Georgian NGO “Young Barristers” represented the results of the monitoring on the legal status, trademarks and names of the foreign companies operating in Georgia. The issues of the labor rights of the citizens employed in such companies and social responsibility of the company towards consumers were also discussed within the frameworks of the monitoring.

Salome Goglidze, a lawyer with “Young Barristers” states, that people in Georgia prefer to buy relatively expensive goods or products only because some companies offer their products under the name of trusted foreign brands. However, if we research the issue, it  appears that some companies are not acting honestly on the market, since they have no relevant  quality certifying document, are not part of the franchise agreement and have no particular obligation to inform consumers about their status. The organization focused on the issue of identification of  the companies using  trademarks and symbols legally and if they have relevant permit or license authorizing to  use  organization’s name.   

Only 2 companies out of selected 19  have  cooperated in the process of monitoring and provided complete answers to the questions, asked by organization. 5 organizations answered, that they don’t represent famous foreign brands in Georgia and thus, they considered it unnecessary to answer other questions. 12 companies refused to cooperate within the frameworks of the monitoring at all.

“Young Barristers” has appealed to the following foreign companies with the request to answer the questions for the aim of the monitoring: Carrefour, Coca-Cola, McDonald’s, Socar, Diesel, Radisson, Benetton, Beeline, Swatch, Yves-Roche, Samsung, Forbes, Ziraat Bank, Qatar Airways, Villeroy and Boch,  Swarovski, Vivus.ge, KFC  and  National Geographic. These companies were selected  on the basis of the principle to represent various consumer sector.      

Monitoring has shown, that in two companies –  “Coca-Cola Bottles Georgia” and “Carrefour”,  special services are carrying  out constant monitoring of the rights and obligations of the company employees. Labor contracts are also concluded in accordance with the Labor Code and minimum term of employment is 12 months. According to the information, provided by “Coca-Cola Bottles Georgia” the company is authorized to use brand name, and it is registered in the National Intellectual Property Center; as for the company “Carrefour”, it has not provided any information regarding the issue. “Yves-Roche”, “Villeroy and Boch”, “Swatch”, “National Geographic”, “Forbes” provided information only regarding the use of status Brand. The companies say, that they are not connected with any other  foreign company, they are founded in Georgia and they do not represent neither a branch nor  subsidiary of any company.

Another 12 companies refused to communicate. Therefore information regarding labor rights protection there, as well as their legal status and level of accountability remains unknown. 

The monitoring revealed, that Georgian companies working under the name of foreign companies do not sufficiently assess the priority issue of corporate responsibility and accordingly, it becomes really difficult to provide information for citizens about the status of the companies, their rights on brand, consumer accountability…

About the research: “Young Barristers” work on the research “Foreign Companies in Georgia, their status and Employees” since March, 2015. The monitoring was prepared by organization on the basis of independent initiative.