Competition and Consumer Protection Agency reports significant increase in consumer appeals in 2024
In 2024, the Georgian Competition and Consumer Protection Agency (GCCA) experienced a substantial increase in the number of consumer appeals, nearly doubling the total number of applications compared to the previous year. Specifically, the agency recorded 890 applications in 2024, compared to 495 in 2023.
In 2024, GCCA confirmed violations of consumer group rights in 198 cases, a significant increase from 82 cases in 2023. Furthermore, the agency signed contracts with traders in 193 cases, outlining conditional obligation agreements to restore violated consumer rights and modify their trade policies under the law.
Failing to adhere to the agency’s requirements led to 56 traders being fined GEL 60,000 for 92 cases in 2024. In contrast, 11 traders were fined GEL 21,283 for 22 cases in 2023. It is worth noting that, in the period spanning 2023-2024, a remarkable 90% of completed cases were resolved in favour of consumers, with their demands being satisfactorily met.
To foster fair and transparent trade practices, GCCA developed a price indication guidance document in 2024 and established several crucial standards, including:
1. Unit Price Standard: Goods that are not pre-packaged and are weighed or measured in front of consumers must display the unit price (e.g., 1 kilogram, 1 litre, 1 meter, 1 square meter, etc.).
2. Discount and Special Offer Standard: When announcing discounts, traders must indicate three different prices: the referenced (pre-discount), discounted, and lowest price assigned to the goods or services within the last 30 days.
3. Price Indication Standard in Advertising: Traders must indicate the price alongside other essential information when distributing information about specific goods and/or services for sales purposes.
4. Menu Price Indication Standard: Menus in bars and restaurants must display the final price of food and drinks, including VAT and other charges (including service fees).
Last year, the Georgian government supported the first National Consumer Protection Strategy, aimed at strengthening coordination among six regulatory bodies in consumer protection during 2024-2027. This document was prepared on GCCA’s initiative and includes tasks such as preparing reports on legislative changes, developing guidance documents, strengthening international cooperation, raising consumer and business awareness, and other crucial activities necessary for addressing sector challenges.
Internationally, GCCA received the World Bank Group award in 2024, which recognized the agency’s high standards in consumer rights protection and enforcement at an event organized by ICPEN and FTC. GCCA was named among the top three executive agencies of leading countries.
To enhance consumer awareness, GCCA prepared a guidance document outlining recommendations and activities for various target groups, aiming to help individuals plan, organize, and evaluate specific measures for their benefit.