E-commerce provides businesses with unprecedented opportunities to enter new geographic markets, expand customer reach, and automate retail operations. However, selling online does not exempt a company from legal obligations. On the contrary, digital merchants in Georgia operate within a highly structured legal framework where customer terms, order flows, and liability are largely governed by the company’s website architecture, electronic order forms, and standard terms and conditions.
Having a technically functional website is not enough. Every touchpoint of an online store – from product displays to checkout buttons and email receipts – must comply with Georgian e-commerce and consumer protection laws.
What Information Must an Online Store Display on Its Website?
When entering into distance contracts, consumers cannot physically inspect products before purchase. Consequently, Articles 5 and 10 of the Law on Consumer Rights Protection require traders to provide comprehensive, accurate, and clear information before a customer completes an order.
Mandatory Pre-Contractual Disclosures:
- Trader Identification: Full registered company name, identification number, registered and physical business addresses, email address, and customer service phone number.
- Essential Product Attributes: Precise specifications, technical features, and usage conditions of goods or services.
- Final Pricing & Additional Charges: Total price inclusive of all applicable taxes (including VAT), plus all delivery, freight, or postal charges. Where additional costs cannot be calculated in advance, explicit notice must be given that such charges may apply.
- Payment & Delivery Terms: Accepted payment methods, exact delivery procedures, and the expected delivery timeframe.
- Warranties & Complaint Handling: Terms of statutory (2-year) or commercial warranties, alongside internal procedures for processing consumer complaints.
- Right of Withdrawal (Return Policy): Conditions, deadlines, and procedural steps for exercising the statutory 14-day right of withdrawal, including the standard cancellation form (or explicit notice if an item is legally exempt from returns).
- Language Requirement: Under Georgian law, all mandatory consumer information provided on websites targeting consumers in Georgia must be available in the Georgian language.
To meet the legal requirements applicable to online stores, businesses should ensure that their contracts and website terms reflect the specifics of their operations. Contract drafting and legal review can help businesses prepare and review their contractual documentation.
Placing an Online Order and Payment Obligations
The electronic ordering process must be designed so that consumers fully understand the binding financial and legal consequences of placing an order.
Under Article 12 of the Law on Consumer Rights Protection, where a distance contract is concluded electronically, the trader must ensure that the ordering process explicitly alerts the consumer that clicking the final confirmation button creates an immediate obligation to pay.
Legal Requirements for the Order Button and Website Design
- Explicit Button Wording: The final button used to place an order must be labeled with unambiguous wording such as ‘Order with obligation to pay’, ‘Buy Now’, or ‘Confirm Payment’. Ambiguous labels (e.g., ‘Continue’, ‘Register’, ‘Next’) render the contract non-binding on the consumer.
- Order Summary Display: Immediately before placing the order, the consumer must be presented with an explicit summary displaying total costs and order items.
- Electronic Receipt Confirmation: The merchant must send an electronic confirmation of order receipt (e.g., automated email) without undue delay.
Online Purchases: The 14-Day Withdrawal Period and Legal Exceptions
Georgian consumer protection law grants buyers a fundamental safeguard in distance shopping: the unconditional right to withdraw from a distance contract (return the product) within 14 calendar days without giving any reason and without incurring penalties.
- For Goods: The 14-day window begins on the day the consumer or a designated third party takes physical possession of the goods.
- For Service Contracts: The window begins on the day the contract is concluded.
- Failure to Disclose Return Rights: If the merchant fails to inform the consumer about withdrawal rights before contract conclusion, the withdrawal period extends by an additional 12 months!
When Does the Right to Return Online Purchases Not Apply?
The law provides exhaustive exceptions where the 14-day return right does not apply due to the specific nature of the goods or services. Merchants must explicitly outline these in their T&Cs:
- Custom-made or personalized goods tailored to the consumer’s specific instructions.
- Perishable goods or items liable to expire rapidly (e.g., food, flowers).
- Sealed goods unsealed after delivery which are unsuitable for return due to health protection or hygiene reasons (e.g., cosmetics, undergarments, medical supplies).
- Supply of digital content (downloads/streaming) if performance has begun with the consumer’s prior express consent and acknowledgment of losing withdrawal rights.
- Sealed audio, video recordings, or software unsealed after delivery.
- Newspapers, periodicals, and magazines (excluding subscription contracts).
Upon receiving notice of withdrawal, the merchant must refund all payments received from the consumer (including standard initial delivery charges) within 14 calendar days, using the same payment method used by the consumer. In addition, goods are backed by a statutory 2-year warranty for defects.
Online Store Terms and Conditions and Platform Liability
Relying on generic website Terms & Conditions does not ensure legal compliance. Standard terms must be carefully aligned with Georgian statutory law.
Under the Civil Code of Georgia and consumer protection statutes, standard clauses that violate good faith principles or unfairly restrict statutory consumer rights are legally void and unenforceable. Correct legal categorization is paramount:
Direct Retailer: Bears direct liability for product quality, delivery, statutory 2-year warranty, and returns.
Intermediary Platform (Marketplace): Under the Law on E-Commerce, intermediary service providers benefit from a conditional liability exemption (Hosting Exemption) regarding third-party illegal content/products, provided they lack actual knowledge of illegality and act expeditiously to remove or disable access upon notification.
Conclusion: How to Ensure Legal Compliance for Your Online Business
E-commerce compliance requires businesses to address consumer protection obligations and maintain contractual documentation tailored to their operations. The law firm Nomos Georgia’s corporate and business law services support domestic and international companies with legal matters related to their business activities. To discuss your company’s needs, contact Nomos Georgia.
