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1. According to Article 8, producing and/or trading
goods and/or services which, among others,
• are not in compliance with the required
standard and provisions of the law;
• are not in accordance with the net weight, net
volume and the total amount as stated on the
label of the specific goods;
• do not follow halal production processes for
products with halal label;
• do not have labels explaining the name, size, net
weight and volume, composition, directions,
product dates, side effect, name and address of
the company or other information required to
be labeled or mace by the law; or
• do not include information and/or directions
on the use of the goods in Indonesian language
to conform with the prevailing provisions of
the law.
2. According to Article 9, misleadingly offering,
promoting or advertising goods and/or services
which, among others,
• are not in good and/or new conditions;
• are not available; or
• have hidden defects.
3. According to Article 10, offering, promoting,
advertising or providing incorrect or misleading
statements regarding, among others,
• the price or rate or the use of the goods and/or
services;
• the condition, warranty, guarantee, right to
compensation on goods and/or services; or
• the discount or attractive prices offered.
4. According to Article 11, in sales or auctions,
cheating or misleading consumers by, among
others,
• not intending to sell the offered goods, but with
the intention to sell other goods;
• not supplying the goods in certain and/
or sufficient numbers or amount with the
intention to sell other goods; or
• increasing the prices or rates of the goods and/
or services before selling goods on sales.
5. According to Article 15, offering goods and/
or services by using force or any other methods
which can cause either physical or psychological
annoyance to the consumer.
6. According to Article 17, in particular the
advertising industry is prohibited from producing
advertisements which, among others,
• provide incorrect, wrong or inaccurate
information on goods and/or services; or
• do not provide information on risks of using
the goods and/or services.
c. Standard Clauses
According to the accompanied definitions of Law
8 of 1999, a standard clause is any regulation or
provision and condition unilaterally prepared and
predetermined by the company in the form of a
document and/or an agreement which is binding and
must be met by the consumers. Under Article 18 of
Law 8 of 1999, several requirements for a standard
clause are stated. A company who offers goods and/
or services for trading is prohibited of preparing or
including a standard clause on documents and/or
agreements if, among others:
• it states the transfer of the company’s
responsibility;
• it states that the company reserves the right to
refuse to receive back the goods which are already
purchased by the consumer;
• it states that the company reserves the right to
refuse a refund for the goods and/or services
which are already purchased by the consumer;
• it regulates concerning the authentication to
forfeit the use of the goods or the benefits of the
services purchased by the consumer;
• it states that the consumers are subject to
the new regulation, additional regulation,
continued regulation and/or continuous change
of regulation made unilaterally by the company
during the period the consumer is using the
services he purchased; or
• it states that the consumer gives authority to
the company to impose mortgage, pledge or
guarantee against the goods purchased on
installment by the consumer.
Furthermore, companies are prohibited to include
standard clauses at a place or in a formwhich is difficult
to see or cannot be read clearly or under a statement
which is difficult to understand. If any standard clause
is not in compliance with Article 18 of Law 8 of 1999,
it shall be declared invalid and the company is obliged
to adjust it in accordance with Law 8 of 1999.
d. Liability of the Company
Under Chapter 6 of Law 8 of 1999, the liability of
companies is governed. In general, a company is
obliged to compensate the consumer for any damage,
taint and/or loss as a result of using or consuming the
goods and/or services produced and/or traded by the
company. The compensation shall be in the form of
refund or goods and/or services of the same type or
with equal value. Other forms of compensation can
be health care and/or insurance coverage according to
the prevailing laws. Furthermore, the compensation
has to be provided within seven days after the date of
transaction. The compensationmentioned above does
not exclude the possibility of criminal charges based
on further evidence of the existence of the element of
fault.
