Why the Law Regulates Online Store Terms
E-commerce terms and conditions are the document every trader offers to consumers in online trade, and it is precisely in this document that clauses effectively stripping consumers of their rights are often hidden. Terms drafted unilaterally in advance and offered to the consumer on a take-it-or-leave-it basis require special legal control. The Georgian Law on Protection of Consumer Rights exercises this control in several directions: Article 21 establishes the rules on standard terms, Article 22 defines the invalidity of unfair terms, and Article 23 sets out the exceptions to that invalidity, while Articles 11, 12 and 13 govern off-premises and distance contracts, including the trader's information duties and the consumer's right of withdrawal. Understanding this framework allows both traders drafting their terms and consumers facing unfair clauses to assess the situation correctly.
What Counts as a Standard Term
Under the law, a standard term of a contract is a term established by the trader for the consumer, pre-formulated and intended for repeated use, which the consumer had the opportunity to familiarise themselves with. An online store's terms and conditions are exactly such a collection of standard terms. If a trader claims that a particular term was individually negotiated between the parties, the trader must prove it: the burden of proof lies on the trader. Standard terms offered to the consumer in writing must be drafted in simple and understandable language, and any term that allows more than one interpretation is construed in the consumer's favour. This means that vague wording is the trader's problem, not the consumer's, and an ambiguously drafted clause cannot be used against the person it was addressed to.
Unfair Standard Terms Are Void
An unfair standard term is void notwithstanding its inclusion in the contract if it contradicts the principles of trust and good faith and causes a significant imbalance in the parties' rights and obligations to the consumer's detriment, including through ambiguity. When assessing unfairness, the subject matter of the contract, the circumstances existing at the time of conclusion that led to the inclusion of the term, and the other terms of the contract are taken into account. The law directly names the clauses that are always void:
- excluding or limiting the trader's liability for the consumer's death, damage to health or other loss caused by gross negligence, where this resulted from the trader's act or omission;
- unjustifiably restricting the consumer's right to bring a claim against the trader or a third party for non-performance or defective performance, or excluding the set-off of claims;
- entitling the trader to retain sums paid by the consumer where the consumer refuses the contract and what the consumer receives is not commensurate with that sum;
- granting the trader a unilateral right to withdraw from the contract in situations where the consumer has no equivalent right;
- automatic extension of a fixed-term contract without the consumer's consent, or setting an unreasonably short period for expressing the will to terminate or continue;
- setting the price at the moment of delivery or increasing it so significantly that the consumer is deprived of the opportunity to withdraw;
- restricting the consumer's access to legal protection, including forcing disputes exclusively into foreign arbitration or restricting the ability to obtain evidence.
The invalidity of an unfair term does not automatically invalidate the remaining parts of the contract, provided the term is not essential and the contract can reasonably be presumed to have been concluded without it. Article 23 also provides exceptions: certain terms of financial services contracts, including changes to interest rates or commission for justified reasons, are not considered void if the trader immediately informs the consumer, who then has the right to withdraw. A different regime also applies to prices linked to stock exchange quotations or foreign currency markets, which the trader cannot control.
Information Duties in Online Sales
In the case of a contract concluded away from business premises, the trader must supply the information required by law to the consumer in the Georgian state language, in writing, clearly and comprehensibly, and hand over a signed copy of the contract or another document confirming its conclusion. In distance contracts this information is provided through a means of distance communication, clearly and comprehensibly, and where it is supplied on a durable medium it must be perceptible. When a distance contract is concluded by electronic means, the trader must ensure that, when ordering, the consumer unambiguously acknowledges that placing the order incurs an obligation to pay; if the trader fails to ensure this, no payment obligation arises for the consumer. Before the ordering process begins, the trading website must clearly display information on delivery restrictions, where they exist, and on the means of payment. In telephone communication, the trader must state its identity and the commercial purpose of the call at the very start. The trader must confirm the conclusion of the distance contract on a durable medium within a reasonable period, but no later than delivery of the goods or commencement of the service.
The Right of Withdrawal from Distance Contracts
Except for the exceptions established by law, the consumer may withdraw from a distance or off-premises contract without giving any reason within 14 calendar days. For services, the period runs from the conclusion of the contract; for a sale, from the moment the consumer or a third party indicated by them, other than the carrier, acquires possession of the goods; for staggered deliveries, from the moment of acquiring possession of the last item; and for regular deliveries, from the first item. Upon withdrawal, the consumer bears no costs at all, except where they chose a more expensive delivery option than the standard one offered by the trader. Withdrawal automatically terminates connected contracts and triggers restoration of the original position. The consumer must send the completed form or other unequivocal evidence of withdrawal to the trader within the period, and it is the consumer who bears the burden of proving that the right was exercised in time. If the trader fails to provide information about the right to return the goods or service, the return remains possible for 12 months after the basic period expires; where the information is provided within those 12 months, a 7-day return period runs from receipt of that information.
Frequently Asked Questions
How long do I have to cancel an online order?
You may withdraw from a distance contract without stating any reason within 14 calendar days. For goods, the period runs from the moment you acquire possession of the item; for services, from the conclusion of the contract.
What if the store never told me about my withdrawal right?
If the trader supplies no information about the right of return, you may return the goods or service within 12 months after the basic period expires. If the trader provides the information during that period, a fresh 7-day return period starts from the moment you receive it.
Can a store automatically renew my fixed-term contract?
No. A term under which a fixed-term contract is extended automatically without the consumer's consent, or which sets an unreasonably short time for expressing the will to continue or terminate, is listed among unfair terms and is void.
Does clicking the order button create a payment obligation?
Only if the trader ensured that, when ordering, you unambiguously acknowledged that placing the order incurs an obligation to pay. Without that, no payment obligation arises for you at all.
How We Help on Legal.ge
On Legal.ge we help you legally assess the terms and conditions of an online store: we identify which clauses are void, determine withdrawal periods and procedures, plan a claim against the trader, and, where necessary, represent your interests before the National Body for Protection of Consumer Rights or in court. Contact us so that your case can be assessed on the basis of the specific documents involved.