The Georgian National Competition Agency has approved the rules for determining the amount of the fine to be imposed on the trader in case of violation of the Law of Georgia on the Protection of Consumer Rights.
According to the position of the National Competition Agency, the amount of the fine should conform to the trader's economic and financial capabilities, and the amount of the imposed fine should not endanger the trader's commercial activity. In particular, when determining the amount of the fine, the following will be taken into account: the extent of the violation, nature, severity, duration and other circumstances of the violation.
Impose a penalty on a trader in the case of the failure to execute or the improper execution of a decision made by the Agency, the amount of penalty shall not exceed 2% of the annual turnover of the trader for the preceding financial year. Besides, it should not be less than 600 GEL. The trader shall pay the penalty within 1 month from the imposition of the penalty. 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 imposition of the penalty shall not release the trader from the obligation to execute the decision of the Agency.
The purpose of the National Competition Agency's manual for calculating the fine to be imposed on the trader is to contribute to the objective determination of the amount of the fine, in accordance with the interests of the parties. Transparency and objectivity of the process of calculating the amount of the fine.
The Law of Georgia on the Protection of Consumer Rights came into effect on June 1, 2022. The implementation process began on November 1, 2022. For the purpose of timely and effective enforcement of the law, amendments were made in July 2023. Among them, is in the direction of imposing a fine on the trader. The adopted changes are in compliance with EU law and are aimed at bringing Georgian legislation closer to EU law.
