the service provided is a free service, and even when it comes to class actions, and therefore the jurisdiction of the foreign jurisdiction is null and void and claims can be filed in Israel against Facebook. However, any provision relating to the fact that the applicable law will be governed by the laws of the State of California does not discriminate against customers.