Law of Georgia On the Protection of Consumer Rights

Law of Georgia

on Consumer Rights Protection

Article 1. Purpose of the Law. The purpose of this Law is to define the legal foundations of consumer rights protection and to promote a culture of behaviour based on respect for the consumer.🔗

Article 2. Scope of Regulation of the Law. 1. This Law defines the general principles of protection of the rights of a consumer who enters into a legal relationship with a trader for the purpose of personal use of his/her goods or services.🔗

2. The operation of this Law also extends to a mixed-purpose contract in which the interest of personal use prevails over the commercial interest. Ambiguity related to the prevalence of an interest in a contract shall be resolved in favour of the consumer.

3. For the protection of consumer rights, priority is given to special regulatory legislation of the relevant field, if it does not worsen the consumer's rights established by this Law. This proviso may not be interpreted in such a way as to cause duplication of sanctions provided for by different normative acts for the same violation.

4. The operation of this Law does not extend to a contract by which a trader acts within the scope of public authority conferred by an administrative contract provided for by subparagraph „g“ of paragraph 1 of Article 2 of the General Administrative Code of Georgia, except when the trader concludes with the consumer a contract in which the trader's commercial interest prevails.

Article 3. Prohibition of Discrimination in Consumer Relations. 1. Discrimination against a consumer during the availability or supply of publicly offered goods or services is prohibited.🔗

2. Unequal treatment of persons shall not be considered discrimination if it is justified by a legitimate aim, and the mechanism for achieving this aim is necessary and proportionate.

3. If a person who considers himself/herself discriminated against presents facts that create a presumption of discrimination, the burden of proof shall be borne by the trader.

4. If the fact of discrimination against a consumer is established, he/she shall have the right to claim compensation for both pecuniary and non-pecuniary (moral) damage.

Article 4. Definition of terms For the purposes of this Law, the terms used herein have the following meaning:🔗

a) applicant − any person who applies to a Legal Entity of Public Law − Competition and Consumer Protection Agency of Georgia or an authorized body defined by Article 28 of this Law regarding violation and/or alleged violation of consumer rights, regardless of whether damage was caused directly to his/her interest;

b) selling price − the final price of a unit or a specified quantity of goods or services, including value added tax and other taxes;

c) linked contract − a contract by which the consumer acquires goods or services and which is related to a distance contract or an off-premises contract, and these goods or services are supplied by the trader or a third party on the basis of an agreement concluded between the trader and the third party;

d) distance contract − a contract concluded between the trader and the consumer using only one or several means of distance communication, through an organized scheme for distance sale or provision of services, and does not require the physical presence of the consumer and the trader. However, the contract shall not be considered a distance contract if the consumer and the trader agreed on the terms of the contract at the business premises and the contract was concluded remotely only after that;

e) unit price − the final price of goods or services, including value added tax and other taxes, for the following units: one kilogram, one litre, one metre, one square metre, one cubic metre, or other units which are generally used as a measure in Georgia;

f) commercial guarantee − additional and free-of-charge obligations assumed by the trader or manufacturer (guarantor) in favour of the consumer, in addition to the obligation to ensure conformity with the contract, such as reimbursement of the price paid, replacement of goods, repair, or other service obligations, which do not arise from the obligation to eliminate non-conformity with the contract;

g) commercial activity − any act, omission, conduct, explanation, commercial communication of the trader, including advertising and marketing, which are directly related to the sale or supply of goods or services to the consumer or to the promotion of the sale of goods or services;

h) trader − any natural person, legal entity or association of persons acting within the scope of commercial activity, as well as any other person acting in the name or on the instruction of the trader;

i) consumer − any natural person to whom goods or services are offered or who acquires or subsequently uses goods or services predominantly for personal consumption and not for carrying out trade, entrepreneurial, craft or other professional activity;

j) establishment − any immovable object or movable object where the trader usually carries out commercial activity;

k) off-premises contract − any contract concluded between the trader and the consumer off the establishment and requiring the physical presence of the trader and the consumer; a contract concluded on the establishment or by any means of distance communication, immediately after the consumer received an individual offer regarding the conclusion of the contract directly from the trader off the establishment, in the physical presence of the trader and the consumer; a contract concluded during an excursion organised by the trader for the promotion of the sale of goods or services or which produces such a result. A contract concluded as a result of the performance of notarial acts in a notary office shall not be considered an off-premises contract;

l) goods − any movable thing, as well as a property benefit placed therein and/or distributed in digital form;

m) public auction − a method of sale, in the application of which goods or services are offered by the trader, through a competitive and transparent bid, to the consumer who is personally present or who is given the opportunity to be personally present at the public auction, where the person offering the highest price is obliged to purchase these goods or services;

n) financial service − a service related to financial instruments and/or financial operations;

o) code of conduct − an agreement or rule which is not mandatory by law and establishes the conduct of the trader who undertakes by the code of conduct to be bound in one or more fields of commercial activity;

p) digital content − data produced or supplied in digital form;

q) durable medium − any instrument which ensures the long-term storage and unchanged reproduction of information for the period of time necessary for the use of this information.

Law of Georgia of 29 November 2023 No. 3761 – website, 11.12.2023.

Article 5. Main obligation to provide information to the consumer 1. Before concluding the contract, the trader shall provide the consumer, in the state language of Georgia, clearly and comprehensibly, with the following accurate and complete information (unless this information is self-evident):🔗

a) the name of the goods or service, the manufacturer and the relevant essential characteristics of the goods or service, taking into account the specifics of the information carrier (including size and capabilities);

b) the identity (name) and address (legal address) of the trader; if any – the trader's email address, fax and telephone numbers through which the consumer can communicate with the trader promptly and effectively; if any – the contact information of the trader in whose name the said person acts;

c) if any – the name of the facility for replacement, repair and technical servicing of the goods and its address, if it differs from the address specified in subparagraph „b“ of this paragraph;

d) the price of the goods or service, indicating the main costs and additional costs (including transport, forwarding, installation and others), and if, due to the nature of the goods or service, such price cannot be calculated in advance – the method of its calculation and information that additional costs may arise;

e) if any – the terms of payment, delivery of the goods or service and performance of obligations, and the procedure for handling the consumer's request by the trader;

f) the legal guarantee, if any – the commercial guarantee, as well as the conditions for the provision of after-sales service to the consumer;

g) if any – the duration of the contract, and if the contract is concluded for an indefinite period or is automatically renewed – the conditions for withdrawal from the contract;

h) if any – the consumer's obligations and the minimum term for their performance/duration;

i) the functional characteristics of the digital content, including, if any – the technical means used for its protection, as well as, if any – any information on compatibility with the hardware or software of the digital content that the trader knows or ought to know;

j) if any – the conditions for withdrawal from the contract.

2. In the case of a public auction, instead of the information about the trader provided for by subparagraph „b“ of paragraph 1 of this Article and subparagraph „a“ of paragraph 1 of Article 10 of this Law, the consumer may be provided with the same information about the auction organizer.

3. Information provided for by paragraph 1 of this Article is an integral part of the contract concluded between the trader and the consumer and may be changed only with the express consent of the parties.

4. The requirements established by paragraph 1 of this Article shall not apply to a minor everyday transaction intended for daily needs if it is performed immediately upon conclusion of the contract.

5. The burden of proving compliance with the information provision requirements established by this Article and Articles 6, 7 and 9–12 of this Law shall be borne by the trader.

6. If the trader violates the requirements for providing information related to additional costs and/or information established by subparagraph "d" of paragraph 1 of this Article and subparagraphs "b" and "f" of paragraph 1 of Article 10 of this Law, the consumer shall not be required to incur the corresponding additional cost.

Article 6. Information about the price of goods or services 1. A trader shall ensure that the selling price and the unit price of goods or services are indicated in a clear and comprehensible form. Indication of the unit price shall not be necessary if it is identical to the selling price.🔗

2. Indication of the price shall not be necessary if:

a) delivery of goods is part of a service;

b) goods are sold at a public auction;

c) a work of art or an antique is offered for sale.

3. For goods that are not pre-packaged and are weighed or measured in the consumer's presence, it shall be sufficient to indicate only the unit price.

4. In advertising in which the selling price is indicated, the unit price shall also be indicated.

Article 7. Delivery of goods 1. A trader shall deliver the goods to the consumer without delay, but not later than 30 calendar days after the conclusion of the contract, unless otherwise provided by the contract.🔗

2. If the trader fails to perform the obligation within the period provided for by the contract concluded between the consumer and the trader or established by paragraph 1 of this Article, the consumer shall set a reasonable additional period for the performance of the obligation. If the obligation is not performed after the expiry of the additional period, the consumer shall have the right to withdraw from the contract and to claim compensation for damages in accordance with the procedure established by the civil legislation of Georgia.

3. Setting the additional period provided for by paragraph 2 of this Article shall not be mandatory if it is obvious that this will have no effect, or if the consumer has made the performance of the contract conditional on timely receipt of the goods.

4. If the goods are not delivered to the consumer because they are not available, the trader shall immediately inform the consumer thereof.

Article 8. Risk of accidental loss of or damage to the goods1. When the sold goods are handed over to the consumer, the risk of accidental loss of or damage to the goods passes to the consumer, unless the parties agree otherwise.🔗

2. If the contract provides for the dispatch of the goods to the consumer, the risk of accidental loss of or damage to the goods passes to the consumer from the moment when the consumer or a third party authorised by the consumer (other than the carrier) obtains actual possession of the goods.

3. If, on the instruction of the consumer, the carrier dispatches the sold goods, the risk of accidental loss of or damage to the goods passes to the consumer from the moment of delivery of the goods to the carrier.

Article 9. Additional costs related to the contract1. A trader shall be prohibited from charging the consumer, for the use of a payment instrument, a fee greater than that which the trader itself pays.🔗

2. If the trader has indicated a contact telephone number, it shall not charge the consumer, for communication with it by that telephone number, more than the tariff established for communication. The said condition does not exclude the right of the provider of telecommunication services to charge a fee for the provision of such service.

3. Before the conclusion of the contract, the trader shall obtain the express consent of the consumer to the reimbursement of additional costs in addition to the price established for the performance of the main obligation under the contract. If the trader has not obtained the express consent of the consumer, the consumer has the right to demand the return of the additionally paid amount, notwithstanding that the consumer has not refused to reimburse the additional costs (has not rejected the default settings).

Article 10. Obligation to provide information to the consumer1. In the case of a distance contract or an off-premises contract, the trader shall, before the conclusion of the contract, in addition to the information provided for by Article 5 of this Law, provide the consumer, clearly and comprehensibly, with the following information:🔗

a) about the actual address of the trader, if it differs from the legal address, as well as about the actual address and identity of the trader on whose behalf he acts;

b) about the price of the goods or services, including taxes, and if the said price cannot be calculated in advance − about the rules for its calculation; if any, about all additional costs, including delivery, shipping and postal costs, and if such costs cannot be calculated in advance − information that additional costs may be payable. In the case of a contract concluded for an indefinite term or a contract for the subscription of goods or services, the price shall mean the total price for each payment period. If the contract provides for a fixed payment, the total price shall indicate the total monthly payment. If the total payment cannot be calculated in advance, the rules for its calculation shall be provided;

c) about the cost of using means of distance communication at the time of conclusion of the contract, if this cost is not included in the basic price;

d) about the conditions, term and procedure for withdrawal from the contract, if withdrawal from the contract is possible, as well as the form to be filled in in the event of withdrawal from the contract;

e) information that the consumer cannot withdraw from the contract if, in accordance with Article 14 of this Law, withdrawal from the contract is impossible;

f) in the event of withdrawal from a distance contract, information related to the return of the goods about the cost to be borne by the consumer, if, due to the nature of the goods, their return by post is impossible;

g) about the existence and accessibility of a code of conduct;

h) in the event of a request by the trader, about the conditions of financial security to be provided or paid by the consumer;

i) if possible − information about the procedure for out-of-court appeal and receipt of compensation.

2. The information provided for by this Article is an integral part of the contract and may be changed only with the express consent of the parties.

3. The requirements established by this Chapter shall not apply to goods or services whose price does not exceed GEL 30.

Law of Georgia of 16 June 2023 No. 3300 - website, 30.06.2023.

Article 11. Requirements for a contract concluded outside business premises1. In the case of a contract concluded outside business premises, the trader shall provide the consumer with the information provided for by Article 10 of this Law in the state language of Georgia, in writing, clearly and understandably, on paper, and, with the consumer's consent, on another durable medium.🔗

2. The trader shall be obliged to provide the consumer with a signed copy of the contract concluded outside business premises or another document confirming the conclusion of this contract on paper, and, with the consumer's consent, on another durable medium.

3. If the consumer requests the provision of services before the expiry of the period for exercising the right to withdraw from the contract provided for by paragraph 1 of Article 13 of this Law, the consumer shall provide this request to the trader on a durable medium.

Article 12. Requirements for distance contracts 1. In the case of a distance contract, the trader shall provide the consumer with the information provided for by Article 10 of this Law using a means of distance communication, clearly and comprehensibly. If this information is provided on a durable medium, it must be possible to perceive it.🔗

2. If a distance contract is concluded using electronic means, the trader shall ensure that, when ordering goods or services, the consumer is unambiguously aware that placing the order creates an obligation for the consumer to pay. If the trader has not ensured compliance with this condition, the consumer does not incur an obligation to pay.

3. On a commercial website, no later than the start of the process of ordering goods or services, information on restrictions relating to its delivery (if any), as well as information on the means of payment, shall be placed in a clear and comprehensible form.

4. If a contract is concluded using a means of distance communication that does not allow sufficient time and space for the trader to provide information to the consumer, before the conclusion of the contract the trader shall provide the consumer with at least information about his identity (name) and the information provided for by subparagraphs “a”, “b” and “g” of the first paragraph of Article 5 of this Law and by subparagraphs “b” and “d” of the first paragraph of Article 10. Other information related to the conclusion of the distance contract shall be provided by the trader to the consumer in accordance with the first paragraph of this Article.

5. In the case of concluding a distance contract using a means of telephone communication, the trader shall, immediately upon the start of the telephone communication, in addition to the information provided for by paragraph 4 of this Article, provide information about his identity (name) or the identity of the person on whose behalf he acts, and inform about the commercial purpose of the telephone communication.

6. The trader shall confirm to the consumer the conclusion of the distance contract on a durable medium, within a reasonable time after the conclusion of the contract, but no later than the delivery of the goods or immediately upon the commencement of the service. The relevant confirmation must contain:

a) the information provided for by subparagraphs “a”−“h” of the first paragraph of Article 5 and by Article 10 of this Law, except where the trader provided the consumer with the said information on a durable medium before the conclusion of the distance contract;

b) where applicable − the consumer’s prior consent and confirmation that the consumer was provided with the information provided for by subparagraph “l” of paragraph 2 of Article 14 of this Law.

7. If the consumer wishes the service to be provided during the period for exercising the right to withdraw from the contract provided for by the first paragraph of Article 13 of this Law, he/she must clearly notify the trader of this request.

Article 13. Right to withdraw from a distance contract and/or a contract concluded off-premises 1. Except for the exceptions established by Article 14 of this Law, the consumer has the right, without giving any reason, to withdraw from a distance contract and/or a contract concluded off-premises within 14 calendar days. This period shall be calculated:🔗

a) in the case of a service contract − from the conclusion of the contract;

b) in the case of a sales contract − from the moment the consumer or a third party designated by the consumer (other than the carrier) takes possession of the goods;

c) in the case of an order of goods in parts by the consumer − from the moment the consumer or a third party designated by the consumer (other than the carrier) takes possession of the last item;

d) in the case of a contract for regular delivery of goods (at defined intervals) − from the moment the consumer or a third party designated by the consumer (other than the carrier) first takes possession of the item.

2. In the event of withdrawal from the contract by the consumer, no costs (including delivery costs) shall be imposed on the consumer, except where the consumer chose a delivery service more expensive than the standard delivery service offered by the trader, or the price of the goods decreased as a result of use not connected with establishing the nature, characteristics and functioning of the goods. The obligation to cover the difference resulting from the decrease in the price of the goods shall not be imposed on the consumer if the trader did not provide the consumer with full information about the right to withdraw from the contract provided for by this Law.

3. The consumer's withdrawal from a distance contract automatically entails his/her withdrawal from the linked contract and restoration of the original state.

4. The consumer shall, within the period established by paragraph 1 of this Article, send to the trader a completed form or other unequivocal evidence reflecting the consumer's decision to return the goods. The burden of proving that the right to withdraw from the contract provided for by this Article was exercised within the established period shall be borne by the consumer.

5. The trader shall not have the right, when completing the form provided for by paragraph 4 of this Article, to require the consumer, for withdrawal from the contract, to provide more than the following information:

a) the name, physical address, fax number, email address indicated by the trader;

b) the date of the order;

c) the date of receipt of the order;

d) the consumer's name;

e) the consumer's address;

f) the consumer's signature (if the form is completed on paper);

g) the date of completion of the form.

6. The trader has the right to accept the form provided for by paragraph 4 of this Article electronically. Information about the receipt of the said form shall be provided to the consumer immediately, on a durable medium.

7. The consumer may exercise the right to withdraw from the contract within the period established by paragraph 1 of this Article, if he/she sent a notice of withdrawal from the contract to the trader before the expiry of said period. The burden of proving that the right to withdraw from the contract was exercised in accordance with this Article shall be borne by the consumer.

8. If the trader does not provide the consumer with information about the right to return goods or services provided for by this Law, the return of said goods or services is possible within 12 months after the expiry of the period established by paragraph 1 of this Article.

9. If the trader, within 12 months from the moment of commencement of the period established by paragraph 1 of this Article, provided the consumer with information about the right to withdraw from the contract, the 7-day period for return of goods or services shall be counted from the receipt of said information.

Article 14. Exceptions related to withdrawal from a contract without stating any ground. 1. The right to withdraw from a contract provided for by this Law shall not apply to contracts concluded in the financial and insurance sectors, which are regulated by the relevant subordinate normative act, except for a loan contract concluded off-premises and secured by immovable property, if the consumer has not begun to use the loan amount.🔗

2. The consumer shall not have the right to withdraw from the contract if:

a) the trader has fully performed the service provided for by the contract, he began the provision of the service with the consumer's prior consent, and the consumer knew that, in the event of fully receiving the service, he would lose the right to withdraw from the contract;

b) the contract provides that the price of the delivered goods or service depends on a change in the financial market that the trader cannot control and that arose within the period established by this Law for exercising the right to withdraw from the contract;

c) the delivered goods or service are made according to the consumer's individual order or are clearly tailored to his personal needs;

d) the delivered goods are perishable or have a short shelf life;

e) he was supplied with hermetically sealed goods, their seal was broken after delivery and, therefore, the return of the goods is impossible for reasons of protection of health or hygiene standards;

f) the delivered goods, at the time of delivery, due to their characteristics, became inseparably mixed with other goods;

g) in accordance with the terms of the contract, the consumer summoned the trader to provide urgent repair/maintenance service. This restriction shall not apply to additional services provided during this visit beyond the said service;

h) sealed audio or video recording or software was delivered and its seal was broken after delivery;

i) newspapers or magazines or other types of periodicals were delivered, except where the basis for their/its delivery is a subscription contract;

j) the contract was concluded as a result of a public auction;

k) the contract was concluded for the transfer of immovable property for non-residential purposes, for the carriage of goods, for the rental of a vehicle, for the organisation of catering or for services related to leisure, and it specifies a fixed date or period for performance of the contract;

l) digital content was supplied to him on a non-tangible medium, performance of the contract began with the consumer's prior consent, and the consumer knew that he would thereby lose the right to withdraw from the contract;

m) the contract provides for the supply of alcoholic beverages, the price of which was agreed at the time of conclusion of the contract, while delivery shall take place after 30 days, and at the same time, the said price depends on market fluctuations that the trader cannot control;

n) the contract provides for the supply of a ticket for a sports or cultural event, except where the contract defines the possibility, rules and conditions for the return of the said ticket.

Law of Georgia of 16 June 2023 No. 3300 – website, 30 June 2023.

Article 15. Consequences of withdrawal from a contract1. As a result of withdrawal from a contract, the obligations assumed by the parties under a distance contract or a contract concluded outside business premises are extinguished, and what the parties received through its performance is returned to them.🔗

2. In the event of withdrawal from a contract, the trader shall be obliged to:

a) refund to the consumer in full, without undue delay, not later than 14 calendar days from receipt of the notification of withdrawal from the contract, the amount paid by the consumer, as well as, where applicable, the amount paid to reimburse the delivery costs. The trader shall not be obliged to refund to the consumer the amount paid to reimburse the additional costs associated with the consumer's choice of a delivery service that is more expensive than the non-standard delivery service or the delivery service offered by the trader;

b) reimburse the amount using the same means of payment as used by the consumer, except where the consumer consents to the use of another means of payment and incurs no additional costs as a result.

3. In the event of withdrawal from a sales contract, the trader shall be entitled to withhold the refund of the amount until he has received the goods back or has received from the consumer a document confirming the dispatch of the goods, whichever occurs earlier, except where the trader has himself undertaken to take the goods back.

4. In the event of withdrawal from a contract, the consumer shall be obliged to:

a) return the goods to the trader or to a third party designated by him immediately after sending the notification of withdrawal from the contract, but not later than 7 calendar days, except where the trader has himself undertaken to take the goods back;

b) bear only the direct (immediate) costs associated with the return of the goods, except where the trader has himself undertaken to bear these costs or has not provided the consumer with information that such costs would arise in the event of the return of the goods. In the case of a contract concluded outside business premises, where the goods are delivered to the consumer at home, the trader shall be obliged to take the goods back at his own expense if, given the nature of the goods, their dispatch by post is impossible.

Article 16. Obligations of the Trader 1. The trader shall deliver to the consumer goods conforming to the terms provided for by the contract.🔗

2. Goods shall be considered goods conforming to the terms provided for by the contract if they correspond to the description provided by the trader to the consumer and have the same characteristics as the sample of the goods presented by the trader to the consumer.

3. In the absence of a description provided by the trader to the consumer, goods shall be considered goods conforming to the terms provided for by the contract if they are fit for the purpose of which the consumer informed the trader at the time of conclusion of the contract and to which the trader agreed.

4. If the consumer does not inform the trader of the purpose for which he/she wishes to use the goods, the goods shall be considered goods conforming to the terms provided for by the contract if they are fit for the purpose for which they are normally used.

5. If the purpose of normal use of the goods cannot be determined, the goods shall be considered goods conforming to the terms provided for by the contract if they have the characteristics of goods of that kind and function in the same way as goods of that kind, and also meet the reasonable expectations that the consumer could have had, based on the nature of the goods and the public statements made by the trader, the producer, his representative or another person responsible for placing them on the market, including by means of advertising and/or labelling.

6. A defect arising as a result of incorrect installation of the goods by the trader or under his responsibility shall be equated to non-conformity with the terms provided for by the contract for the goods (defect), if the installation of the goods was part of the contract. This rule shall also apply to goods which the consumer must assemble or install and which were incorrectly assembled or installed due to a defect in the instructions accompanying the goods.

7. For the purposes of this Article, goods shall not be considered defective goods if, at the time of conclusion of the contract, the consumer knew or ought to have known that the goods had a defect, or the defect in the goods is caused by materials supplied by the consumer.

8. The trader shall not be held liable for a public statement about goods or services if he proves that:

a) he did not have or could not have had information about this statement;

b) before the conclusion of the contract, the information contained in this statement was changed;

c) this statement could not have influenced the consumer's purchase of the goods or services.

Article 17. Consumer Rights 1. If the goods are found to be defective, the consumer has the right to require the trader to remedy the defect (repair or replacement of the goods free of charge, price reduction) or to withdraw from the contract.🔗

2. Repair and replacement of goods are the consumer's primary rights. The consumer has the right to require the trader to repair or replace the goods free of charge, except where this, due to the nature of the goods, is impossible or requires a disproportionate or unreasonably large cost.

3. The goods shall be repaired or replaced within a reasonable time, in such a way as not to cause significant inconvenience to the consumer, taking into account the nature of the goods and the purpose for which the consumer purchased them.

4. Repair or replacement of the goods free of charge implies the bearing by the trader of all costs (including postal, labour and material costs) necessary to ensure the conformity of the goods with the terms provided for by the contract.

5. The consumer has the right to request a reduction in the price of the goods or to withdraw from the contract if one of the following conditions exists:

a) in accordance with paragraph 3 of this Article, repair or replacement of the goods is impossible;

b) the trader has not repaired or replaced the goods within a reasonable time and the consumer has lost interest in the performance of the contract;

c) repair or replacement of the goods by the trader will cause significant inconvenience to the consumer.

6. In the event of withdrawal from the contract, the consumer has the right to claim compensation for damage caused by non-performance of the contract in accordance with the procedure established by the legislation of Georgia.

7. The consumer shall not have the right to withdraw from the contract if the defect in the goods is insignificant.

8. In determining the extent to which the cost is disproportionate or unreasonably large, the following conditions shall be taken into account:

a) the price of the goods or services in the event of their conformity with the terms provided for by the contract;

b) the degree of non-conformity of the goods or services with the terms provided for by the contract;

c) the alternative possibility of remedying the defect in the goods without causing inconvenience to the consumer.

Article 18. Rights Arising from a Service Contract 1. A trader shall provide the consumer with a service in accordance with the terms provided for by the service contract.🔗

2. In the event of exceeding the period provided for by the contract or discovering a defect, the consumer shall set the trader a reasonable additional period for the provision of the service/elimination of the defect, except where this is impossible due to the nature of the service or requires disproportionate or unreasonably high costs. Disproportionate or unreasonably high costs shall be determined in accordance with the procedure established by paragraph 8 of Article 17 of this Law.

3. In the event of the additional period expiring without result, the consumer shall have the right to:

a) to propose that another person provide the service or eliminate the defect at the trader's expense;

b) to demand an adequate reduction of the price of the service;

c) to withdraw from the contract and demand compensation for damage in accordance with the procedure established by the legislation of Georgia.

4. The setting of the additional period provided for by paragraph 2 of this Article shall not be mandatory if it is obvious that this will have no effect whatsoever, or the consumer has made the performance of the contract conditional on the timely receipt of the service.

5. If the trader has not started providing the service in a timely manner or the service process is unreasonably delayed, which makes it impossible to provide the service within the agreed period, the trader shall not have the right to demand reimbursement of the costs incurred in the course of providing the service, as well as remuneration for the service provided, if the consumer has lost interest in the partial performance of the contract.

Article 19. Commercial Guarantee 1. A trader shall comply with the commercial guarantee issued by him, including the terms stated in the advertisement of the relevant goods or services.🔗

2. A commercial guarantee shall include:

a) information that the commercial guarantee does not limit the consumer's rights established by this Law;

b) clearly formulated guarantee terms, including the duration and territory of validity of the commercial guarantee and the information necessary for making a claim under it, in particular, the limitation period for a claim, the trader's name and address.

3. At the consumer's request, the commercial guarantee shall be provided to him in writing or in another form acceptable to him.

4. Violation of the requirements established by paragraphs 1–3 of this Article shall not affect the validity of the commercial guarantee.

5. A condition of a commercial guarantee that limits the consumer's rights established by law shall be void.

Article 20. Burden of proof and time limits in case of non-conformity with the contract1. If the consumer discovered a defect in the goods within 6 months of taking possession of the goods, it shall be presumed, until proven otherwise, that the defect existed at the time of delivery of the goods, if this is possible given the nature of the goods or the nature of the defect. In this case, the burden of proof shall be borne by the trader. If the consumer discovered a defect in the goods after 6 months of taking possession of the goods, the burden of proving that the defect existed at the time of delivery of the goods shall be borne by the consumer.🔗

2. The consumer shall be entitled to exercise the rights provided for by Articles 17–19 of this Law if a defect in the goods was discovered within 2 years of the transfer of the goods to the consumer.

3. The operation of paragraph 2 of this Article shall not apply to the sale of second-hand goods. In the case of the sale of such goods, in the case provided for by paragraph 2 of this Article, the trader's liability shall be the subject of an individual agreement between the parties.

Article 21. Validity of standard contract terms1. A standard contract term is a term established by the trader for the consumer, pre-formulated, intended for repeated use, with which the consumer had the opportunity to become acquainted.🔗

2. The burden of proving that the parties individually agreed on a standard contract term shall be borne by the trader.

3. Standard terms of a contract offered to the consumer in written form shall be formulated in simple and comprehensible language for the consumer. A term which allows for its ambiguous interpretation shall be interpreted in favour of the consumer.

Article 22. Invalidity of Unfair Standard Terms of a Contract 1. An unfair standard term of a contract, notwithstanding its presence in the contract, shall be void if it contradicts the principles of trust and good faith and causes an unjustified imbalance in the rights and obligations provided for by the contract to the detriment of the consumer, including due to its ambiguity. Only the nature of the subject matter of the contract or its conformity with the counter-performance shall not be considered as unfairness.🔗

2. When assessing the unfairness of a standard term of a contract, the subject matter of the contract, the circumstances existing at the time of the conclusion of the contract which led to the inclusion of this term in the contract, and other terms of the contract shall be taken into account. When assessing the unfairness of the said term, neither the essence of the main subject matter of the contract nor the conformity of the price and remuneration with the goods or services to be supplied shall be taken into account.

3. The following unfair standard terms of a contract shall be void:

a) a provision which excludes or limits the liability of the trader for the death of the consumer, damage to his/her health, or other damage caused to him/her by gross negligence, if this circumstance occurred as a result of the trader's action or inaction;

b) a provision which unfairly limits or excludes the consumer's right to bring a claim against the trader or a third party for the full or partial non-performance or defective performance of an obligation assumed by the trader under the contract, or a provision which excludes the possibility of set-off of claims;

c) a provision which obliges the consumer to perform a term of the contract when the performance of the obligation by the trader is conditional only upon the occurrence of a condition dependent on his/her will;

d) a provision which grants the trader the right to retain the amount paid by the consumer when the consumer refuses to conclude the contract or to perform an obligation assumed under the contract, if the withdrawal from the contract occurs at the initiative of the trader and what the consumer receives from its performance is not commensurate with this amount;

e) a provision which releases the trader from the obligation to set an additional period for the consumer to perform his/her obligation;

f) a provision which, in the event of non-performance of an assumed obligation, imposes on the consumer the obligation to pay an amount exceeding the amount of damage or grants the trader the right to demand from the consumer an unreasonably large amount for reimbursement of expenses incurred;

g) a provision which grants the trader the right to unilaterally withdraw from the contract when the consumer is not given the opportunity to enjoy the same right, or a provision which grants the trader the right to retain the amount paid by the consumer for the receipt of a service which the trader has not yet provided, when the trader has withdrawn from the contract, except in the case where the provision refers to an obligation provided for by law;

h) a provision which grants the trader the right to terminate a contract concluded for an indefinite term without sending the consumer advance notice within a reasonable period, except where there is a significant ground for terminating the contract;

i) a provision by which a contract concluded for a fixed term is automatically extended without the consumer's consent, or by which an unreasonably short period is established for the consumer to express the will to terminate or extend the contract;

j) a provision by which the trader sets for the consumer a disproportionately long or clearly short period for the performance of a particular work, or by which the trader, for the performance of its own obligations, sets disproportionately long periods different from those provided for by the norms established by law, or by which the periods are defined vaguely;

k) a provision which binds the consumer with terms of which he did not have a real opportunity to become acquainted before the conclusion of the contract;

l) a provision which grants the trader the right, without a substantial ground defined by the contract, to unilaterally change the terms of the contract, except where the contract is concluded for an indefinite term and the trader sends the consumer notice of the change of the contract terms within a reasonable period, and the consumer has the right to terminate the contract;

m) a provision which grants the trader the right, without any significant ground, to unilaterally change the characteristics/features of the goods or services;

n) a provision which grants the trader the right, at the moment of delivery of the goods or services, to determine the price of the goods or services or to increase its price in such a way that the consumer is not given the opportunity to terminate the contract, if the final price of the goods or services significantly exceeds the price determined at the moment of conclusion of the contract, except where price indexation is permitted by law and is carried out by a predetermined methodology;

o) a provision which grants the trader the right to determine whether the goods or services conform to the terms provided for by the contract, or to unilaterally interpret any term of the contract;

p) a provision which restricts the trader's obligation to ensure the performance of an obligation assumed by its representative or subjects assumed obligations to formal requirements;

q) a provision which obliges the consumer to perform an obligation assumed under the contract, regardless of whether the trader performs the obligation imposed on it, except where the consumer was obliged to perform its obligation in advance, or a provision which restricts the consumer's right, conferred on it by law, to refuse performance of the obligation on another ground;

r) a provision by which the trader transfers the rights conferred by the contract and the obligations assumed to another person, which may result in the weakening of the guarantee of performance of the contract terms and to which the consumer has not consented;

s) a provision that restricts or excludes the consumer's right to legal protection, including a provision that obliges the consumer to defend his/her rights only in such arbitration as is not regulated by the legislation of Georgia, or restricts the consumer's ability to obtain evidence, or imposes the burden of proof on the consumer when, in accordance with law, the burden of proof is borne by the other party to the contract.

4. The invalidity of an unfair standard term of a contract shall not entail the invalidity of its other parts, if the unfair standard term is not an essential term of the contract and it is probable that the contract would have been concluded without its invalid part.

Article 23. Exceptions related to the invalidity of standard contract terms 1. In the case of a financial services contract concluded for an indefinite term, the provision defined by subparagraph "h" of paragraph 3 of Article 22 of this Law shall not be considered invalid, if there are valid grounds for withdrawal from the contract and the trader immediately notifies the consumer thereof.🔗

2. In the case of a financial services contract, a standard term shall not be considered invalid under which, in the presence of valid grounds, the trader retains the right, without sending prior notice to the consumer, to change the interest rate or the amount of the commission related to the financial service, if he notifies the consumer thereof at the first opportunity, and the consumer shall have the right to withdraw from the contract immediately.

3. The provisions provided for by subparagraphs "h", "l" and "n" of paragraph 3 of Article 22 of this Law shall not be considered invalid in another transaction concluded in respect of transferable securities, financial instruments and goods or services, in which the price is linked to fluctuations in quotations or indices established on a stock exchange or to a financial market rate which the trader cannot control, as well as in relation to a foreign currency purchase-sale contract, a traveller's cheque or an international money transfer denominated in a foreign currency.

Article 24. Prohibition of unfair commercial practice1. Unfair commercial practice is prohibited.🔗

2. A commercial practice is unfair if it contradicts the requirements of good faith and materially adversely changes or may change the economic behaviour of the average consumer in relation to the goods or services supplied to or intended for that consumer, or has or may have a material adverse effect on the economic behaviour of an average member of a group of consumers, where the addressee of the commercial practice is a specific group of consumers.

3. For the purpose of considering as unfair such a commercial practice which may materially adversely change the economic behaviour of only that group of consumers which, due to its own mental or physical ability and/or age, is particularly vulnerable, the economic behaviour of an average member of the group of consumers shall be taken into account. A commercial practice shall not be considered unfair if the information given in an advertisement is exaggerated or is not to be understood literally.

4. A misleading commercial practice or an aggressive commercial practice shall be considered an unfair commercial practice.

Article 25. Misleading commercial activity expressed by action1. In any case, the following misleading commercial activity expressed by action shall be considered unfair and prohibited:🔗

a) placing a mark of trust, a mark of quality or another similar mark without the corresponding authority conferred by the legislation of Georgia;

b) false indication that a code of conduct is recognised by a public or other organisation;

c) claiming that a trader (his commercial activity) or goods or services has received consent, permission, licence, authorisation, accreditation and others from a public body or a private person, in the absence thereof, or claiming that the mandatory conditions for obtaining consent, permission, licence, authorisation, accreditation and others have been fulfilled, if these conditions have not been fulfilled;

d) offering to purchase goods or services at a special price without disclosing the material information on the basis of which the trader assumes that he himself or through another trader will not be able to supply this goods or services or similar goods or services in that time, in that quantity and at that price which follow from the said goods or services, the scale of advertising and the offered price (misleading advertising);

e) offering to purchase goods or services at a special price and then refusing the consumer to show the advertised goods or to accept an order or to supply it within a reasonable time and/or demonstrating a defective sample of goods with the intention of promoting the sale of other goods;

f) making a false statement that goods or services will be available and/or special conditions will apply only for a short period of time, in order for the consumer to make an immediate decision and not to be given sufficient time and opportunity to make an informed decision;

g) making a statement or creating an impression that goods or services prohibited by law may be sold;

h) presenting the possibility of exercising a right conferred on the consumer by law as if it is the trader's goodwill and a special condition of the offer;

i) false claim about the type and scale of risk associated with the personal safety of the consumer or his family, if the consumer does not purchase the goods or services;

j) establishing or managing or promoting the development of such a pyramid scheme in which the consumer has the expectation that he will receive the majority of the financial benefit not from the sale or consumption of goods or services, but from the involvement of other consumers in the pyramid scheme;

k) making a statement that the trader intends to cease trading or change location, if this is not true;

l) false claim that goods or services can cure a disease or dysfunction or correct a developmental defect;

m) Dissemination of materially incorrect information about market conditions or the possibility of finding goods or services with the aim that the trader induces the consumer to purchase goods or services on terms less favourable than the market conditions for goods or services;

n) Announcing a competition or publicly promising a prize without subsequently awarding the prize or its reasonable equivalent;

o) Making a statement that goods or services are offered free of charge, if the consumer, in addition to reimbursement of the expenses necessary for receiving or transporting the goods or services, has to pay an additional amount;

p) Including in marketing material an invoice/waybill or another document obliging payment, which creates a false impression for the consumer that he/she has ordered the goods or services, when he/she has not ordered them;

q) Making a false statement or creating the impression that the trader is not acting for trade, business, craft or professional purposes, or the trader's passing himself/herself off as a consumer;

r) Creating a false impression for the consumer that after-sales service is available in another country;

s) Advertising goods or services through the media at the trader's order in such a way that, by the content, image or sound of the advertisement, it is impossible for the consumer to recognise the advertisement;

t) Deliberate advertising by a manufacturer of goods or services similar to the goods or services of another manufacturer in such a way as if these goods or services are produced by the same manufacturer, which misleads the consumer;

u) Claiming that, during gambling, goods or services may bring profit to the consumer;

v) Provision of after-sales consumer service in a language different from the language used before conclusion of the sale transaction, which is not the state language of Georgia, without clearly providing the consumer with information about this before conclusion of the sale transaction.

2. A misleading commercial practice expressed by an act of a trader shall be considered to be the provision to the consumer of false information or the provision of information in such a manner (even if the information provided for by one or more subparagraphs of paragraph 3 of this article is factually correct) as has caused or may cause deception of the consumer and as a result of which the consumer has concluded or may conclude a transaction that he/she would not otherwise have concluded.

3. The information provided for by paragraph 2 of this article includes:

a) the nature and the main characteristics of the goods or services: availability, benefits, risks, use, composition, accessories, after-sales service, procedures related to the complaint handling rules, place, date and method of production, delivery, conformity with the purpose, quantity, size, weight, characteristics, geographical or commercial origin, conditions of carriage and storage, expected results of use, as well as the results of inspection and testing of the goods or services and material circumstances identified on their basis;

b) the scope of the trader's liability relating to the motive for the commercial activity and the particular nature of the sales process, as well as any information relating to the trader's direct or indirect sponsorship of goods or services;

c) the price or an appropriate method of calculating the price, or an indication of a special price, as well as the conditions for the supply of goods or services;

d) services related to the goods or services, the need to replace or repair part of the goods;

e) information about the trader or his representative, including identification data, status, consent, qualifications, industrial, commercial and intellectual property rights or connection therewith, as well as other rights related to production or commercial activity;

f) information about consumer rights, including information on the possibility and form of return, replacement and repair of goods by the consumer, submission of a claim, as well as the expected risk.

4. Misleading commercial activity expressed by an action shall be deemed to be such marketing of goods or services, including comparative advertising, which causes confusion in relation to a competitor's trademark, name (designation) and other distinguishing mark.

5. Misleading is a commercial activity expressed by an action of a trader, when the trader declares that he is a signatory to a code of conduct and that the requirements established by this code of conduct apply to him, but he violates the rules of conduct provided for by the said code of conduct.

Article 26. Misleading commercial activity expressed by omission 1. A commercial activity of a trader expressed by omission is misleading when, in a specific case, taking into account all factual circumstances and the limitations of the characteristics of the means of communication, the factual content of the information does not contain material information that an average consumer needs to make an informed decision, as a result of which the consumer concluded or may conclude a transaction that he/she would not have concluded had he/she received this information.🔗

2. A commercial activity of a trader expressed by omission is misleading when the trader provides the material information provided for by paragraph 1 of this Article to the consumer vaguely, unclearly or untimely, or the commercial purpose is not apparent in the commercial activity and the circumstances do not make it clear either, as a result of which the consumer concluded or may conclude a transaction that he/she would not have concluded.

3. If the means of communication/information carrier used to provide information about the commercial activity is limited in space or time required for placing the information, in order to determine whether the trader's omission misled the consumer, all circumstances related to the trader's attempt to provide the information to the consumer by any other means shall be taken into account.

4. In the case of an offer to purchase goods or services, the following information shall be considered material information (unless it is otherwise clearly apparent from its content):

a) about the essential characteristics of the goods or services, taking into account the characteristics of the goods or services and the information carrier;

b) about the identity (name) of the trader, actual address and identification data, as well as the name (title) of the trader's representative, actual address and identification data;

c) about the full price of the goods or services, indicating the main costs and additional costs (including transportation, forwarding, installation and others); if, due to the nature of the goods or services, it is impossible to calculate its main price in advance − about the rules for calculating the main price; if it is impossible to calculate additional costs in advance − information that an obligation to incur additional costs arises;

d) about the terms of payment, delivery of goods or services and performance of obligations, as well as the procedure for the trader's consideration of a consumer complaint;

e) if any − about the right to withdraw from the contract.

5. Failure to fulfil the obligations to provide information provided for by Articles 5, 6 and 9−12 of this Law shall also be considered a misleading commercial activity expressed by omission.

Article 27. Aggressive commercial practice1. In any event, the following aggressive commercial practices shall be considered unfair and shall be prohibited:🔗

a) creating the impression that the consumer cannot leave the business premises until a contract is concluded;

b) the trader's refusal, against the consumer's will, to leave the consumer's place of residence, except where the trader's presence at the consumer's place of residence is necessary for the performance of an obligation provided for by the contract;

c) making unsolicited offers to the consumer systematically, by telephone or by other means of distance communication, except where this is necessary for the performance of an obligation provided for by the contract;

d) a direct exhortation in an advertisement to a child to buy the advertised goods or services or to persuade his/her parents or other adult persons to buy those goods or services for him/her;

e) providing the consumer with false information that, if he/she does not purchase the goods or services, the trader's business or life will be endangered;

f) creating the false impression that the consumer has won, will win or, as a result of performing a certain action, will win a prize or receive another similar benefit, when no prize or other similar benefit has been offered, or requiring the performance of an action as a result of which the consumer may win a prize or receive another similar benefit, although the performance of that action is conditional on the consumer paying money or incurring another additional expense;

g) requiring a consumer who wishes to receive an insurance payment to submit a document that is not necessary to establish the existence of the right to claim, or leaving his/her correspondence without response for the purpose of restricting the consumer's right;

h) the supply by the trader to the consumer of goods or services that the consumer has not ordered, and demanding payment in full or in instalments of the price of the goods or services therefor, or the supply by the trader to the consumer of goods or services different from those ordered by the consumer, at the trader's expense, without the possibility of return to the original state.

2. A commercial practice is aggressive if its content, taking into account all the circumstances, through harassment, coercion, including the use of physical force or the abuse of influence, significantly impairs or is likely to impair the average consumer's right to free choice or alters and/or is likely to alter his/her behaviour in relation to the goods or services, as a result of which the consumer has concluded or is likely to conclude a transaction that he/she would not have concluded.

3. In order to determine whether, in the course of carrying out a commercial practice, there was harassment, coercion, including the use of physical force or the abuse of influence, the following circumstances shall be taken into account:

a) the time, place, nature, character and intensity;

b) the use of threatening or abusive language or such behaviour;

c) the abuse by a trader, in order to influence the consumer's decision, of a specific accident, natural disaster or similar circumstance, which deprives the consumer of the opportunity to judge soundly and to take a decision in relation to goods or services;

d) the artificial creation of such obstacles as do not arise from the contract, whereby the trader seeks to hinder the exercise of the consumer's rights provided for by the contract, including the consumer's right to withdraw from the contract or to choose other goods or services or a trader;

e) any threat of committing an unlawful act.

Article 28. Mechanisms for the Protection of Consumer Rights 1. The consumer shall have the right to apply, in respect of a violation of this Law, to a Legal Entity of Public Law − the Competition and Consumer Protection Agency of Georgia (hereinafter − the Agency) or to the authorised body regulating the relevant field. Articles 29−36 of this Law shall not apply to the authorised body regulating the relevant field. The authorised body regulating the relevant field shall, in exercising the authority provided for by this Article, be guided by the rules established by it.🔗

2. The existence of the right provided for by paragraph 1 of this Article shall not deprive the consumer of the right to apply to a court or arbitration and/or the right to resolve a dispute through mediation.

Law of Georgia of 29 November 2023 No. 3761 – website, 11.12.2023.

Article 29. Competence of the Agency in the field of consumer rights protection1. Protection on the territory of Georgia of the rights and legitimate interests of consumers established by this Law, prevention of violations of their rights and facilitation of the restoration of violated rights, detection of facts of violation of consumer rights and appropriate response to violations provided for by law shall be carried out by the Agency and the authorised body regulating the respective field.🔗

2. The competence of the Agency shall not extend to the fields provided for by the Organic Law of Georgia “On the National Bank of Georgia” and the Laws of Georgia “On the Activities of Commercial Banks”, “On Mortgage-Secured Bonds”, “On Investment Funds”, “On the Securities Market”, “On Conversion into Securities”, “On Insurance”, “On Electronic Communications”, “On Broadcasting” and “On Energy and Water Supply”, as well as to those fields in which the protection of consumer rights is ensured by an authorised body defined by the respective legislation.

3. If an application concerning a possible violation of a consumer right in a field provided for by paragraph 2 of this Article is submitted to the Agency, the Agency shall forward the said application to the respective authorised body and shall notify the applicant thereof.

4. In order to exercise the competence conferred on it by the legislation of Georgia, the Agency:

a) examines such a fact of a possible violation of a consumer right established by this Law as has caused or may cause a violation of the right of a group of consumers;

b) for the purpose of examining the case, requests from the applicant and/or the trader the information (including confidential information) necessary for the exercise by the Agency of the respective competence and determines a reasonable time limit for the provision of such information to it. The Agency shall request and subsequently process the said information in accordance with the norms of the Law of Georgia “On Personal Data Protection”;

b¹) in the event of failure to provide or incomplete provision, within the established time limit, of the information provided for by subparagraph “b” of this paragraph, imposes a fine on the trader after sending an appropriate notification, in accordance with paragraph 4¹ of Article 34 of this Law;

c) in the event of failure to receive or incomplete receipt, within the established time limit, of the information provided for by subparagraph “b” of this paragraph, is entitled to submit to the court a motion for the provision of the respective information by the trader;

d) summons the parties/interested persons in order to receive explanations;

e) where necessary, holds consultative meetings with representatives of State agencies, experts and/or other persons;

f) develops recommendations on measures to be taken to improve the state of consumer rights protection in Georgia;

g) if, as a result of the examination of the case, the fact of a violation of a consumer's right is established, shall set the trader a reasonable time limit for the restoration of the violated right and/or require the trader to cease, within a specified period, the action considered to be a violation and/or the prohibited action provided for by this Law;

h) if the decision adopted by the Agency as a result of the examination of the case is not fulfilled or is improperly fulfilled within the established period, shall impose a fine on the trader;

i) is entitled, if a standard contract term is considered unfair, to prohibit traders operating in the same economic sector or their associations from using a similar unfair standard term, or to issue a recommendation that they use such a term;

j) is entitled, where necessary, to appoint an expert examination;

k) monitors the fulfilment of the decisions adopted by the Agency;

l) records and analyses statistical data on the facts of violation of consumer rights;

m) carries out measures to raise public awareness on issues related to consumer rights;

n) cooperates on issues of consumer rights protection with representatives of state authorities, local authorities, international organisations and civil society.

Law of Georgia of 16 June 2023 No. 3300 – website, 30.06.2023.

Law of Georgia of 15 December 2023 No. 3938 – website, 27.12.2023.

Article 30. Grounds for the examination by the Agency of the fact of an alleged violation of a consumer's right1. An applicant shall be entitled to submit to the Agency an application regarding an alleged violation of a consumer's right.🔗

2. The Agency shall commence the examination of the fact of an alleged violation of a consumer's right if it has information that, as a result of the action of a specific person/persons, the right of a group of consumers is being violated or may be violated.

3. The ground for the Agency to commence the examination of the fact of an alleged violation of a consumer's right is a reasonable assumption that, in the event of a violation of the requirements of this Law, the interest of a group of consumers is being harmed or may be harmed.

Article 31. Time limit for applying to the Agency1. The time limit for applying to the Agency regarding a violation of the requirements of this Law is no later than 2 years from the commission of the violation.🔗

2. The commencement of the examination of the case by the Agency shall be a ground for the suspension of the running of the time limit provided for by paragraph 1 of this Article.

Article 32. Time limit and procedures for examination of a case by the Agency 1. The Agency shall, within 10 working days from the submission of an application to it, notify the applicant about the response to the application or about the absence of the grounds provided for by paragraphs 2 and 3 of Article 30 of this Law.🔗

2. The Agency shall examine the case within 1 month from the adoption of the decision to start the examination of the case.

3. The examination of the case, taking into account its importance and complexity, may be extended for no more than 3 months.

4. The running of the time limit provided for by paragraph 1 of this Article and/or the time limit for examination of the case shall be suspended in the event of requesting additional information related to the case and/or ordering an expert examination.

5. The Agency shall, within 3 working days from the adoption of the decision to start the examination of the case, provide the trader with the relevant information and set for it a time limit of not less than 5 working days for submitting its position on the alleged violation of the consumer's right.

6. The Agency shall be entitled, during the examination of the case, to invite the parties/interested persons to receive explanations, as well as to hold consultative meetings.

7. The Agency shall be entitled, during the examination of the case, in case of necessity, to adopt a decision on ordering an expert examination, if it is impossible to adopt a reasoned decision on the case without an expert opinion. If the fact of violation of the consumer's right is established, the trader shall be obliged to fully reimburse the expert examination costs.

8. During the examination of a case by the Agency, if it is related to unfair commercial practice and there is an urgent necessity, and delay may cause the destruction of factual data important for the case or make it impossible to obtain this data, the Agency shall be entitled to apply to the court with a motion for temporary suspension of certain actions of the trader and with justification that failure to apply the said measure will complicate or make impossible the examination of the case, the exercise of the violated or disputed right, will cause irreparable and direct damage or such damage as cannot be compensated by imposing compensation for damage on the trader.

Article 33. Decision of the Agency1. The Agency shall, as a result of the examination of the case, within the time limit established by Article 32 of this Law, adopt a decision on confirming or denying the violation of the right of a group of consumers.🔗

2. In the event of confirming the violation of the right of a group of consumers, the Agency, by its decision, shall set a time limit for the trader and require the fulfilment of one or both of the following conditions:

a) restoration of the violated right;

b) cessation of the prohibited action provided for by this Law.

3. The decision adopted by the Agency as a result of the examination of the case shall be sent to the trader within 3 working days.

4. The trader shall, no later than 5 working days after the expiry of the time limit set by the Agency, provide the Agency with information on the measures taken by it in connection with the restoration of the violated right and/or the cessation of the prohibited action provided for by this Law.

5. In the event of non-fulfilment or improper fulfilment of the Agency's decision in accordance with paragraph 2 of this Article and within the established time limit, the Agency shall impose a fine on the trader in accordance with Article 34 of this Law.

6. The decision of the Agency shall include:

a) the details of the trader in respect of whom the examination of the case was conducted;

b) a description of the facts;

c) the information received and processed by the Agency in connection with the case;

d) the reasoned assessment of the Agency;

e) an instruction on the actions to be taken by the trader and the relevant time limit for eliminating the fact of the violation of the right of a group of consumers, restoring the violated right and/or ceasing the prohibited action provided for by this Law.

7. The Agency shall, within 3 working days after adopting the decision, publish on its official website the full text of the said decision, including the reasoning, except for confidential information established by law.

8. Before the completion of the examination of the case, the Agency shall consider the conditional obligations offered by the trader in order to eliminate the alleged violation of the law. If the Agency considers that as a result of the fulfilment of the conditional obligations undertaken by the trader the risk of the alleged violation of the law will no longer exist, it shall agree to the offered conditional obligations and shall complete the examination of the case without assessing the fact of the alleged violation of the law.

9. In the case provided for by paragraph 8 of this Article, the Agency shall conclude a written agreement with the trader on the conditions and time limit for the fulfilment of the obligations. Information thereon shall be published on the official website of the Agency.

10. The Agency shall be entitled to resume the examination of the case, the time limit of which shall not exceed 1 month, if:

a) the trader fails to fulfil or improperly fulfils the conditional obligations undertaken by it within the time limit established by the written agreement concluded with it by the Agency;

b) the conditional obligations are based on false, inaccurate or misleading information provided by the trader.

11. The rules and procedures for the examination of the case shall be developed and approved by the Agency.

Article 34. Fine1. In the event of non-fulfilment or improper fulfilment of the Agency's decision within the period determined by the Agency itself, a fine shall be imposed on the trader. The amount of this fine shall not exceed 2 per cent of the trader's annual turnover during the previous financial year. At the same time, it shall not be less than GEL 600.🔗

2. If, based on the date of establishment of the trader to be fined, it is impossible to calculate its annual turnover during the previous financial year, the amount of the relevant fine shall be determined from the turnover calculated according to the period elapsed from the establishment of the trader until the imposition of the fine on it. At the same time, it shall not be less than GEL 600.

3. When determining the amount of the fine, the nature, gravity and duration of the violation shall be taken into account.

4. In the event of a repeated commission of a violation by the trader within 12 months, a fine shall be imposed on it in the amount of double the imposed fine.

4¹. In the event of failure to provide the Agency, within the established period, with the information provided for by subparagraph „b“ of paragraph 4 of Article 29 of this Law, or of providing it incompletely, the amount of the fine imposed on the trader shall be GEL 500. In the event of the commission of the same act by it within 1 year from the imposition of this fine, the amount of the fine shall be GEL 1,000.

5. The imposition of a fine on the trader shall not release it from the obligation to comply with the Agency's decision.

6. The trader shall be obliged to pay the fine within 1 month from its imposition.

7. The fine shall be paid into the State Budget of Georgia.

8. In the event of non-payment of the fine, it shall be enforced immediately in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 16 June 2023 No. 3300 – website, 30.06.2023.

Article 35. Appeal against the Agency's decisionThe Agency's decision may be appealed to a court within 30 calendar days from its delivery to the trader, in accordance with the procedure established by the legislation of Georgia. An appeal against the Agency's decision on the establishment of a violation does not deprive the Agency of the right to exercise the authority provided for by paragraph 5 of Article 33 of this Law and to impose the relevant fine on the trader.🔗

Law of Georgia of 16 June 2023 No. 3300 – website, 30.06.2023.

Article 36. Annual report on the Agency's activitiesThe Agency shall annually, not later than 1 May, submit to the Parliament of Georgia and the Government of Georgia a report on its activities carried out in the field of consumer rights protection. This report is public and shall be published on the Agency's official website.🔗

Article 37. Participation of non-entrepreneurial (non-commercial) legal entities in the protection of consumer rights Non-entrepreneurial (non-commercial) legal entities are entitled to participate in the protection of consumer rights, in particular, in the development and implementation of consumer rights protection policy, including:🔗

a) in the event of a violation of the rights of a consumer group established by this Law, to participate in the preparation of the relevant application;

b) to cooperate with entrepreneurs' associations and relevant state bodies for the protection of the rights of consumer groups;

c) to facilitate the resolution of a dispute through mediation;

d) to participate in the implementation of information campaigns and educational programmes on matters related to consumer rights in order to raise consumer awareness.

Article 38. Transitional provision The Agency shall, by 1 October 2022, develop and approve the relevant legal act provided for by paragraph 11 of Article 33 of this Law.🔗

Article 39. Entry of the Law into Force 1. This Law, except for Article 28, paragraphs 2–4 of Article 29 and Articles 30–36 of this Law, shall enter into force on 1 June 2022.🔗

2. Article 28, paragraphs 2–4 of Article 29 and Articles 30–36 of this Law shall enter into force on 1 November 2022.

President of Georgia Salome Zourabichvili

Tbilisi,

29 March 2022

No. 1455-VIIIms-Xmp