Deloitte Consulting LLP seeks a short-term Consultant to remotely, through teleworking develop recommendations on the best suitable policy framework for defined problems and its effective enforcement mechanisms, based on international best practices, to stimulate the development of the e-commerce sector in Georgia or its USAID-funded Economic Governance Program.
The USAID Economic Governance Program (the Program) conducted a systems approach value chain analysis (“assessment”) of the e-commerce sector in Georgia. The assessment identified the e-commerce sector’s lack of credibility and insufficient development of cross-sector services as two core constraints that hinder the development of the e-commerce ecosystem. These weaknesses are also reflected in the gaps in the domestic market and cross-border trade.
The root cause analysis showed that the perceived lack of security in the sector is mainly driven by unfair and misleading commercial practices, digital security and data privacy concerns, and insufficient information to make informed choices while shopping online. Additionally, due to existing poor business practices, e-commerce platforms lack consumer trust, especially SMEs and startups, and struggle to survive and operate.
Currently, no consolidated legal framework exists to regulate the e-commerce sector and protect consumer rights. The Law of Georgia on Consumer Rights Protection ceased to exist in 2012. The legal issues concerning e-commerce activities are regulated by several different Georgian laws, which are general and lack the level of clarification and predictability required for the business sector. Therefore, it is difficult for companies to meet the changing requirements of this fast-growing sector.
The EU-Georgia Association Agreement (the AA) defines the conditions and general terms for e-commerce in the country and requires Georgia to adopt the relevant procedures, including measures for intermediary service providers (ISPs). Additionally, under the AA, Georgia is obligated to harmonize its legislative framework with EU Directive 2011/83/EU on Consumer Rights and its additional provisions. In 2018, the draft Law on E-commerce was developed by the Ministry of Economy and Sustainable Development of Georgia (the MOESD) with the support of the USAID Governing for Growth (G4G) project. Currently, the Government of Georgia (the GOG) is reviewing the draft. In 2019, the draft Law on Consumer Rights Protection was finalized by the Parliament Committee on European Integration, with support from the GIZ Legal Program. Later that year, the final version of the draft was initiated in Parliament. The country also needs to develop and implement effective enforcement mechanisms, which are not covered by the draft Laws.
Today, the Georgian e-commerce industry is in the early stages of development. It is essential not to overregulate the business sector at this stage and take its interests into consideration while approximating Georgian legislation to EU Directives. Therefore, the reform should be based on best international practice, in particular how the e-commerce sector is structured in the United States as well as European experience, to avoid overregulation and ensure an enforceable regulatory framework is implemented for the sector.
Under this scope of work, an international expert will lead the development of workable solutions for existing challenges in the e-commerce sector and its effective enforcement mechanisms. The roles of the GOG and business associations in the enforcement process should be defined. The solutions should be based on best international practice, adjusted to Georgian reality.
The ultimate objective of the Program’s intervention is to stimulate the e-commerce sector in the country to facilitate trade.
The objective of this consultancy is to assist the Program to develop recommendations on the best suitable policy framework for defined problems and its effective enforcement mechanisms, based on international best practices, to stimulate the development of the e-commerce sector in Georgia.
Develop a report on an e-commerce policy framework for the Georgian ecosystem based on best international practice.
The assessment showed that there are no basic requirements for mandatory consumer information, which shoppers need in order to make informed decisions; consumer interests are insufficiently protected online; ISPs’ obligations and liabilities are undefined; and the enforcement of personal data protection is not streamlined. These challenges create the perception of lack of security and, consequently, consumers have a low level of trust in the e-commerce sector. Based on the defined problems as well as other potential challenges, the report should cover, at minimum, the following:
Activity 1.1: Identify several viable solutions based on best international practice, considering all potential models, including regulatory, quasi-regulatory, and self-regulatory frameworks.
Activity 1.2: Develop recommendations on the rules of procedures for enforcement and streamlined notice mechanisms, including but not limited to: consumer rights protection in the e-commerce sector, the role of ISPs, data privacy and security issues, and rights enforcement for copyright holders online.
Activity 1.3: Compare and recommend the preferred option adjusted to the Georgian environment and relevant EU directives. The selection should be based on strong arguments why the preferred option best meets the objectives.
Activity 1.4: Prepare a power point presentation for stakeholders that presents the main findings and recommendations.
We are seeking candidates with the following qualifications:
The estimated level of effort (LOE) allocated for this assignment is 30 days. The tasks will be done remotely and will take place on/around June 1, 2021 until September 30, 2021. If you are interested, please email your CV (template is attached) with the Cover Letter to elberg@deloitte.com and info@egp.ge on April 16, 2020.
Overview
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