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GCCA: An illusory promise of a gift/prize to consumers constitutes an unfair commercial practice

The GCCA has concluded that “e commerce.Georgia 2023” Ltd violated the the Law of Georgian on the Protection of Consumer Rights due to its failure to adhere to a commitment agreement made with the agency.  


In March 202 4, the GCCA concluded its re-examination of the case involving “e commerce.Georgia 2023” and confirmed that the company violated consumer protection standards despite an agreement requiring it to align its trade practices with legal regulations. The agency re-examined the case and determined the violation by the “e commerce.Georgia 2023”. Based on the assessment of the circumstances and the evidence presented, it was confirmed that the seller failed to meet its primary obligations, which included providing information to consumers, adhering to delivery terms, and fulfilling obligations related to the replacement/repair/return of defective items.


The GCCA’s investigation has deemed the misleading promise of a gift or prize to consumers as an unfair commercial practice, citing it as a violation of consumer protection law. In this case, “e commerce.Georgia 2023” Ltd advertised that a washing dryer would be provided as a gift with the purchase of a specific item and also offered a 20% cashback incentive, which the consumer used to acquire a meat grinder. However, the consumer reported that neither the promised gift nor the item purchased with the cashback has been delivered. As a result, the trader was ordered to restore the violated consumer rights within one month and to align its trading practices with the specific legal standards set out in the law.


For information: according to the legislation, when a trader fails to execute or improperly executes a decision of the Agency within the period determined by the Agency, the trader shall be penalized. The amount of penalty shall not exceed 2 % of the annual turnover of the trader for the preceding financial year. If, during a period of 12 months, a trader commits a violation repeatedly, he/she shall be subject to a penalty which is double the amount of the previously imposed penalty. The Agency's decision can be appealed in court.


According to the data from the 10 months of 2024, 717 applications have been submitted regarding the protection of consumer rights. 70 violations of consumers group were confirmed in 138 cases.  As a result of failure to fulfill obligations imposed by GCCA, 44 traders were fined a total of 44 901 GEL in 73 cases. 121 commitment agreements were signed in 143 cases.


 

06.11.2024
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