West Science Law and Human Rights Vol.
No.
April 2024, pp.
Comparison of Legal Aspects of Consumer Protection in Ecommerce Transactions and TikTok Shop in Indonesia Loso Judijanto1.
Nuryati Solapari2.
Asma Karim
1IPOSS Jakarta
Universitas Sultan Ageng Tirtayasa
3Universitas Widya Mataram
4Evy Febryani Article Info
ABSTRACT
Article history:
Consumer protection in the digital age presents unique challenges and opportunities, particularly in the context of emerging platforms like TikTok Shop.
This study undertakes a comparative analysis of the legal aspects of consumer protection in e-commerce transactions and TikTok shops in Indonesia.
Through a normative approach, key similarities, differences, challenges, and opportunities are identified, shedding light on the evolving regulatory landscape and its implications for consumers, businesses, and policymakers.
Findings highlight the need for adaptive regulation, enhanced enforcement mechanisms, industry collaboration, and consumer empowerment to ensure a fair, transparent, and accountable digital commerce ecosystem.
Received April, 2024 Revised April, 2024 Accepted April, 2024 Keywords:
Consumer Protection E-commerce Transactions TikTok Shop Indonesia Regulatory Frameworks This is an open access article under the CC BY-SA license.
Corresponding Author:
Name: Loso Judijanto Institution: IPOSS Jakarta e-mail: losojudijantobumn@gmail.
INTRODUCTION
In today's digital age, e-commerce has significantly changed the way goods and technological advances and shifts in consumer behavior .
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This evolution is characterized by the growing importance of mobile commerce, the influence of social media on consumer purchasing decisions, and the emergence of omnichannel retailing and advanced technologies in e-commerce operations .
In addition, the digital landscape has empowered consumers with easy access to information, the ability to compare brands, and the convenience of purchasing from multiple devices, shaping new purchasing behaviors.
Social media has also played an important role in modern commerce, with businesses utilizing it for communication, marketing, and increasing profitability, especially among the youth In Indonesia, a nation leading digital innovation in Southeast Asia, the digital landscape showcases a growing e-commerce sector .
The country's social media user base is rapidly expanding, with 191.
4 million active users in 2022, reflecting a 12.
increase from the previous year .
Technological advancements, particularly the emergence of social media, have significantly impacted social interactions in Indonesia, enabling long-distance connections and fostering collaboration .
Amid challenges Journal homepage: https://wsj.
westscience-press.
com/index.
php/wslhr West Science Law and Human Rights like the Covid-19 pandemic, digital marketing has proven crucial for Micro.
Small, and Medium Enterprises (MSME.
in Indonesia, with 75% utilizing digital marketing and experiencing sales boosts of 10% to 50% .
support MSMEs, especially in marketing, digital strategies are essential, as highlighted in programs like the online marketing strategy socialization in Rancabungur District .
Consumer protection laws have become increasingly crucial in the digital age, especially with the rise of e-commerce and its integration into social media platforms .
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These laws aim to enhance consumer confidence, ensure fair trade practices, protect personal information, and provide effective redress mechanisms.
The evolution of consumer protection mechanisms has been driven by the need to address new challenges posed by online transactions, such as privacy concerns, late or faulty deliveries, and contractual validity in electronic agreements.
The Consumer Protection Act in India, for instance, has been amended to strengthen transparency between consumers and businesses in e-commerce, empowering consumers and pressuring businesses to enhance system transparency.
Overall, robust consumer protection measures are essential to uphold consumer rights, ensure product quality, and foster trust in the digital This research endeavors to explore and compare the legal aspects of consumer protection in two distinct yet interconnected domains: traditional e-commerce transactions and the emerging phenomenon of TikTok Shop in Indonesia.
Traditional e-commerce transactions involve purchases made through dedicated online platforms, while TikTok Shop represents a novel approach where commerce seamlessly integrates with social media content on the popular platform TikTok.
By undertaking a normative analysis, this study seeks to elucidate the existing legal frameworks, regulatory mechanisms, and judicial precedents governing consumer protection in these domains.
LITERATURE REVIEW
1 Consumer Protection in Ecommerce Transactions Consumer protection in e-commerce transactions is a multi-faceted subject that is extensively explored by experts.
They analyse the rights and obligations of consumers and businesses online, along with the regulatory framework to protect consumer interests.
Experts focus on key aspects such as the right to information, emphasising disclosure requirements for informed decision-making .
Ensuring product quality and safety is crucial, with research addressing issues such as counterfeiting and the responsibility to advocate for strong regulatory measures .
Unique challenges in dispute resolution are driving research into alternative mechanisms such as online mediation and arbitration .
Data privacy and security are of paramount importance, leading to investigations into legal frameworks for data protection and cybersecurity, advocating for strong laws and enforcement mechanisms .
2 Legal Framework in Indonesia Consumer protection in e-commerce transactions in Indonesia is primarily governed by Law No.
8 of 1999 on Consumer Protection and its subsequent amendments, alongside laws like the Electronic Information and Transactions Law (UU ITE) .
These legal frameworks aim to ensure a safe and secure environment for online transactions, increase consumer confidence, and set minimum standards for businesses of all sizes .
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Scholars have highlighted the importance of continuous updates to regulations to adapt to evolving technology and industry dynamics, emphasizing the need for a balance between consumer protection and industry growth .
Additionally, preventive and repressive legal protections are crucial to combat fraudulent digital transactions, enhance consumer confidence, and define the liability of QRIS system issuers .
3 TikTok Shop: Emerging Trends and Legal Implications TikTok Shop represents a new frontier in social media-based commerce, allowing users to buy and sell products directly within the TikTok app.
This emerging Vol.
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West Science Law and Human Rights trend has drawn attention from scholars and legal experts who are investigating its legal implications concerning consumer protection, intellectual property rights, and advertising Key areas of inquiry include the regulatory vacuum created by TikTok Shop's rapid growth, raising concerns about consumer protection, fair competition, and intellectual property infringement.
Scholars have analyzed the challenges of regulating TikTok Shop frameworks and proposed strategies for addressing regulatory gaps.
Moreover, the unique nature of TikTok Shop, characterized by short-form video content and influencer marketing, has prompted questions about consumer vulnerability and the effectiveness of current consumer protection measures.
Researchers have delved into issues such as manipulation of consumer behavior on social media platforms.
Additionally.
TikTok Shop's cross-border transactions, presenting challenges related to jurisdiction, applicable law, and the enforcement of consumer rights.
Legal scholars have examined the complexities of regulating cross-border e-commerce and suggested measures to enhance consumer protection in transnational transactions conducted through TikTok Shop.
METHODS
1 Research Design This study adopts a normative research approach, which is well-suited for examining existing legal frameworks, precedents related to consumer protection.
Normative analysis involves evaluating laws, regulations, and ethical principles to assess their adequacy, effectiveness, and consistency with desired norms or standards.
By applying a normative lens, this research seeks to identify strengths, weaknesses, and potential areas for improvement in the legal frameworks governing consumer protection in e-commerce transactions and TikTok Shop.
2 Data Collection A Data for this research will be collected multi-faceted encompassing both primary and secondary Primary data will be gathered through interviews with legal experts, government officials, industry stakeholders, protection organizations.
These interviews, conducted in a semi-structured format, aim to provide valuable insights into practical challenges, perspectives, and experiences related to consumer protection in e-commerce transactions and TikTok Shop.
Meanwhile, secondary data will be acquired through a comprehensive review of relevant literature, including academic articles, legal texts, government reports, court decisions, and industry publications.
This literature review serves to contextualize the research within the broader academic discourse on consumer protection, e-commerce regulation, and social media commerce, while also examining relevant laws, regulations, and policy documents governing consumer protection in Indonesia.
3 Data Analysis The collected data will undergo thematic analysis, a qualitative research method aimed at identifying, analyzing, and reporting patterns .
within it.
This process encompasses several iterative steps:
development, and interpretation.
Initially, all collected data, such as interview transcripts, literature sources, and legal documents, will be comprehensively reviewed to understand the content and pinpoint key themes and Subsequently, relevant data segments will be systematically coded to categorize and organize information based on emerging or predefined themes.
This coding process includes both inductive and deductive Following coding, the data will be scrutinized to discern recurring patterns, similarities, differences, and relationships between themes.
Themes will undergo refinement and development through iterative analysis, considering nuances, contradictions, and diverse perspectives.
Finally, the findings will be interpreted within Vol.
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West Science Law and Human Rights framework, and pertinent literature.
The interpretation will emphasize significant insights, implications, and recommendations derived from the analysis, particularly focusing on comparing the legal aspects of e-commerce transactions and TikTok Shop.
RESULTS AND DISCUSSION
Legal Frameworks Regulatory Mechanisms The examination of legal frameworks and regulatory mechanisms reveals distinct approaches to consumer protection in ecommerce transactions and TikTok Shop in Indonesia.
In the realm of e-commerce transactions.
Indonesia benefits from a wellestablished legal framework governed by Law No.
8 of 1999 on Consumer Protection.
This legislation, along with supplementary regulations such as the Electronic Information and Transactions Law (UU ITE), lays out comprehensive guidelines for safeguarding consumer rights, ensuring product quality, and facilitating dispute resolution.
Under these laws, consumers are entitled to clear information about products and services, including pricing, specifications, and terms of sale.
Sellers, in turn, bear the responsibility for the accuracy and transparency of this information, thereby fostering trust and confidence among Moreover, mechanisms for addressing disputes, such as mediation, agencies, provide avenues for recourse in case of grievances.
Overall, governing e-commerce transactions in Indonesia is characterized by clarity, enforceability, and a balance of rights and Regulatory authorities play a crucial role in monitoring compliance, investigating complaints, and imposing sanctions on non-compliant entities, thereby upholding consumer protection standards and maintaining market integrity.
In contrast, the emergence of TikTok Shop presents novel challenges to existing regulatory frameworks and enforcement While overarching consumer protection laws apply to transactions conducted through TikTok Shop, the platform's unique characteristics, such as short-form video content and influencerdriven marketing, necessitate a nuanced approach to regulation.
The decentralized nature of TikTok Shop, coupled with the diversity of sellers ranging from individual influencers to enforcement efforts and raises concerns about consumer vulnerability.
While TikTok has transparency, such as seller verification and buyer protection policies, ensuring consistent compliance across the platform remains an ongoing challenge.
Furthermore, issues related to deceptive advertising, product authenticity, and consumer redress mechanisms require tailored regulatory responses that account for the platform's distinctive features and user Policymakers must navigate these complexities to adapt existing legal frameworks and regulatory mechanisms to effectively address consumer protection concerns in the context of TikTok Shop.
2 Enforcement and Compliance The enforcement mechanisms and compliance with consumer protection laws sheds light on the differences between traditional ecommerce transactions and TikTok Shop in Indonesia.
In the realm of e-commerce transactions, regulatory authorities have established robust enforcement mechanisms to monitor compliance and address consumer complaints effectively.
These mechanisms include regular audits, investigation of reported violations, and imposition of sanctions on non-compliant businesses.
Regulatory bodies, such as the Ministry of Trade and the Indonesian Consumer Protection Agency, play a crucial role in enforcing consumer protection laws and regulations.
They collaborate with other Vol.
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West Science Law and Human Rights government agencies, industry associations, and consumer advocacy groups to ensure compliance with established standards and promote fair business practices.
Moreover, established e-commerce platforms often have internal mechanisms for monitoring and enforcing compliance among These platforms implement seller verification procedures, user rating systems, and buyer protection policies to maintain trust and confidence among consumers.
As a result, enforcement efforts in ecommerce transactions are characterized by a oversight, and a high level of accountability among businesses.
In contrast, enforcing consumer protection standards on TikTok Shop presents unique challenges due to the decentralized nature of the platform and the diversity of While TikTok has implemented measures to enhance transparency and user safety, such as seller verification and buyer protection policies, ensuring consistent compliance across the platform remains an ongoing challenge.
Regulatory difficulties in monitoring and enforcing consumer protection laws on TikTok Shop due to the platform's global reach and the The decentralized nature of TikTok Shop, coupled with the transient nature of content, poses challenges in identifying and addressing noncompliant behavior effectively.
Furthermore, issues such as deceptive advertising, product authenticity, and consumer redress mechanisms may be exacerbated by the platform's reliance on influencer marketing and peer-to-peer 3 Challenges and Opportunities The examination of challenges and opportunities in consumer protection across e-commerce transactions and TikTok Shop in Indonesia reveals multifaceted dynamics that shape the regulatory landscape and influence consumer experiences.
Challenges One of the primary challenges is adapting regulatory frameworks to keep pace with the evolving digital commerce Rapid technological advancements and the emergence of new business models, such as TikTok Shop, require regulatory agility to address emerging consumer protection concerns effectively.
Enforcing standards on TikTok Shop presents unique challenges due to the decentralized nature of the platform and the diversity of sellers.
Monitoring compliance and addressing noncompliant behavior in this context require innovative enforcement mechanisms and cross-sector collaboration.
Consumers may face increased vulnerability in the digital commerce ecosystem, particularly on platforms like TikTok Shop where influencer marketing and peer-to-peer transactions are prevalent.
Issues such as deceptive advertising, product authenticity, and dispute resolution may necessitating enhanced protections and awareness campaigns.
Opportunities Collaboration between government agencies, industry stakeholders, and digital platforms presents opportunities to enhance consumer protection in the digital commerce Industry self-regulation, voluntary codes of conduct, and collaborative initiatives can complement regulatory efforts and promote responsible business practices.
Leveraging technology, such as blockchain and artificial intelligence, presents opportunities to enhance transparency, security, and accountability in e-commerce transactions and TikTok Shop.
Innovations in identity verification, product authentication, and dispute resolution can strengthen consumer confidence and trust in digital commerce platforms.
Empowering knowledge, awareness, and tools to navigate the digital marketplace is crucial for enhancing consumer protection.
Educational campaigns, user-friendly dispute resolution mechanisms, and transparent disclosure requirements can empower consumers to make informed decisions and assert their rights effectively.
Vol.
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West Science Law and Human Rights DISCUSSION The e-commerce transactions and TikTok Shop in Indonesia reveals nuanced insights into regulatory challenges, and opportunities.
This discussion synthesizes key findings and offers reflections on the implications for policymakers, regulatory authorities, industry stakeholders, and consumers.
Regulatory frameworks in digital commerce must adapt to new platforms such as TikTok Shop, which require a balance between innovation and consumer protection .
Effective enforcement of consumer protection laws is essential for trust in the digital ecosystem, which requires improved monitoring and technological tools .
Collaboration between government, industry, and digital platforms is essential for responsible practices and strong consumer protection .
Empowering consumers through education, dispute resolution mechanisms, and digital literacy is key to safely navigating the digital marketplace .
Addressing regulatory blind spots such as cross-border transactions and data privacy on TikTok Shop is critical for comprehensive consumer protection and market integrity.
Balancing Regulatory Rigor with Innovation The rapid evolution of digital commerce necessitates a delicate balance between regulatory rigor and fostering While traditional e-commerce regulatory frameworks, emerging platforms like TikTok Shop require adaptive regulatory responses that accommodate new business models, technological advancements, and consumer behaviors.
Policymakers must strike a balance between promoting protection, fostering a dynamic regulatory environment that supports responsible business conduct and market integrity.
Enhancing Enforcement Capacities Effective enforcement of consumer protection laws is essential for maintaining trust, confidence, and accountability in the A digital commerce ecosystem.
Regulatory authorities must invest in enhancing enforcement capacities, including monitoring collaboration with other stakeholders.
Moreover, leveraging technology, data analytics, and artificial intelligence can augment enforcement efforts and enable proactive interventions to address emerging risks and challenges.
Promoting Industry Collaboration Collaboration between government agencies, industry associations, and digital platforms is critical for promoting responsible business practices and enhancing consumer Industry stakeholders play a proactive role in establishing voluntary codes of conduct, sharing best practices, and implementing self-regulatory measures that complement regulatory efforts.
By fostering a culture of collaboration and shared responsibility.
Indonesia can create a more resilient and responsive consumer protection framework that adapts to evolving market Empowering Consumers Empowering knowledge, awareness, and tools to navigate the digital marketplace is fundamental to enhancing consumer protection.
Educational campaigns, user-friendly dispute resolution mechanisms, and transparent disclosure requirements can empower consumers to make informed decisions and assert their rights effectively.
Moreover, enhancing digital literacy and promoting consumer advocacy can strengthen consumer resilience against deceptive practices, fraud, and unfair Addressing Regulatory Blind Spots The comparative analysis highlights regulatory blind spots and gaps that require urgent attention from policymakers and regulatory authorities.
Issues such as crossborder transactions, influencer accountability, and data privacy in TikTok Shop warrant targeted interventions and regulatory reforms By proactively addressing these regulatory blind spots.
Indonesia can strengthen its position as a leader in digital Vol.
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West Science Law and Human Rights commerce regulation and promote a fair, transparent, and inclusive marketplace for all CONCLUSION The e-commerce transactions and TikTok Shop underscores the collaborative governance, and consumer Indonesia's commerce ecosystem.
While traditional ecommerce platforms like TikTok Shop require A accommodate new business models and Policymakers, regulatory authorities, industry stakeholders, and consumers must work together to address regulatory blind spots, enhance enforcement capacities, promote responsible business practices, and empower consumers with knowledge and tools to navigate the digital marketplace effectively.
By fostering a culture of trust, confidence, and accountability.
Indonesia can create a resilient and responsive regulatory framework that promotes fair
sustainable economic growth in the digital REFERENCES