On June 13, 2023, the Parliament of Georgia passed a new Law of Georgia on Electronic Commerce.

This law lays down the legal and economic framework for activities carried out through electronic communication networks and associated facilities, the principles for creating and regulating a competitive environment in this field, determines the functions of the national regulatory authority (the Georgian National Communications Commission), and the rights and obligations of natural and legal entities in the process of possessing or using electronic communication networks and facilities, or when providing services via such networks and facilities. The new law aims to foster the growth of the digital economy in Georgia.

One of the key objectives of this law is to safeguard the rights of consumers and establish obligations for service providers to disclose essential information during e-commerce transactions. Additionally, the law imposes specific requirements for commercial messages. For instance, commercial message and the sender should be easily/clearly identifiable.

The law also introduces new regulations for intermediary service providers, which are entities that solely transmit information to consumers through technical means, such as telecom operators and e-commerce platforms. These providers are not held liable for the content of commerce itself unless they are directly involved.

Enforcement of the law falls under the jurisdiction of the National Competition Agency of Georgia, which has the authority to address and resolve consumer complaints in this field. Violating the law may result in administrative penalties for the service provider, with the maximum monetary fine set at 2% of their previous year’s annual turnover. Repeat violations within a twelve-month period may lead to double the initial fine.The new legal obligations outlined in this law will come into effect 190 days after its publication.

The implementation of this legislation is expected to foster the growth of the digital economy and provide a solid foundation for the continued development of electronic commerce in Georgia.