IMPORTANCE OF FINANCIAL SERVICES’ TRANSPARENCY AND THE FINANCIAL EDUCATION FOR THE PROTECTION OF CONSUMER RIGHTS IN GEORGIA

George  Gavtadze; Aza  Iphshiradze

doi:10.46361/2449-2604.10.2.2023.205-219

George Gavtadze
Aza Iphshiradze

DOI: https://doi.org/10.46361/2449-2604.10.2.2023.205-219

Keywords: Consumer rights, financial literacy, financial education strategy

George Gavtadze

Email:george.gavtadze@atsu.edu.ge

Professor, Akaki Tsereteli State University

Kutaisi, Georgia

https://orcid.org/0000-0001-6080-0163

Aza Iphshiradze

Email:a.iphshirdze@unik.edu.ge

Professor, Kutaisi University

Kutaisi, Georgia

https://orcid.org/0009-0005-8373-3043

Abstract. The issues of financial services’ transparency, consumer rights protection, financial education are relevant and the feasibility of their study is determined by the features of social-economic development. To overcome the problem, to some extent, it is possible to create and develop regulatory schemes for the protection of consumer rights. As research shows, priorities and practical implementation of consumer rights protection differ from country to country. The regulation is mainly aimed at providing complete information about the product to the consumer. However, in addition to imperative regulatory norms, in developed countries, the existence of self-regulation mechanisms, such as codes of conduct, is also of great importance.

Despite the adoption of a number of laws and legislative acts, creation of regulatory documents, etc., in terms of further improvement of consumer rights protection, at the modern stage, the greatest emphasis is still placed on financial education and raising consumer awareness. Consumer rights protection and financial education are two sides of the same coin and serve the same purpose.

For more than a decade, many countries have been implementing projects aimed at raising the level of financial education, which, for the most part, is manifested in the development of a national strategy for financial education. It should be noted that the need to develop a national strategy is often coupled with consumer financial protection and financial inclusion measures. At the same time, it should take into account and be adapted to the needs and shortcomings of a specific country.

As a result of the analysis of the current situation, we can conclude that the improvement of financial services, the protection of consumer rights and their financial education can bring significant benefits not only to individuals or groups of people, but also to the country as a whole (both developed and developing).

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