by Setyawati Fitrianggraeni, Yoga Adi Nugraha, Melvin Julian*

INTRODUCTION

In 2023, in the context of buying and selling activities in online stores which are currently very massive for the Indonesian people, the Ministry of Trade issued a new regulation, namely Regulation of the Minister of Trade Number 31 of 2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trading Through Electronic Systems  (“Permendag No. 31/2023“). The issuance of Permendag No. 31/2023 is a revision of the previous regulation, namely Regulation of the Minister of Trade Number 50 of 2020 concerning Provisions on Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trading Through Electronic Systems.

KEY CONSUMER PROTECTION MEASURES

In connection with the Government’s efforts in improve consumer protection, especially in trade through electronic systems, Permendag 31/2023 requires Business Actors to have a consumer complaint service [1]. The consumer complaint service must be displayed clearly on a page that is easy for consumers to read[2]. Furthermore, the consumer complaint service must include a contact number and/or email address that must be contactable and respond-able. By providing a contact, the obligation for business actors to have consumer complaint services makes it easier for consumers to provide complaints or grievances regarding the services provided by business actors in relation to the goods and/or services they sell. This complaint service facilitates consumers to interact directly regarding their complaints, thereby encouraging increased protection for consumers who purchase goods/services through electronic systems.

In addition to requiring business actors to have consumer complaint services, Traders (Merchants) are required to display information regarding evidence of compliance with Goods and/or Services standards, in the form of:

1. goods registration number or Indonesian National Standard certificate or other technical requirements for Goods and/or Services to which Indonesian National Standards or mandatory technical requirements have been applied in accordance with the provisions of laws and regulations;
2. halal certificate number for goods and/or services that must be halal certified in accordance with the provisions of laws and regulations;
3. product registration number for goods related to security, safety, health and the environment for goods that are required to comply with the provisions of laws and regulations; and
4. permit number, registration number, or certificate number for cosmetic, drug, and food products in accordance with the provisions of laws and regulations.[3]

Furthermore, Permendag 31/2023 also stipulates that   With these regulations, consumers can be protected against the goods they want to buy without worrying about the quality of the product because the goods and/or services sold are in accordance with existing statutory regulatory standards.

Regulations regarding Electronic Advertising based on Minister of Trade Regulation No. 31/2023 as an effort to increase consumer protection in Indonesia

 Based on the increased sales of goods and/or services, business actors can create and/or send electronic advertisements for marketing or promotional purposes[4]. The electronic advertisements include information delivered through electronic media and/or electronic communication channels. In the case of Electronic Advertisements delivered through PPMSE facilities, PPMSE must comply with the provisions of laws and regulations in the field of broadcasting, protection of privacy and personal data, and consumer protection, and not conflict with the principles of healthy business competition[5].

In connection with the broadcast of electronic advertisements, Permendag 31/2023 also regulates several provisions, including:

1. not deceive Consumers regarding the quality, quantity, materials, use, and price of Goods and/or Service rates, as well as the timeliness of receipt of Goods and/or Services;
2. not deceive the guarantee or warranty for Goods and/or Services;
3. does not contain erroneous, incorrect, or inaccurate information regarding Goods and/or Services;
4. contains information regarding the risks of using Goods and/or Services;
5. does not exploit events and/or a person without the permission of the authorized party or the consent of the person concerned; and
6. provides a function to exit the Electronic Advertisement display which is indicated by a close, skip, or close sign and is placed in a clear place so that it is easy for Consumers to close the Electronic Advertisement in question.[6]

If electronic advertisements are found to be in conflict with applicable laws and regulations, then PPMSE is required to terminate access to electronic advertising materials on its electronic media. Furthermore, Permendag 31/2023 also authorizes the Directorate General of Consumer Protection and Trade Order to order or terminate access to electronic advertising materials displayed by PPMSE that are in conflict with laws and regulations[7]. This regulation can certainly provide a sense of security and comfort for consumers, especially providing a sense of objectivity to consumers when carrying out buying and selling activities in online stores.

CONCLUSION

In order to support the empowerment of micro, small, and medium enterprises, as well as business actors in trade through domestic electronic systems, protect consumers, encourage the development of trade through electronic systems, and pay attention to dynamic technological developments, it is necessary to re-regulate provisions regarding business licensing, advertising, coaching, and supervision of business actors in trade through electronic systems, the Ministry of Trade then issued Permendag 31/2023. Permendag 31/2023 to regulate several matters in the field of consumer protection, including

1. Obligations for Business Actors to provide consumer complaint services and also obligations regarding the provision of information needed by consumers to provide a sense of security and comfort for consumers when conducting buying and selling activities in online stores; and
2. Regulations regarding provisions for electronic advertisements displayed by PPMSE so as not to violate the provisions of applicable laws and regulations.

 

Setyawati Fitri Anggraeni is the Managing Partner at Anggraeni and Partners, leading the firm with extensive expertise and strategic insight. Yoga Adi Nugraha serves as the Managing Associate in White Collar Crime Defenses. Melvin Julian, an Associate at the firm in practice group Domestic Civil Litigation

 

References :

[1] Article 9 point (1) Permendag 31/2023.

[2] Article 9 point (2) Permendag 31/2023.

[3] Article 11 point (1) Permendag 31/2023.

[4] Article 23 point (1) Permendag 31/2023.

[5] Article 26 Permendag 31/2023.

[6] Article 28 Permendag 31/2023.

[7] Article 30 point (1) Permendag 31/2023.

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Anggraeni and Partners, an Indonesian law practice with a worldwide vision, provides comprehensive legal solutions using forward-thinking strategies. We help clients manage legal risk and resolve disputes on admiralty and maritime law, complicated energy and commercial issues, arbitration and litigation, tortious claims handling, and cyber tech law.

 

S.F. Anggraeni

Managing Partner

fitri@ap-lawsolution.net

 

Yoga Adi Nugraha

Managing Associate

yoga@ap-lawsolution.net

 

Melvin Julian

Associate

melvin.jn@ap-lawsolution.net