The Georgian Competition and Consumer Agency has established that LLC Georgian Airways has committed an infringement of the Law of Georgia on the Protection of Consumer Rights. The case concerned an infringement of the undertaking's obligation to provide the service to the consumer in accordance with the terms stipulated under the contract.
In particular, the undertaking caused damage to the consumer's suitcase and subsequently declined to provide compensation in respect thereof.
It should be noted that the consumer was making use of a VIP service, under which baggage was delivered directly to the vehicle. In light of the specific nature of this service, the consumer was not objectively in a position to detect the damage immediately, a circumstance on which the undertaking nonetheless sought to rely in its defence.
The GCCA clarified that, under both international conventions and domestic legislation, the burden of proof in such matters rests with the trader. Georgian Airways was accordingly required to demonstrate that the item had not been damaged through its fault. Having examined the matter, and the undertaking having failed to discharge this burden of proof, an infringement of its obligation to provide the service in a proper manner was confirmed.
In addition, one of the complainants raised an objection concerning the undertaking's standard condition prohibiting passengers from assigning to a third party any claim held against the company. The GCCA clarified that such a standard condition unjustifiably restricts consumers' rights and is to be regarded as an unfair standard condition. However, as the trader removed this provision in the course of the proceedings, the Agency did not, in light of the foregoing, find an infringement in this respect.
Under the GCCA's decision, with a view to remedying the infringement, LLC Georgian Airways was instructed, within one month, to restore the consumer's infringed right and to bring its commercial practices into line with the requirements of the law.
Pursuant to the law, failure to comply with the Agency's decision within the prescribed time-limit, or improper compliance therewith, may render the undertaking liable to a fine of up to 2% of its annual turnover for the preceding financial year. A repeat infringement within a period of 12 months shall result in the fine imposed being doubled.
