Purpose and Legal Basis of Consumer Protection

PERTANYAAN

I have some questions about consumer protection:

1. What does consumer protection law mean?
2. What are the principles of consumer protection?
3. In what article is the purpose of consumer protection law regulated?

ULASAN LENGKAP

Thank you for your question.

This article is an English translation of Tujuan dan Dasar Hukum Perlindungan Konsumen, written by Renata Christha Auli, S.H., and was published on August 2, 2024.

The article below is an update of the article entitled Consumer Protection Law: Scope, Purpose, and Basis, which was first published on July 26, 2022.

All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

What is Consumer Protection?

Answering your first question, consumer protection is any effort that guarantees legal certainty to provide protection to consumers.[1] Consumer protection is carried out so that people do not consume or use goods and or services that can endanger safety, health, and so on.[2]

The scope of consumer protection can be divided into two aspects, among others:[3]

1. protection against the possibility of goods delivered to consumers, not by what has been agreed with consumers; and
2. protection against consumers who receive unfair terms.

Principles of Consumer Protection and Fundamental Rights of Consumers

To answer your second question, the principles of consumer protection are set out in Article 2 of the Consumer Protection Law and its explanation, as follows:

1. Principle of benefit which is intended to mandate that all efforts in the organization of consumer protection shall provide maximum benefit for the overall interests of the consumer and business actor.
2. Principle of fairness is intended so that the participation of all people can be realized maximally and to provide opportunities for consumer and business actor to obtain their rights and fulfill their obligations in a fair manner.
3. Principle of balance is intended to balance the interests of the consumer, business actor, and the government materially and spiritually.
4. Principle of consumer security and safety is intended to guarantee the security and safety of consumers in the usage, consumption, and utilization of goods and/or services which are consumed or used.
5. Principle of legal certainty is intended so that both business actors and consumers will comply with the law and obtain justice in the organization of consumer protection, and the state to guarantee the legal certainty

Furthermore, legal protection for consumers is the protection of consumer rights. Thus, there are three fundamental rights in protecting consumers, namely:[4]

1. the right to prevent consumers from losses, both from personal losses and property losses;
2. the right to obtain goods and/or services at a fair price; and
3. the right to obtain a proper resolution to the problems encountered.

From these fundamental rights, if consumers are really to be protected, then consumer rights must be fulfilled by the state and business actors because the fulfillment of these rights will protect consumers from losses in various aspects.[5]

Therefore, the definition of consumer protection law itself is the entire legal principles and rules that regulate and protect consumers in relationships and issues with providers of consumer goods and/or services.[6] Consumer protection law is also the entire legislation, both laws and other regulations, as well as judges' decisions whose substance regulates consumer interests.[7]

The Purpose of Consumer Protection

Furthermore, to answer your question about the purpose of consumer protection, according to Article 3 of the Consumer Protection Law, consumer protection aims to:

1. improving consumer's awareness, ability, and independence to protect themselves;
2. improving consumer's dignity and standards by way of preventing them from negative excess from the use of goods and/or services;
3. improve consumer's empowerment in choosing, determining, and demanding their rights as a consumer;
4. create a consumer protection system that contains legal certainty and information disclosure as well as access to obtain information;
5. raise awareness of business actors regarding the importance of consumer protection in order to grow an honest and responsible attitude in doing business;
6. improve the quality of goods and/or services that guarantee the continuity of goods and/or services production business, health, comfort, security, and safety of the consumer.

Furthermore, to implement the purpose of legal protection for consumers, the state has the responsibility for the development and implementation of legal protection. The development and implementation of legal protection can be carried out by creating a healthy business climate between business actors and consumers, developing legal protection institutions for consumers, and improving the quality of human resources including in research activities.[8]

Guidelines for Consumer Protection

For your information, the United Nations (“UN”) issued the Guidelines for Consumer Protection, which are a valuable set of principles that set out the main characteristics of effective consumer protection legislation, enforcement institutions, and redress systems. Furthermore, the Guidelines assist interested Member States in formulating and enforcing domestic and regional laws, rules, and regulations that are suitable to their economic, social and environmental circumstances; they also help promote international enforcement cooperation among Member States and encourage the sharing of experiences in consumer protection.[9]

Some of the principles set out in the guidelines are:[10]

1. fair and equitable treatment;
2. commercial behaviour;
3. disclosure and transparency, etc.

In Indonesia, since the existence of the Consumer Protection Law, it is expected that consumer protection endeavors that have been considered less can become one of the priorities of the state. The purpose of organizing, developing, and regulating consumer protection is to increase the dignity and awareness of consumers, and indirectly encourage a sense of responsibility of business actors when conducting their business activities.[11]

In conclusion, consumers are often in a weak position, so since the existence of the Consumer Protection Law, it is expected that consumer protection endeavors that have been considered less will be given more attention. This is because every citizen is entitled to legal protection, one of which is consumer protection. In addition, the UN has also issued guidelines governing key principles of consumers, consumer protection laws, and assists member states in formulating and enforcing domestic laws, rules, and regulations regarding consumer protection.

Also read: 3 Principles and 5 Legal Fundamentals of Consumer Protection Law

These are the answers we can provide about consumer protection law, we hope you will find them useful.

Legal Basis:

Law of the Republic of Indonesia Number 8 of 1999 on Consumer Protection.

Reference:

1. Abdul Halim Barkatullah. Framework Sistem Perlindungan Hukum bagi Konsumen di Indonesia. Bandung: Nusa Media, 2016;
2. Wiwik Sri Widiarty. Hukum Perlindungan Konsumen. Depok: PT Komodo Books, 2016;
3. Yapiter Marpi. Perlindungan Hukum Terhadap Konsumen atas Keabsahan Kontrak Elektronik dalam Transaksi E-Commerce. Tasikmalaya: PT. Zona Media Mandiri, 2020;
4. Zulham. Hukum Perlindungan Konsumen. Jakarta: Kencana Prenada Media Group, 2013;
5. Guidelines for Consumer Protection, accessed on August 2, at 14.00 Western Indonesian Time.

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[1] Article 1 number 1 of the Law of the Republic of Indonesia Number 8 of 1999 on Consumer Protection

[2] Wiwik Sri Widiarty. Hukum Perlindungan Konsumen. Depok: PT Komodo Books, 2016, p. 9-10

[3] Zulham. Hukum Perlindungan Konsumen. Jakarta: Kencana Prenada Media Group, 2013, p. 22

[4] Abdul Halim Barkatullah. Framework Sistem Perlindungan Hukum bagi Konsumen di Indonesia. Bandung: Nusa Media, 2016, p. 15

[5] Abdul Halim Barkatullah. Framework Sistem Perlindungan Hukum bagi Konsumen di Indonesia. Bandung: Nusa Media, 2016, p. 15

[6] Yapiter Marpi. Perlindungan Hukum Terhadap Konsumen atas Keabsahan Kontrak Elektronik dalam Transaksi E-Commerce. Tasikmalaya: PT. Zona Media Mandiri, 2020, pp. 103-104

[7] Zulham. Hukum Perlindungan Konsumen. Jakarta: Kencana Prenada Media Group, 2013, p. 24

[8] Abdul Halim Barkatullah. Framework Sistem Perlindungan Hukum bagi Konsumen di Indonesia. Bandung: Nusa Media, 2016, p. 17

[9] Preface of the Guidelines for Consumer Protection

[10] Article 11 letter a, b, c Guidelines for Consumer Protection

[11] Abdul Halim Barkatullah. Framework Sistem Perlindungan Hukum bagi Konsumen di Indonesia. Bandung: Nusa Media, 2016, p. 23