The Georgian Competition and Consumer Agency (GCCA) has established an infringement of the Law of Georgia on the Protection of Consumer Rights by Ridetech Georgia LLC (Yandex Go).
The case concerned the provision of mandatory information to consumers on the Yandex Go online platform, as well as the company’s standard contractual terms. The Agency examined whether consumers were provided with complete statutory information regarding the trader’s identity and contact details. It further evaluated whether contract terms assigning liability for transport services to drivers, alongside provisions permitting the company to modify service conditions without prior notice to consumers, complied with governing legislation.
Following its examination of the case, the Agency established that consumers on the Yandex Go platform were not provided with full mandatory disclosures required by law. In particular, information regarding the trader’s identity and contact details was inadequately presented.
The Agency ruled the company’s standard terms transferring liability for transport services onto the driver to be unfair. In the Agency’s assessment, in the event of consumer rights violations, primary statutory liability rests directly with the trader itself.
Furthermore, the clause permitting the company to unilaterally modify service terms without prior notice to the consumer was deemed unfair.
The Agency established that Yandex Go must be classified as a primary trader providing transport services, rather than a mere intermediary. Accordingly, the company is legally required to provide consumers with clear, unambiguous, and complete disclosures regarding its legal status and the service offered, as prescribed by law.
The Agency also highlighted the necessity of explicitly explaining to consumers their statutory right to withdraw from a distance contract and the precise conditions for exercising that right.
By decision of the GCCA, Ridetech Georgia LLC has been ordered to eliminate the identified infringements, bring its business operations into full compliance with statutory requirements, and restore the infringed rights of consumers within a one-month deadline.
In accordance with governing legislation, failure to comply or improper compliance with the Agency's order within the prescribed deadline will result in a financial penalty of up to 2% of the trader's total annual turnover from the preceding financial year.
