Consumer Protection Law in Indonesia
The rights and obligations of the consumer are regulated in Republic Indonesia Law Number 8 Year 1999 regarding Consumer Protection (Undang-undang No. 8 Tahun 1999 tentang Perlindungan Konsumen).
Article 4 establishes consumer rights as follows:
- The rights to security, comfort and safety in consuming goods and / or services.
- The rights to choose goods and / or services and to obtain these goods and / or services in accordance with the exchange rates and conditions and guarantees promised.
- The rights to have correct, clear and honest information regarding the condition and guarantee of goods and / or services.
- The right to be heard or complained about the goods and / or services which have been used.
- The right to obtain advocacy, protection and proper consumer protection dispute resolution efforts.
- The rights to get guidance and consumer education.
- The right to be treated or served correctly and honestly in a non-discriminatory manner.
- The right to get compensation, indemnity and / or replacement, if the goods and / or services received are not in accordance with the agreement or not as it should be.
- Rights stipulated in the other provisions of laws and regulations.
Apart from these consumer rights, the law also regulates consumer rights which are formulated in the following articles, namely regarding the obligations of business actors. Obligations and rights are actually antinomies in law, so that the obligations of business actors can be seen and as (part of) consumer rights. The obligations of business actors as regulated in Article 7 include:
- In good faith in carrying out business activities.
- To provide true, clear and honest information regarding the condition and guarantee of goods and / or services and provide an explanation of the use, repair and maintenance.
- Treating or serving consumers properly and honestly and not discriminatory.
- Ensuring the quality of goods and / or services produced and / or traded based on the prevailing quality standards for goods and / or services.
- To provide the opportunity for consumers to test, and / or try certain goods and / or services and to provide guarantees for the produced goods and / or traded.
- To provide compensation, indemnity and / or replacement for losses resulting from the use and the utilization of traded goods and / or services.
- To provide compensation and / or indemnity if the goods and / or services received or used are not in accordance with the agreement.
Article 5, Apart from obtaining these rights, consumers also have the obligation to:
- Read or follow information instructions and procedures for the use or utilization of goods and / or services, for security and safety.
- Have good faith in purchasing transactions for goods and / or services.
- Pay according to the agreed exchange rate.
- Participating in proper legal settlement of consumer protection disputes.
Simultaneously, based on Article 6, business actors also have rights that must be protected. The rights of business actors are also part of the obligations of consumers, namely:
- The rights to receive payment in accordance with the agreement regarding the conditions and exchange value of the goods and / or services being traded.
- The rights to get legal protection from consumer actions with bad faith.
- The rights to defend properly in the settlement of consumer disputes.
- The rights to rehabilitate a good name if it is legally proven that the consumer’s loss was not caused by the goods and / or services being traded.
- Other rights which regulated in the other provisions of laws and regulations.
Furthermore, Law Number 8 Year 1999 regarding consumer protection stipulates restrictions for business actors which result in consumer losses. Violation of these prohibitions is a criminal offense.
Article 8, business actors are prohibited from producing and / or trading goods and / or services which:
- Do not meet or does not comply with the required standards and statutory provisions.
- Do not in accordance with net weight, net content, and the amount in the calculation as stated on the label or etiquette of the goods.
- Do not according to the actual size, measure, scale and amount calculated according to the actual size.
- Do not in accordance with the conditions, guarantees, features or efficacy as stated in the label, etiquette or description of the goods and / or services.
- Do not in accordance with certain quality, level, composition, processing, style, mode or use as stated in the label or description of the goods and / or services.
- Do not in accordance with the promise stated in the label, etiquette, description, advertisement or sale promotion of the goods and / or services.
- Do not write down the expiration date or the period of use / utilization that is the best suited for certain goods.
- Do not comply with the provisions for halal production, as stated in the statement “halal” which is stated in the label.
- Do not attaching labels or making descriptions of goods that contain the name of the goods, size, or net weight / content, composition, rules of use, date of manufacture, side effects, names and addresses of business actors, as well as other information for uses which according to the provisions must be installed / made.
- Do not include information and / or instructions for the use of goods in Indonesian Language in accordance with the provisions of the prevailing laws and regulations.
Article 8 paragraph (2) business actors are prohibited from trading defective or used and tainted goods without providing complete and correct information on the goods. Article 8 paragraph (3) business actors are also prohibited from trading damaged, defective or used and tainted pharmaceutical and food supply, with or without providing complete and correct information. Thus, business actors who commit such violations are prohibited from trading these goods and / or services and must withdraw them from circulation.
Article 9, business actors are prohibited from trading, offering, promoting, advertising goods and / or services incorrectly, and / or as if:
- The said goods have fulfilled and / or discounted prices, special prices, certain quality standards, certain styles or modes, certain characteristics, history or certain uses.
- The goods are in good condition and / or new.
- The goods and / or services have obtained and / or had sponsorship, approval, certain equipment, certain benefits, work characteristics or certain accessories.
- The goods and / or services are made by a company that has a sponsor, agreement or affiliation.
- The goods and / or services are available.
- The item contains no hidden defects.
- The goods are completeness of certain goods.
- The goods come from certain areas.
- Directly or indirectly degrading other goods and / or services.
- Using excessive words, such as safe, harmless, does not contain risks or side effects without complete information.
- Offer something that contains an uncertain promise.
Article 10, business actors in offering goods and / or services intended for trade are prohibited from offering, promoting, advertising or making false or misleading statements regarding:
- The price or tariff of the goods and / or services.
2. The utility of the goods and / or services.
3. The conditions, coverage, guarantees, rights or indemnity of the goods and / or services.
4. Offers of discounts or attractive prizes offered.
5. The danger of using goods and / or services.
Article 15, business actors in offering goods and / or services are prohibited to do such a coercion or other means that may cause both physical and psychological disturbances to consumers.
Article 16, in offering goods and / or services through an order, business actors are prohibited from:
- Failure to keep the order and / or the settlement time agreement as promised.
- Not keeping promises for a service and / or achievements.
Article 17, advertising business actors are prohibited from producing advertisements which:
- Fooling consumers regarding the quality, quantity, materials, utility, price of the goods and / or rates of service as well as the punctuality of receiving the goods and / or services.
- Fraud the guarantees of the goods and / or services.
- Contains false, wrong or inaccurate information regarding the goods and / or services.
- Does not contain information about the risks of using the goods and / or services.
The Consumer Protection Law Article 18 paragraph (1) prohibits business actors from including standard clauses in every agreement and document if:
- Declare the transfer of responsibility of the business actor.
- State that the business actor has the right to refuse the return of goods purchased by consumers.
- Declare that the business actor has the right to refuse the return of money paid for goods and / or services purchased by consumers.
- Declare the granting of power from consumers to business actors, either directly or indirectly, to take all unilateral actions relating to goods purchased by consumers in installments.
- Regulate about the proof of the loss of use of goods or use of services purchased by consumers.
- Give business actors the right to reduce the benefits of services or reduce the assets of consumers which are the object of sale and purchase services.
- Declare the consumer’s submission to regulations in the form of new, additional, advanced and / or further amendments made unilaterally by the business actor during the period when the consumer utilizes the service purchased.
Article 18 paragraph (2) also prohibits business actors from including standard clauses whose location or shape is difficult to see or cannot be read clearly, or whose disclosures are difficult to understand. And every standard clause that has been stipulated by the business actor in a document or agreement that meets the provisions as referred to in paragraph (1) and paragraph (2) shall be declared null and void by law, with order that the business actor is obliged to adjust the standard clause which is contrary to the Consumer Protection Law.
Case example for Standard Clauses and Indonesia Consumer Protection Law:
Verdict on Judicial Review at the Indonesia Supreme Court Number 124 PK / Pdt. / 2007 Between PT. Securindo Packatama Indonesia (company) against Mrs. Anny R. Gultom and Mr. Hontas Tambunan.
The Judicial Review Decision rejected the application for judicial review submitted by PT. Securindo Packatama Indonesia based on the first level decision, appeal and cassation which have won Mrs. Anny R. Gultom and Mr. Hontas Tambunan against PT. Securindo Packatama Indonesia, in this case Mrs. Anny R. Gultom and Mr. Hontas Tambunan have lost 1 (one) unit car in a parking area managed by PT. Securindo Packatama Indonesia. Even though there is a standard clause in the parking area managed by PT. Securindo Packatama Indonesia which states: “the parking management party is not responsible for any loss, damage, accidents on vehicles or loss of items in the vehicle and / or that befell people who use the parking area of parking management (parking)”, but PT. Securindo Packatama Indonesia still lost and was sentenced to pay material loss of Rp. 60,000,000 (sixty million rupiah) to Mrs. Anny R. Gultom and Mr. Hontas Tambunan for material compensation costs for the loss of 1 (one) unit of car.
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