The Georgian Competition and Consumer Agency (GCCA) has established a violation of the Law of Georgia on the Protection of Consumer Rights by LLC "Guliani" (operating under the trade name "Khinkali House"). Following a comprehensive examination and assessment of the factual circumstances of the case, it was determined that the company systematically failed to provide consumers with accurate information on the final price of goods in its menu, with a service charge of 15% applied in addition to the prices displayed.
The Agency found that displaying a service charge only as a percentage, without indicating the final price, places an unreasonable burden on consumers who are left to calculate the total amount themselves. This practice constitutes an unfair commercial practice under the Law of Georgia on the Protection of Consumer Rights. Consumers have the right to receive clear and complete price information before entering into a contract, without having to perform any additional calculations.
By decision of the Agency, and for the purpose of eliminating the established infringement, the trader has been ordered to amend its menu within a period of one month and to ensure that consumers are provided with the final price of goods, inclusive of value-added tax and all other applicable taxes, duties, and charges, including the service charge.
Under Georgian legislation, in cases of non-compliance or inadequate implementation of the GCCA’s decision within the prescribed timeframe, a fine may be imposed, not exceeding 2% of the trader’s annual turnover for the preceding financial year. The imposition of a fine does not release the trader from the obligation to comply with the Agency’s decision, and any repeated violation within 12 months will result in the fine being doubled.
