Competition Agency Finds Mihouse in Violation of Consumer Rights During Promotional Period
The Georgian Competition and Consumer Protection Agency (GCCA) has determined that Hualingi-Building Materials Hypermarket LLC, operating through the website www.mihouse.ge, engaged in unfair commercial practices, violating the Law of Georgia on Consumer Rights Protection.
The violation pertains to a promotional campaign that offered discounts of up to 90% in celebration of the company's anniversary. The promotion was widely advertised on the Mihouse Facebook page and through television broadcasts, creating significant consumer interest.
According to the GCCA's findings, a customer purchased four heating boilers through the Mihouse website after confirming their price and availability with a company operator. However, the company later refused to deliver the products, citing a technical error on the website that allegedly displayed incorrect prices. The company argued that the erroneous prices should not have been interpreted as genuine, and therefore the transaction could not be considered valid.
The GCCA, however, ruled that the company’s actions constituted unfair commercial practices. Under Georgian law, it is prohibited to promote goods or services at special prices and then fail to honor those prices, whether by refusing to display the goods, accept orders, or deliver them within a reasonable timeframe.
"According to legislation, a trader is required to honor the advertised price and satisfy the consumer's request, regardless of intent. Such actions, which are misleading and undermine consumer trust, are considered fundamentally unfair and are prohibited," the GCCA stated.
The agency concluded that Mihouse violated consumer rights and ordered the company to rectify the situation by restoring the affected consumers' rights within one month. Additionally, Mihouse must revise its trade policies to align with legal standards.
This case underscores the importance of transparency in promotional activities and highlights the GCCA's commitment to ensuring consumer trust and maintaining market integrity.