The e-commerce boom in Georgia is driving the rapid growth of marketplace platforms. A marketplace is an intermediary platform connecting buyers and sellers (e.g., Amazon or Uber model). Legally, this is one of the most complex business models because the platform sits at the center of a tripartite relationship: platform-seller, platform-buyer, and seller-buyer. Georgia's new legislation imposes specific obligations on intermediary service providers, including liability for illegal content and products on the platform. A marketplace must strike a balance: not taking on excessive liability for the seller, yet protecting consumer rights and complying with financial regulations. Incorrectly drafted rules (Terms & Conditions) can lead to mass disputes, tax penalties, and reputational collapse.
What does the Marketplace Platform Compliance service cover?
Our service ensures the platform's legal architecture:
- Drafting Terms of Service (ToS): Creating a detailed document regulating rights and obligations, limitations of liability, and dispute resolution.
- Merchant Agreements: Contracts with partner shops/service providers defining commissions, settlements, and product quality liability.
- Consumer Protection: Establishing a Return Policy and complaint handling mechanism in compliance with the law.
- Payment System Integration: Legal structuring of financial flows (Split Payments) considering National Bank regulations.
- Intermediary Liability: Implementing mechanisms for detecting and removing illegal content (e.g., counterfeit products) (Notice and Takedown).
Common Scenarios and Needs
Marketplaces vary widely: Product Marketplace: A platform where various shops sell items. Issue: Who is liable for a defective item? Service Booking: An app for booking cleaners or handymen. Issue: Status (employee vs freelancer?) and damages during service. Rental Platform: Renting apartments or cars. Issue: Property damage and insurance. Freelance Exchange: Buying and selling digital services. Issue: Transfer of intellectual property.
Georgian Legislation and Regulations
Marketplaces are regulated by the Law on E-commerce, which defines the liability of intermediary service providers. The Law on Consumer Rights Protection (obligation to provide information, right of return) is also decisive. The Tax Code governs the financial part (platform taxation vs seller taxation), alongside National Bank rules on payment services. Personal data protection is regulated by the relevant law.
Step-by-Step Process
The lawyer analyzes the business model: is the platform just an information intermediary or involved in the transaction? Based on this, site rules are written. Then, seller onboarding contracts are prepared. The tax model is set up (how commission is deducted). Finally, a procedure for responding to consumer complaints is implemented to avoid fines from the Competition Agency.
Why Legal.ge?
Running a marketplace is like walking through a legal minefield. Legal.ge offers e-commerce lawyers who know how to protect the platform from excessive liability while creating a trustworthy environment for users. We will help you build a scalable and legal digital business. Choose experts on Legal.ge.
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