(11) eConsumer Protection
E-Consumer Protection:
Indonesia’s Perspective
Masitoh Indriani, SH., LL.M
Department of International Law
Faculty of Law Universitas Airlangga
[email protected]
Contents
1) Background
2) Question to be addressed
3) E-Consumer’s Rights and Obligation
4) E-Merchant’s Rights and Obligation
5) E-Consumer’s Dispute Settlement
E-commerce sales in Indonesia
(Statista, 2015)
Indonesia top Buzz e–Commerce
(Brandindex, 2015)
Question to be addressed…
Ø Creation of a favorable business environment:
Issues concerning security and authentication
Ø Consumer’s trust and confidence àData
Protection and Privacy
Ø Digital signatures and contracts
Ø Affordable and cheap access: infrastructure
development, “digital divide” issue
Ø Lack of understanding?
Law No.8/1999 on Consumer
Protection
Article 1 (2):
Consumer is every person(user) of goods
and/or services provided in the community,
for their benefit, their families, and for other
and intended to not be traded .
Konsumen adalah setiap orang pemakai
barang dan/atau jasa yang tersedia dalam
masyarakat, baik bagi kepentingan diri
sendiri, keluarga, orang lain maupun
makhluk hidup lain dan tidak untuk
diperdagangkan.
Article 1 (3):
Business entity is any individual or entity (legal and
non legal entity) established and domiciled or
conducting activities within the jurisdiction of the
Republic of Indonesia, either alone or by
agreement , conducting business activities in
various economic fields.
Pelaku usaha adalah setiap orang perseorangan
atau badan usaha, baik yang berbentuk badan
hukum maupun bukan badan hukum yang didirikan
dan berkedudukan atau melakukan kegiatan dalam
wilayah hukum negara Republik Indonesia, baik
sendiri maupun bersama-sama melalui perjanjian
menyelenggarakan kegiatan usaha dalam berbagai
bidang ekonomi.
Does Law No.8/1999 able to reach econsumer???
How to protect them?
E-Consumer’s Rights
Consumer’s Rights (JFK) à
Ø the right to safety
Ø the rights to be informed
Ø the right to choose
Ø the right to be heard
IOCU (the International Organization of Consumers
Union) à
Ø The right to consumer education
Ø The right to redress
Ø The right to a healthy environment
Indonesia à
Law No. 8 Year 1999 on Consumer Protection
Consumer’s Rights à Article 4:
a. hak atas kenyamanan,
keamanan, dan keselamatan
dalam mengkonsumsi barang dan/
atau jasa;
b. hak untuk memilih barang dan/
atau jasa serta mendapatkan
barang dan/atau jasa tersebut
sesuai dengan nilai tukar dan
kondisi serta jaminan yang
dijanjikan;
c. hak atas informasi yang benar,
jelas, dan jujur mengenai kondisi
dan jaminan barang dan/atau jasa;
d. hak untuk didengar pendapat
dan keluhannya atas barang dan/
atau jasa yang digunakan;
e. hak untuk mendapatkan advokasi,
perlindungan, dan upaya penyelesaian
sengketa perlindungan konsumen
secara patut;
f. hak untuk mendapat pembinaan dan
pendidikan konsumen;
g. hak untuk diperlakukan atau dilayani
secara benar dan jujur serta tidak
diskriminatif;
h. hak untuk mendapatkan kompensasi,
ganti rugi dan/atau penggantian,
apabila barang dan/atau jasa yang
diterima tidak sesuai dengan
perjanjian atau tidak sebagaimana
mestinya;
i. hak-hak yang diatur dalam ketentuan
peraturan perundang-undangan
lainnya.
a. the right to the feel comfort,
security, and safety in
consumption of goods and / or
services;
b. the right to choose the goods
and / or services and obtain
goods and / or services in
accordance with the exchange
rate and conditions and
guarantees as promised;
c. the right to information that is
correct, clear, and honest
about the condition and
guarantee of the goods and /
or services;
d. the right to be heard regarding
the opinions and complaints on
goods and / or services used;
e. right to advocacy, protection,
and mediation in consumer
protection;
f. the right to receive guidance
and consumer education;
g. the right to be treated or
serviced properly and honestly
and not discriminatory;
h. the right to obtain
compensation and / or
replacement, if the received
goods and / or services are not
in accordance with the
agreement or not as it should
be;
i. the rights in the other
provisions of other legislation.
e-Consumer’s Obligation
Article 5 Law No. 8 Year 1999 à
Ø The obligation to read or to follow the instructions
and procedures for the use of the information / use
of goods
Ø Good faith
Ø Pay the goods and/or services according to the
exchange rate
Ø Follow the mediation procedures à dispute
E-Merchant’s Obligations
In general…
1. Responsibility for Information
2. Responsibility of Products/Product
Liability
3. Responsibility for Security and
Safety
1) Responsibility on Information
Information à
consumer’s
decision making
Article 3 (d) à
"creating consumer’s
protection should
Standard information contains the elements of
legal certainty and
that must be
transparency and
available à
prices,
access to get
specifications of
INFORMATION"
goods, quality and
other information
3 responsibilities on INFORMATION à
a) the responsibility on the information
on Advertising à Ads must be honest
and not contradicting to the law, no
racist, fair competition
Self Regulatory à businesses ads
should have the code of ethics
b) The responsibility of the information
on electronic contracts
In fact, it is difficult to control
the provision, the governing law,
contract formalities etc.
Self Regulatory à Terms and
Conditions à requires
consumer’s accuracy
c) The responsibility of information on
mediation / dispute settlement
mechanism
Lex Mercatoria (the law of merchants)
Theories????
1. Theory Downloader - Uploader
2. The law of the Server à ISP's liability +
responsibility
3. The Theory of Int'l Spaces
2) Product Liability
Product liability à
direct civil liability
(strict liability) of
the Merchants for
the losses
experienced due
to the use derived
products
Article 19 Law No. 8
Year 1999 à
Form of strict liability à
damage, defamation,
consumer’s loss due to
consume the goods
Tort liability à directly
based on tort
Tort Elements:
1) The element of fault
2) The element of loss
3) Tort’s causal à the
cause of loss
Verification à
Article 28 Law No.
8 Year 1999
3) Responsibility for
Security and Safety
Towards à
- e-payment’s security and safety
- Networks security, trans-border data
flows, communication à Privacy and
Data Protection
- Self regulatory à Certification and
Authentication
Dispute Settlement Mechanism
Article 15 (2) Law No. 8 Year 1999
2 Mechanisms à
1. BPSK/ Consumer’s Dispute
Settlement Body
2. General Court à Civil Court
YLKI/Consumer Protections Watch????
Indonesia’s Perspective
Masitoh Indriani, SH., LL.M
Department of International Law
Faculty of Law Universitas Airlangga
[email protected]
Contents
1) Background
2) Question to be addressed
3) E-Consumer’s Rights and Obligation
4) E-Merchant’s Rights and Obligation
5) E-Consumer’s Dispute Settlement
E-commerce sales in Indonesia
(Statista, 2015)
Indonesia top Buzz e–Commerce
(Brandindex, 2015)
Question to be addressed…
Ø Creation of a favorable business environment:
Issues concerning security and authentication
Ø Consumer’s trust and confidence àData
Protection and Privacy
Ø Digital signatures and contracts
Ø Affordable and cheap access: infrastructure
development, “digital divide” issue
Ø Lack of understanding?
Law No.8/1999 on Consumer
Protection
Article 1 (2):
Consumer is every person(user) of goods
and/or services provided in the community,
for their benefit, their families, and for other
and intended to not be traded .
Konsumen adalah setiap orang pemakai
barang dan/atau jasa yang tersedia dalam
masyarakat, baik bagi kepentingan diri
sendiri, keluarga, orang lain maupun
makhluk hidup lain dan tidak untuk
diperdagangkan.
Article 1 (3):
Business entity is any individual or entity (legal and
non legal entity) established and domiciled or
conducting activities within the jurisdiction of the
Republic of Indonesia, either alone or by
agreement , conducting business activities in
various economic fields.
Pelaku usaha adalah setiap orang perseorangan
atau badan usaha, baik yang berbentuk badan
hukum maupun bukan badan hukum yang didirikan
dan berkedudukan atau melakukan kegiatan dalam
wilayah hukum negara Republik Indonesia, baik
sendiri maupun bersama-sama melalui perjanjian
menyelenggarakan kegiatan usaha dalam berbagai
bidang ekonomi.
Does Law No.8/1999 able to reach econsumer???
How to protect them?
E-Consumer’s Rights
Consumer’s Rights (JFK) à
Ø the right to safety
Ø the rights to be informed
Ø the right to choose
Ø the right to be heard
IOCU (the International Organization of Consumers
Union) à
Ø The right to consumer education
Ø The right to redress
Ø The right to a healthy environment
Indonesia à
Law No. 8 Year 1999 on Consumer Protection
Consumer’s Rights à Article 4:
a. hak atas kenyamanan,
keamanan, dan keselamatan
dalam mengkonsumsi barang dan/
atau jasa;
b. hak untuk memilih barang dan/
atau jasa serta mendapatkan
barang dan/atau jasa tersebut
sesuai dengan nilai tukar dan
kondisi serta jaminan yang
dijanjikan;
c. hak atas informasi yang benar,
jelas, dan jujur mengenai kondisi
dan jaminan barang dan/atau jasa;
d. hak untuk didengar pendapat
dan keluhannya atas barang dan/
atau jasa yang digunakan;
e. hak untuk mendapatkan advokasi,
perlindungan, dan upaya penyelesaian
sengketa perlindungan konsumen
secara patut;
f. hak untuk mendapat pembinaan dan
pendidikan konsumen;
g. hak untuk diperlakukan atau dilayani
secara benar dan jujur serta tidak
diskriminatif;
h. hak untuk mendapatkan kompensasi,
ganti rugi dan/atau penggantian,
apabila barang dan/atau jasa yang
diterima tidak sesuai dengan
perjanjian atau tidak sebagaimana
mestinya;
i. hak-hak yang diatur dalam ketentuan
peraturan perundang-undangan
lainnya.
a. the right to the feel comfort,
security, and safety in
consumption of goods and / or
services;
b. the right to choose the goods
and / or services and obtain
goods and / or services in
accordance with the exchange
rate and conditions and
guarantees as promised;
c. the right to information that is
correct, clear, and honest
about the condition and
guarantee of the goods and /
or services;
d. the right to be heard regarding
the opinions and complaints on
goods and / or services used;
e. right to advocacy, protection,
and mediation in consumer
protection;
f. the right to receive guidance
and consumer education;
g. the right to be treated or
serviced properly and honestly
and not discriminatory;
h. the right to obtain
compensation and / or
replacement, if the received
goods and / or services are not
in accordance with the
agreement or not as it should
be;
i. the rights in the other
provisions of other legislation.
e-Consumer’s Obligation
Article 5 Law No. 8 Year 1999 à
Ø The obligation to read or to follow the instructions
and procedures for the use of the information / use
of goods
Ø Good faith
Ø Pay the goods and/or services according to the
exchange rate
Ø Follow the mediation procedures à dispute
E-Merchant’s Obligations
In general…
1. Responsibility for Information
2. Responsibility of Products/Product
Liability
3. Responsibility for Security and
Safety
1) Responsibility on Information
Information à
consumer’s
decision making
Article 3 (d) à
"creating consumer’s
protection should
Standard information contains the elements of
legal certainty and
that must be
transparency and
available à
prices,
access to get
specifications of
INFORMATION"
goods, quality and
other information
3 responsibilities on INFORMATION à
a) the responsibility on the information
on Advertising à Ads must be honest
and not contradicting to the law, no
racist, fair competition
Self Regulatory à businesses ads
should have the code of ethics
b) The responsibility of the information
on electronic contracts
In fact, it is difficult to control
the provision, the governing law,
contract formalities etc.
Self Regulatory à Terms and
Conditions à requires
consumer’s accuracy
c) The responsibility of information on
mediation / dispute settlement
mechanism
Lex Mercatoria (the law of merchants)
Theories????
1. Theory Downloader - Uploader
2. The law of the Server à ISP's liability +
responsibility
3. The Theory of Int'l Spaces
2) Product Liability
Product liability à
direct civil liability
(strict liability) of
the Merchants for
the losses
experienced due
to the use derived
products
Article 19 Law No. 8
Year 1999 à
Form of strict liability à
damage, defamation,
consumer’s loss due to
consume the goods
Tort liability à directly
based on tort
Tort Elements:
1) The element of fault
2) The element of loss
3) Tort’s causal à the
cause of loss
Verification à
Article 28 Law No.
8 Year 1999
3) Responsibility for
Security and Safety
Towards à
- e-payment’s security and safety
- Networks security, trans-border data
flows, communication à Privacy and
Data Protection
- Self regulatory à Certification and
Authentication
Dispute Settlement Mechanism
Article 15 (2) Law No. 8 Year 1999
2 Mechanisms à
1. BPSK/ Consumer’s Dispute
Settlement Body
2. General Court à Civil Court
YLKI/Consumer Protections Watch????