In Indonesia, the Consumer Protection Law is regulated by Law Number 8 of 1999 concerning Consumer Protection. Similarities could be found to consumer law from other countries. However, the following are some important points regulated in the Indonesian Consumer Protection Law:
General
Consumer Rights: these define the basic rights of consumers, including the right to obtain correct and clear information about products or services, the right to choose products or services that are safe and appropriate to their needs, the right to obtain compensation if the product or service is defective or dangerous , and the right to obtain legal protection.
Right to Information: Consumers have the right to receive honest and accurate information about the products or services they purchase. This includes information about the price, quality, composition, characteristics and benefits of a product or service.
Protection against Dishonest Business Practices: The Consumer Law prohibits dishonest business practices, such as fraud, false statements, or other manipulative actions that could harm consumers.
Protection of Dangerous Products or Services: These laws contain provisions to protect consumers from harmful products or services. Manufacturers and service providers must comply with established safety standards.
Fair Prices: This law stipulates that the prices for products or services offered to consumers must be honest and fair. Misleading price practices or price fraud are prohibited.
Right to File a Complaint: Consumers have the right to file a complaint if they receive a product or service that is defective or does not conform to what was promised. Hence, the Company must add a compliant service contact for the customer to reach in case of any complaint.
Penalties and Sanctions: The Consumer Law also regulates sanctions and penalties for violations committed by producers, service providers or traders that harm consumers.
Consumer Protection Agency: This law also establishes the Consumer Protection Agency (BPKN) which is tasked with protecting and supervising consumer rights and facilitating the resolution of consumer disputes.
Consumer Protection Law in Online Transaction Activities: Protection for consumers who transact online is regulated by Law Number 11 of 2008 concerning information and electronic transactions (ITE Law) and Government Regulation Number 71 of 2019 concerning the implementation of electronic systems and transactions (PP PSTE).
With the latest regulation on PSE (Electronic System Organizers) and SIUPMSE (Business License for Trading Through Electronic System) established entities engage with online transaction businesses and app-based or website-based transaction businesses are obliged to provide information for consumer complaints and include the directorate of BPKN details on their platform as one of the requirements to get their licenses.
Advertisement
Additionally, when it comes to promoting the product, generating advertisements that fall into the following categories is not allowed:
Misleading consumers about the quality, quantity, materials, uses, and prices of goods, as well as service rates and the expected delivery time of goods and/or services.
Providing false assurances or guarantees for goods and/or services.
Including untrue, inaccurate, or incorrect information about goods and/or services.
Failing to disclose the potential risks associated with the use of goods and/or services.
Exploiting events and/or individuals without obtaining the necessary permissions or approvals from those involved.
Violating ethical and/or legal requirements related to advertising.
Agreement
Business entities offering goods and/or services for commercial purposes are not allowed to incorporate or express standard provisions within any contractual documents which incorporate among others the following circumstances:
Asserting a transfer of responsibility from the business entity.
Declaring the business entity's entitlement to reject the return of purchased items by the consumer.
Proclaiming the business entity's authority to decline refunds for payments made by the consumer for goods and/or services.
Announcing the conferral of consumer authority to the business entity, either directly or indirectly, enabling unilateral actions pertaining to goods purchased by the consumer on an installment basis.
Addressing the burden of proof regarding the loss of functionality of goods or the utilization of services purchased by the consumer.
Business operators are prohibited from incorporating standard clauses that are visually or textually obscure or are presented in a manner that is challenging to understand.
etc
Any standard provisions established by a business entity in contractual documents or agreements, conforming to the criteria as outlined above, are legally rendered null and void.
In conclusion, the Consumer Law stipulates that every consumer has the right to convenience, security and safety in consuming products and services and choosing them according to the exchange rate and conditions according to the agreement. Adhering to the law is compulsory for any established businesses in Indonesia. If found guilty with respect to incorrect business license or providing incorrect information, the result of such a case will not be good for the future of the business.
For more information or inquiry you can contact our consultants.
WhatsApp: +62 859-3323-1567
Email: contact@lglbee.com
Comentarios