Sun, 11 Feb 2001

Highlights of the 1999 Consumer Protection Law

JAKARTA (JP): The Consumer Protection Law was issued by the Directorate General of Home Trade, Ministry of Industry and Trade and enacted on April 20, 1999. It consists of 14 chapters and 65 articles.

Chapter 1 gives explanations on the terminology used and on the Consumers Protection Society (Lembaga Perlindungan Konsumen Swadaya Masyarakat/LPKS), the Consumers Arbitration Agency (Badan Penyelesaian Sengketa Konsumen) and the Consumers Protection Agency (Badan Perlindungan Konsumen Nasional).

Chapter 2 contains articles on consumer protection: for consumers, protection awareness improves consumers' ability, among others things, to protect themselves, avoid bad experiences when using products or services, seek legal protection and access information. On the part of traders, merchants and goods and services suppliers, an awareness of consumer protection compels them to be responsible and to improve the quality of goods and services to ensure the health, comfort, security and safety of their consumers.

Chapter 3 is about the rights and obligations of consumers and the traders or business entities: consumers have the right to enjoy comfort, safety and security when using goods and services, to make choices, to have information on the condition and guarantee of goods and services, to complain, to have legal assistance and to get reimbursement and compensation as regulated. Consumers should follow the instructions and procedures when using goods and services; they should also pay as appropriate and follow all necessary legal processes.

Traders, merchants and business entities have the right to get payments, legal protection and the appropriate advocacy in lawsuits against the consumers. They must give thorough information on the quality standard and specification of goods and services on purchase and provide compensation where necessary.

Chapter 4 states points that traders or merchants should not do, including producing goods and services below the specified standards of weight, condition, guarantees and composition. Product labels should contain, among other things, expiry dates, time of usage and halal and non-halal certifications. This chapter also provides rules covering the promotion or advertisement of goods and services and regulates the advertising business.

Chapter 5 regulates "fixed clauses", the binding terms and conditions unilaterally set by the businesses that the consumer cannot question as stated in their documents.

Chapter 6 lists the responsibilities of businesses, including guarantees, spare-parts and after sales service.

Chapter 7 states the government's responsibilities on overseeing consumer protection regulations.

Chapter 8 explains the National Consumers Protection Agency (Badan Perlindungan Konsumen Nasional) and its handling of control, education, protection, and development of human resources and research. Articles in this chapter also regulate the membership, and organization of the agency.

Chapter 9 explains the role of the Consumers Protection Society (Lembaga Perlindungan Konsumen Swadaya Masyarakat) in promoting consumers' awareness on their rights and obligations. The organization works together with other agencies in assisting consumers in filing complaints/lawsuits, as well as promoting public control on the consumer protection mechanism.

Chapter 10 regulates the filing of complaints, lawsuits, other legal actions and solutions.

Chapter 11 is about the Consumers Arbitration Agency (Badan Penyelesaian Sengketa Konsumen) with regard to membership in the agency, its functions, duty and authority.

Chapter 12 sets out the rules for the investigation of violations of consumers' rights.

Chapter 13 is about sanctions.

--Tri Hafiningsih