The Georgian Model of Collective Consumer Protection
The idea of consumer class actions is often associated with the American court model, where a single lawsuit protects an entire class of persons. The Georgian law on consumer rights protection chooses a different path: it establishes administrative collective redress for a violation of the rights of a group of consumers — through a decision of the Competition and Consumer Protection Agency of Georgia that addresses the whole group and obliges the trader to restore the violated right and to cease the prohibited practice. This law does not establish an American-style court class action procedure; a separate court group-litigation regime is not part of the source of this page and is not discussed here. At the same time, applying to the Agency does not deprive the consumer of the right to apply to a court or arbitration or to resolve the dispute through mediation — these routes do not exclude one another.
Routes of Application and the Competence of the Agency
A consumer may apply, concerning a violation of the law, to the Competition and Consumer Protection Agency of Georgia or to the authorized regulator of the relevant field. The Agency's competence does not extend to the spheres of the National Bank, commercial banks, mortgage-covered bonds, investment funds, the securities market, insurance, electronic communications, broadcasting, and energy and water supply, where protection is ensured by a separate authorized body; an application concerning such a sphere is forwarded to that body and the applicant is informed. It studies facts that have caused or may cause a violation of the rights of a group of consumers, requests information from the applicant and the trader, summons the parties for explanations and appoints an expertise where necessary.
Grounds for Opening a Study and the Role of Organizations
The Agency opens a study if it has information that, as a result of the actions of a specific person or persons, the right of a group of consumers is being or may be violated; the ground is a reasonable assumption that the interests of the group are or may be harmed by the violation. An important role belongs to non-commercial legal persons: they may participate in preparing the application where the rights of a group of consumers are violated, cooperate with business associations and state bodies to defend consumer groups, facilitate mediation and join awareness campaigns.