New law on consumer protection in Georgia
Georgia Consumer Protection Law of 2022: Learn about important changes and how they affect consumer protection in the country.
Contents⬇️
Basic principles of the bill
Since May 25, 2012, there was no regulatory document in Georgia that would regulate the relationship between the buyer and the seller at the legislative level. This is due to the fact that the previous law expired without the adoption of a new bill. The new Law on Consumer Protection came into force on June 1, 2022. The provisions of the Law are aimed at coordinating relations between the seller and the consumer, including in the financial sector.
The document is drafted taking into account the rapidly developing economic system, therefore it contains articles aimed at controlling trade in online services and marketplaces. However, the Law clearly defines the inadmissibility of exchanging and returning quality goods without substantial reasons. Another point: the Law does not establish serious sanctions aimed at restricting the activities of sellers.
The conditions for returning or exchanging a purchase are determined in Article 17 of the Law, which specifies the seller's obligation to eliminate defects, carry out free repair or replace the goods within a certain period if defects in the product are discovered by the buyer and a claim is filed. Thus, it has become much easier and faster for consumers to obtain fulfillment of obligations from a store when selling defective goods.
The buyer does not have the opportunity to refuse the product or demand a refund if the product has no defects or they are considered insignificant. At the same time, the consumer can demand a full refund or a price reduction in case of impossibility or violation of repair deadlines.
Compensation for moral damage from representatives of a retail network is allowed in case of public discrimination based on national origin or other criteria. The grounds for awarding compensation are described in more detail in Article 3 of the Law.
Please note that the rights and obligations of the parties mentioned above apply to both the purchase of products in retail outlets and to distance selling, orders for purchases with delivery, and the provision of financial services.
Consumer's right to information about the product
The Law pays special attention to the requirement of the seller to provide the buyer with accurate and up-to-date information about the product. This must be done before the conclusion of the sales contract, and the information must be presented in a form that is understandable to the client and in Georgian language.
What needs to be specified?
- The name of the product or service;
- Contact details of the entrepreneur, including technical service points;
- The main characteristics of the product;
- The address and name of the manufacturer;
- Terms of warranty, product repair, and contract termination.
The cost of the product is indicated including tax, and information on additional expenses for delivery, assembly, and installation must also be provided. When selling digital content, the instructions for use must define specialized means for protecting the product.
The buyer has the right to unilaterally terminate the remote contract concluded on a trading online platform within 2 weeks from the moment of signing the contract. At the same time, the consumer is not obliged to indicate the reasons for terminating the contract but must pay the delivery costs.
Restrictions on aggressive advertising
The main aspect of advertising activity under consideration in the current law is the prohibition of aggressive advertising strategies. An obvious example of unacceptable advertising is the imposition of products over the phone in the form of spam messages and calls. Such violations include advertising aimed at children with the aim of influencing their parents, as well as creating a false impression of the need to buy something at the moment.
In addition, the list of aggressive seller actions includes the intention to lure the buyer by imposing a winning lottery or receiving a cash prize when buying goods for a specific amount.
Financial penalties for sellers
In Georgia, there is a fairly impressive list of fines for violating prohibited actions at the legal level. However, the bill establishes the possibility of imposing financial penalties only for non-compliance with a decision on a complaint about illegal activity.
According to the law, the functions of preparing statements and resolving conflicts between buyers and sellers belong to non-profit organizations that are formed to protect consumer rights.
The National Competition Agency deals with the consideration of statements addressed to entrepreneurs. However, disputes in the banking and insurance sectors do not fall within its competence. Conflict situations in these sectors are obliged to be resolved by other state bodies.
Application of the law in practice
Inspections of trading points by the Competition Agency based on consumer complaints are of a documentary nature. The procedure for considering the application provides for a remote request for documents from the entrepreneur, clarification of details in a personal conversation in the presence of experts if necessary. The law does not establish the right of the Agency to visit the store, seize documents, and stop commercial activity.
The decision on the consumer complaint must be made within 1 month from the date of receipt of the complaint. At the same time, the Agency can conduct inspections without the appropriate complaints, but based on the testimony of a group of buyers about violations of the law.
If the entrepreneur admits guilt during the inspection, then in some cases it is sufficient to eliminate the alleged violations without imposing a fine. In another situation, the amount of the fine is determined by state bodies. It can amount to up to 2% of the company's turnover for the previous financial year.
Challenging Agency decisions is possible within one month from the date of the decision. It can be said that the Law on Consumer Protection of 01.06.2022 is dominated by a familiar administrative approach in the legal regulation of conflicts in the retail trade sector.
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