Consumer Protection Research Articles

Legal Analysis of E-Commerce Transactions Based on the ITE Law and Consumer Protection Law in Indonesia

This research aims to find out how the legal position of the parties in the implementation of online arisan and to find out how legal protection for online arisan members who are harmed due to default. The research method used is normative research method. The purpose of this method is to identify legal principles, legal rules, and expert opinions to answer issues related to legal problems, such as the legality of online arisan agreements according to the Civil Code and legal protection for online arisan members in the event of default by one of the parties. From the research conducted, the author obtained the following results: First, the legal position in online arisan consists of the arisan owner as the first party, arisan members as the second party, and the admin or arisan assistant as the third party. If there is a default during the implementation of online arisan, the aggrieved party can choose to resolve the problem through family channels. If the family route is unsuccessful, then dispute resolution must be pursued through legal channels in court by submitting a subpoena. Although the online arisan agreement is unwritten, the agreement is still considered valid. Second, legal protection for online arisan members includes preventive and repressive legal protection. Preventive legal protection for online arisan members is regulated in Article 28 paragraph (1) of Law Number 19 of 2016 Concerning the Amendment to Law Number 11 of 2008, which regulates prohibited acts in electronic transactions, as well as Article 1320 and Article 1338 of the Civil Code, which regulates the provisions of the agreement so that it can be implemented properly. Meanwhile, repressive legal protection is regulated in Article 45 to Article 52 of Law Number 19 of 2016, which regulates sanctions for violation of provisions, as well as Article 1243 of the Civil Code, which discusses compensation due to default.

Final parity rule strengthens consumer protections, improves MH, SUD access

In the first update to the Mental Health Parity and Addiction Equity Act (MHPAEA) in nearly 10 years, the federal government on Sept. 9 enacted final federal rules to ensure that people with mental health and substance use disorders (SUDs) receive similar insurance coverage for their care as they would for physical health conditions.

Advertisements for prescription-free drugs and dietary supplements in the Deutsche Apotheker Zeitung (German Pharmacist Journal).

The Deutsche Apotheker Zeitung (DAZ, German Pharmacist Journal) is an independent pharmaceutical newspaper focusing on science and practice, mainly for the profession of pharmacist. In this study, drug advertising in the DAZ was analysed. To our knowledge, there is little scientific data available on drug advertising in professional journals. We assumed that professional journals provide particularly good background information on the advertised drugs because they are targeted to specialists. All non-prescription medicines and preparations that fall under the Medicines Advertising Law (Heilmittelwerbegesetz, HWG) were studied. The Medicines Advertising Law regulates the legal procedure for advertising medicinal products in Germany. The 167 product advertisements from the 52 issues of 2021 were analysed and checked for compliance with the Medicines Advertising Law. We identified significant deficiencies in compliance with the legislation. These included the lack of mandatory information required by the Medicines Advertising Law, for example the indication of adverse drug reactions and the listing of contraindications. There are very few peer-reviewed references on the efficacy of the advertised preparations. A scientific validation was carried out using the PubMed database, with the result that scientific information was available only for 1/3 of the advertisements. In addition, the appearance and target groups as well as social structures, images and feelings conveyed by the advertising were analysed. This study provides insights into the mechanisms of drug advertising in professional journals, which have not yet been researched to any great extent. Even in professional journals, pharmacological evidence plays a much smaller role than marketing, psychology and traditional social values. It seems that drug manufacturers deliberately ignore the German Medicines Advertising Law to advertise their products in the best possible way. Stricter legal controls should be put in place to prevent this practice and protect consumers from misinformation. This will increase drug safety.

Perlindungan Hukum Terhadap Konsumen Dalam Jual Beli Pakaian Bekas (Thrifting) Melalui Aplikasi TikTok

Abstract This research aims to provide an explanation regarding the legal provisions governing the legality of buying and selling second-hand clothing or thrifting through the TikTok application in Indonesia, as well as the protection offered by law to consumers who purchase second-hand clothing. To complement that objective, this research employs a Normative Juridical method using a Legislative approach. This research shows the following results: First, the practice of buying and selling second-hand clothing in Indonesia is not prohibited; however, if the second-hand clothing being sold is imported, this contradicts the Minister of Trade Regulation Number 51 of 2015 concerning the Prohibition of Importing Second-Hand Clothing and the Minister of Trade Regulation Number 40 of 2022 concerning Prohibited Export and Import Goods. Therefore, it is established that the activity of buying and selling imported second-hand clothing is ILLEGAL. Second, consumer protection in the buying and selling of second-hand clothing can be carried out in two ways: preventively, through the establishment of legislation on consumer protection, and repressively, through resolution between both parties (non-litigation) or by filing a lawsuit in the General Court (litigation). Keywords: Buying and Selling, Second-Hand Clothing, Import, Law, Consumer Protection.

A Comparative Analysis of the Design and Implementation of the Twin Peaks Model of Financial Regulation in South Africa and Australia

Abstract In response to the 2007-2009 global financial crisis, South Africa, like most other countries, embarked on a journey of financial regulatory reform. This transformation has seen the country shift away from a silo approach, where various sectoral regulators supervise different financial institutions, towards the Twin Peaks model of financial regulation. The term “Twin Peaks” refers to the separation of regulatory functions between two independent regulators. For instance, one regulatory agency is responsible for the supervision of the safety and soundness of financial institutions, and the other is focussed on the regulation of business conduct. The Twin Peaks model is designed to provide the benefits and efficiencies of an integrated approach while simultaneously addressing inherent conflicts between the objectives of the safety and soundness of the financial system and consumer protection. The Financial Sector Regulation Act provides for the Twin Peaks model in South Africa. This Act positions South Africa as one of the first developing countries to adopt the model. On the other hand, Australia is the pioneer of the model since it implemented it in 1998. Its implementation in Australia, much as in South Africa, involved the separation of regulators for prudential soundness on the one hand and market conduct and consumer protection on the other. In this article, the authors provide a comparative analysis of the design and implementation of the Twin Peaks model in Australia and South Africa. They argue that while there are minor differences between the design and implementation of this model in Australia and South Africa, the model was customised and implemented to align with the specific needs of each country

A Statutory Analysis of the Role of the Courts in Protecting Financial Consumers' Rights in the Zimbabwean Banking Sector: The Penelope Case in Context

Abstract The Zimbabwean banking sector has experienced several tumultuous challenges since 2000. This is owing chiefly to the political and economic challenges the country has experienced. Poorly conceived and ill-timed policies have also wreaked havoc in the Zimbabwean banking sector. Financial consumers have sometimes lost their savings to hyper-inflation or overnight policy changes in Zimbabwe. The change in currencies is a good example of how financial consumers have seen their deposits and savings at banks and other related financial institutions eroded to nothing. In 2018, the Reserve Bank of Zimbabwe (RBZ) issued a directive for all banks to convert all deposits made prior to October 2018 from the United States (US) dollar denomination to the Zimbabwean dollar (bond notes and coins). This was done on an exchange rate of one US dollar as to one Zimbabwean dollar, yet in reality, the local currency had been devalued. The RBZ directive left individuals and corporates reeling from exchange losses. The directive was akin to a heist and many people lost trust and confidence in the Zimbabwean banking sector. While many financial consumers suffered in silence, some decided to take their banks to court, demanding a reimbursement of their deposits in the currency in which they deposited or alternatively, the equivalent of the original deposit using the correct exchange rate. This article examines the role of the courts in upholding the rights of financial consumers in the Zimbabwean banking sector in the light of the Penelope case. It also discusses how the Zimbabwean courts could assist in preserving the sanctity of the bank-client relationship among banks and financial customers. In addition, the article explores the role of the courts in challenging unjust laws that affect financial consumers' investments in banks. The strengths and weaknesses of the Zimbabwean banking regulatory framework are further discussed to assess if it is robust enough to protect financial consumers. The article recommends that the courts should objectively set aside unjust laws in the interest of justice to enable banks and other financial institutions to honour their contractual obligations. Policymakers should not adopt poor policies that infringe upon financial consumers' rights. Keywords: Banking sector; consumer protection; financial consumer; deposits; exchange rate; courts.

The AI Revolution: A New Paradigm of Economic Order

Abstract Artificial intelligence (AI) constitutes a new technological revolution that has far-reaching, somehow paradigmatic implications for the economy and as well as for the society – for good and for evil. Given the specific properties of artificial intelligence this article analyses the economic consequences of AI on productivity and growth, the distribution of income as well as on firms, markets, and competition. It argues that artificial intelligence is creating a new economic order that requires new approaches to economic policy and regulation. Issues of how to maintain competition, protect consumer rights, promote AI literacy and preserve ethical standards are at the center of a holistic AI governance.

ADVOCATES EXEMPTION FROM LIABILITY UNDER CONSUMER PROTECTION ACT: OPENING OF A PANDORA BOX OF EXEMPTIONS?

A two-Judge Bench of Honourable Supreme Court (SC) of India in Bar of Indian Lawyers Through its President Jasbir Singh Malik v. D. K. Gandhi PS National Institute of Communicable Diseases and Anr (2024).[1] held that professional services rendered by advocates fall under “contract of personal service” as opposed to a “contract for service” and accordingly, advocates are exempt from liability for deficiency in services under the Consumer Protection Act (CPA), 2019. The judgement brings the contentious issue of advocate’s liability as ‘service providers’ under the Act back to focus. The case arose out of challenge to a ruling by National Consumer Disputes Redressal Commission (NCDRC) in D.K. Gandhi PS v. M. Mathias (2007) [2]. The NCDRC made advocates liable as service providers under CPA. The apex court, in fact, also went on to opine that the landmark SC ruling by three-judge bench in Indian Medical Association v. V P Shantha (1995)[3] delivered almost 3 decades ago needs reconsideration and referred it to the Chief Justice for determination by a larger bench. This article seeks to uncover the liability of advocates as service providers in light of landmark supreme court judgements and the implications of recent judgement on other professions.

Vulnerable to Inadequate Representation?

Abstract Collective redress mechanisms pose manifold challenges for the individualistic two-party paradigm of civil procedure. The EU Representative Actions Directive – transposed into German law with the Consumer Rights Enforcement Act (Verbraucherrechtedurchsetzungsgesetz – VDuG) – is built on a representative mechanism: Qualified entities (ie mostly consumer organisations) may bring actions on behalf of consumers for injunctive or redress measures against traders infringing consumer protection law. An often-neglected facet of collective redress is the vulnerability of absent plaintiffs, if collective judgments bind absent plaintiffs regardless of the adequacy of their representation. Consumers relying on their representatives could lose their actually well-founded claims as a result of inadequate representation by the representative consumer organisation and its attorneys. This article considers post-judgment safeguards against inadequate representation: As a procedural remedy, so-called collateral attacks would allow consumers to negate the binding effect of the collective judgment in cases of inadequate representation. Complementarily, the analysis turns to remedies in substantive law and considers the viability of liability actions against the representative consumer organisation or its attorneys.

Obstacles in the Implementation of Online Loans in Indonesia (Based on Protection Law Consumer)

Online loans are platforms that allow individuals or businesses to apply for and obtain loans over the internet. Online loans offer convenience and accessibility. However, there are also illegal online loans that are harmful to their users. This is the background for the emergence of two problem formulations, namely how legal regulations governing the practice of online loans and how consumer legal protection in online loans. The research method used is normative juridical. The results found that Financial Services Authority (Otoritas Jasa Keuangan/OJK) as the responsible authority has issued Financial Services Authority Regulations (Peraturan Otoritas Jasa Keuangan/POJK) No. 77/POJK.01/2016 on Information Technology-Based Money Lending and Borrowing Services. However, the implementation and effectiveness of this regulation is still a big challenge. Many online lending platforms operate without a license and ignore the applicable regulations, thus posing a high risk to consumers. Recipients of online loans can be said to be consumers because they are users of a service. In this case, online loan services, consumer protection has been regulated in Law No. 8 of 1999 of Consumer Protection, and regarding consumer protection in online loans has also been regulated in POJK No. 77/POJK.01/2016 and Bank Indonesia Regulation No. 3 of 2023 on Bank Indonesia Consumer Protection, although there are already regulations governing online loan consumers, online loan consumer protection is still a problem because many illegal online loans are always looking for loopholes and circumvent existing regulations.

Regulating Buy Now Pay Later (BNPL) in Asean: a Comparative Analysis on Regulatory Challenges and Opportunities

This study provides a comparative analysis of the regulatory frameworks governing Buy Now Pay Later (BNPL) services across ten ASEAN countries: Indonesia, Malaysia, Singapore, Thailand, the Philippines, Laos, Brunei Darussalam, Vietnam, Myanmar, and Cambodia. As BNPL services rapidly expand throughout the region, understanding the diverse regulatory landscapes and their implications becomes increasingly critical for fostering financial stability, consumer protection, and innovation in the digital financial ecosystem. Utilizing a literature review methodology, the research examines existing regulations, legal frameworks, and market trends, assessing their impact on financial stability, consumer protection, and fintech innovation. Singapore is identified as the leader in regulatory practices, effectively balancing fintech innovation with stringent consumer protection. Indonesia and Malaysia emphasize financial inclusion and systemic risk management, with Indonesia's framework focusing on transparency and financial literacy. Thailand and the Philippines are refining their frameworks, while Myanmar, Laos, Brunei, Vietnam and Cambodia are still developing their regulatory approaches. BNPL services, driven by growing e-commerce and fintech ecosystems, offer significant opportunities for financial inclusion but also pose challenges related to over-indebtedness, credit risk, and data protection. The analysis emphasizes that while BNPL presents significant opportunities for financial inclusion and fintech innovation, effective regulation is critical to ensuring sustainable growth and protecting consumers from debt traps and financial instability.

Perlindungan Hukum Terhadap Konsumen Jasa Titip Online Dalam Hal Terjadinya Cacat Produk

The development of the online shopping system has given rise to new business opportunities, one of which is known as a buying and selling service. One of the risks for users of ticketing services is the danger of defects in products received by users of online ticketing services. Based on this, what is the legal protection form of consumers of online ticketing services in the event of a defect in the product received? And how are online delivery service business actors responsible for losses received by consumers for defective goods products. This research uses a normative type of legal research. There are two forms of legal protection for consumers of online ticketing services in the event of product defects received through online buying and selling services, namely preventive and repressive legal protection which can be seen in the provisions of the UUPK. The responsibility of online delivery service business actors for losses received by consumers for defective goods products, in addition to rights and obligations, there are also responsibilities that must be carried. This responsibility is part of a binding obligation in the activities of running a business.

Perlindungan Hukum Terhadap Data Pribadi Nasabah Oleh Bank Dalam Transaksi Melalui Internet Banking

Technological advances have been able to give birth to services that facilitate daily activities such as the presence of internet banking services. However, there are still many problems related to the unprotection of customer personal data. The formulation of the problem from this study is how to legally protect the security of customer personal data by banks in internet banking services and how bank accountability in terms of personal data belonging to customers is not protected due to the use of internet banking services. The research method used in this thesis research is a normative type of legal research with a type of statutory and conceptual approach. The data sources used are prime, secondary, and tertiary data sources. The collection of legal materials is carried out through a library study. The results showed that the form of preventive legal protection was carried out by providing socialization through the platform to inform about the protection of customer personal data and the applicability of the ITE Law and the Telecommunications Law which provides a protection to prevent disputes against customers. The form of repressive legal protection is carried out through the existence of the Consumer Protection Law which is the basis for the fulfilment of consumption rights. The form of bank liability to customers in the event of a data leak is that the bank will provide compensation if it is proven that it is true that the data leak is not caused by the customer's negligence or mistake.

Perlindungan Konsumen Pengguna Jasa Parkir Atas Pelepasan Tanggung Jawab Pelaku Usaha Parkir Menerapkan Klausula Baku dalam Mencapai Keadilan Berkontrak

The Consumer Protection Act 0.8 of 1999 contains provisions regarding the rights and obligations that consumers and business actors have. For example, consumers who have not received legal justice in standard agreements that create business actors, seeing the phenomenon that occurs, namely agreements made by parking business actors for consumers who use parking services, basically to meet the needs of a significant number of consumers, to make it easier for parking business actors, agreements that made for consumers who use parking services to be printed in bulk in the form of standard clauses contained in parking tickets that are made unilaterally. However, this authority contains the potential for fraud for parking business actors through the existence of a clause that is not permitted. The contents of this clause are based on the UUPK which is a clause that contains the loading of the responsibility of the businessperson for the consumer which is contained under Article 18 paragraph 1. From this it can be said that there are still many parking business actors who, in stipulating standard clause agreements in the form of parking tickets, violate the provisions of the Protection Act. Consumers are related to the discrepancy of the clause in UUPK to obtain contractual justice for consumers. With the existence of an agreement that uses the standard clause it is not allowed so that the legal consequences according to the explanation of Article 18 paragraph 3 UUPK are null and void.

Juridical Review of E-commerce Selling and Buying on Consumers and Buyers in Indonesia

The use of e-commerce in the world of trade has had a huge impact on Indonesian society, this is related to very important legal issues. The importance of legal issues in the field of E-commerce, especially in providing legal protection for consumers who carry out buying and selling transactions via the Internet. This development emerged due to offers and acceptance from the public, as evidenced by the emergence of various online stores such as Kaskus, Tokopedia, Bukalapak, Shopee and Lazada. This research aims to find out and analyze legal protection for consumers in online buying and selling transactions (e-commerce) and to find out and analyze legal remedies that can be taken by consumers if there is a default in online buying and selling transactions (e-commerce). The approach method used in this research is a normative juridical approach. The specification of this research is descriptive analysis. The data source used is secondary data, which consists of primary, secondary and tertiary law. The data collection tool is library research. The data analysis technique used is qualitative analysis. The results of this research and discussion are legal protection for e-commerce users by upholding consumer rights in accordance with Law Number 8 of 1999 concerning Consumer Protection articles 19, 20, 21, 24, and 26 and regulations related to the implementation of online buying and selling (e-commerce) and the implementation of consumer protection is also supported by involving several parties such as the government, national consumer protection bodies and non-governmental consumer protection institutions. Legal efforts that can be taken to resolve defaults in Law Number 8 of 1999 concerning Consumer Protection are litigation and non-litigation.

Implementation of Indonesian Banking Legal Policy in Consumer and Creditor Protection

This article examines the implementation of Indonesian banking legal policy in the protection of consumers and creditors. The study employs a normative juridical approach to evaluate existing banking regulations and their effectiveness in practice. The primary focus is on the legal protections provided to banking consumers and creditors in cases of loan defaults and dispute resolution. The findings reveal that although Indonesia’s banking regulations have undergone several updates to enhance consumer and creditor protection, there remains a significant gap between the policies and their practical application. The article identifies several factors contributing to this gap, including insufficient regulatory oversight, the complexity of legal procedures, and a lack of consumer awareness regarding their rights. To improve protection, the article recommends strengthening the regulatory framework, enhancing the capacity of supervisory institutions, and intensifying public education on consumer and creditor rights in the banking sector.

Konsekuensi Penetapan Tarif Minimal Pelayanan Jasa Notaris sebagai Upaya Melindungi Hak Notaris Guna Kepastian dan Keadilan

Notaries have an important task in providing legal services to the public, particularly regarding the making of authentic deeds. The determination of minimum service rates for notaries by the Indonesian Notary Association (INI) is regulated in the Notary Code of Ethics with the aim of preventing unfair competition and protecting the rights of notaries. This research aims to analyze the form of the agreement on the determination of minimum service rates for notaries, evaluate the role of INI in determining these rates, and examine the legal consequences of violations of the minimum rate determination. This is a qualitative research with a single case study approach in Hulu Sungai Selatan Regency, South Kalimantan. Data was collected through in-depth interviews with notaries, clients, and other related parties, observations at notary offices, and studies of relevant documents. The determination of minimum rates by INI is carried out through a mechanism of study and evaluation by the INI Regional Administrators which is submitted to the INI Central Administrators to be determined nationally. This determination is a form of agreement that binds all INI members. Violations can be subject to sanctions from the INI organization as well as administrative sanctions from the Notary Supervisory Board. Obstacles in implementing the minimum rates include differences in operational costs between regions, resistance from notaries, weak monitoring and law enforcement, and a lack of flexibility in facing changing economic conditions. Efforts that can be made include determining varying rates, socialization and education, forming a supervisory body, a mechanism for rate adjustments, and maintaining a balance with consumer protection.

Analisis Putusan Sengketa Ekonomi Syariah Pengadilan Pasaman Barat Tentang Putusan Arbitrase Bpsk Nomor 1409/ARB/BPSK-BB/IX/2016

The great interest of the public today regarding Islamic economics, in line with the increasingly massive number of people who become customers in all Islamic Banks, which is likely to have an impact on the emergence of disputes. As an example at this time is the matter of sharia economic disputes, initially a consumer protection complaint was made through BPSK Batu Bara Regency, which then the BPSK Decision was made a Legal Objection to the West Pasaman District Court with Decision Number 55/Pdt.Sus-BPSK/2016/PN.Psb by Bank Syariah Mandiri Pasaman Barat, and was appealed to the Supreme Court of the Republic of Indonesia with Decision Number 622 K/Pdt.Sus-BPSK/2017. The purpose of this study is to determine the extent to which the law enforcement of dispute resolution is in accordance with the provisions and its application seen from the contents of the decision number Case Number 622 K/Pdt.Sus-BPSK/2017; and Decision Number 55/Pdt.Sus-BPSK/2016/PN Psb. While the location of the Dispute is in West Pasaman, West Sumetara. The result of this research is that it turns out that there is still a limited understanding of the actors of Islamic banking business activities who do not fully understand the regulations.

Elemental tracer determination and modeling for geographical origin designation of sweet oranges

Sweet oranges have long been an integral part of global health and culinary practices, offering a wealth of nutrients and bioactive compounds. Ensuring the authenticity of these citrus fruits is essential for maintaining consumer confidence, promoting transparency in sourcing, and protecting producers' reputations in the marketplace. In this study, we explored the feasibility of using multi-element profiling combined with pattern recognition algorithms to trace the origin of sweet orange samples. To achieve this, we employed an optimized microwave plasma atomic emission spectroscopy (MP-AES) method to analyze the elemental composition (Al, Ba, Ca, Cd, Co, Cr, Cu, Fe, K, Li, Mg, Mn, Mo, Na, Ni, Pb, Sr, and Zn) of 183 orange samples from four production regions in northeastern Argentina. Support vector machine (SVM), random forest (RF), and gradient boosting tree (GBT) models were then built using the collected data to identify elemental tracer's indicative of origin. Based on a comprehensive evaluation of overall accuracy, receiver operating characteristic (ROC) curves, and area under the curve (AUC), the GBT model demonstrated the best classification performance, achieving a 96.5 % correct prediction rate on test samples, as confirmed by the ROC curve (AUC = 0.973). Consequently, this approach provides compelling evidence for the potential utility of MP-AES combined with supervised modeling to determine the geographic origin of sweet oranges produced in Argentina, thereby contributing to consumer protection against fraud.

The Consumer Protection Framework of Macau Scam in Malaysia

Technological advancements have enabled the rise of various fraudulent schemes, with the Macau or phone scam becoming particularly prevalent in Malaysia. Regardless of the extensive publicity surrounding the Macau scam, every individual is susceptible to becoming a victim. Macau scam poses a significant threat, causing victims to lose their hard-earned money and suffer severe financial and psychological consequences. Hence, the primary aim of this study is to explore the consumer protection framework that safeguards consumers from Macau scammers. The investigation encompassed the current legislation and institutions pertaining to the Macau scam, which includes the existing laws and institutions related to the Macau scam. Document analysis was employed to collect information from government reports, journals, articles, laws, and other relevant materials concerning scams. The research findings suggest that the current consumer protection framework regarding the Macau scam in Malaysia can be further enhanced. Such improvement can be accomplished by strengthening the current legislation and advocating for measures to educate consumers.