The Georgian Competition and Consumer Agency has confirmed that LLC “Electrify Georgia” infringed the Law of Georgia on the Protection of Consumer Rights.

The examination of the case established that the trader had failed to provide the consumer with a service in conformity with the terms laid down in the contract. In particular, owing to a systemic malfunction arising in the course of the charging process of an electric vehicle, the charging station failed to cease the supply of energy notwithstanding a zero demand signal transmitted by the vehicle, whereby the consumer’s vehicle sustained damage.

Notwithstanding the foregoing, the trader declined to provide compensation for the financial damage incurred and, relying on its own internal rules, sought to exempt itself from liability. In the course of the proceedings, the trader failed to discharge the burden of proof incumbent upon it and did not rebut the presumption of improper performance of the service.

The infringement was further found to extend to the company’s trade policy and standard terms. In the Agency’s assessment, the trader’s general terms and conditions contained unfair provisions which unjustifiably exempted the company from liability for damage arising from technical malfunction.

In addition, the trader was found to have engaged in misleading commercial practices. In particular, the company’s terms created in the consumer a false impression that, irrespective of the cause of any technical malfunction, no right to claim compensation for damage subsisted. Such a practice, in the Agency’s assessment, restricted the consumer’s ability to exercise their rights laid down in the law.

Under the Agency’s decision, with a view to remedying the infringement, LLC “Electrify Georgia” is required, within a period of one month, to restore the consumer’s infringed rights, encompassing the restoration of the damaged components to their original condition and the provision of compensation for the damage incurred; to discontinue the unfair commercial practice; and to bring its trade policy into conformity with the requirements of the law.

Pursuant to the legislation in force, non-compliance, or improper compliance, with the Agency’s decision within the established time limit may result in a fine of up to 2% of the trader's annual turnover for the preceding financial year. A repeated infringement within a period of twelve months shall result in the doubling of the fine imposed.