Legal Protection of Consumers in Online Transactions: A Case Study of Online Fraud in Indonesia

Erfan Mukhlas  Ali; Febrian  Dirgantara; Didit Darmawan

Authors

Erfan Mukhlas Ali University of Sunan Giri Surabaya
Febrian Dirgantara University of Sunan Giri Surabaya
Didit Darmawan University of Sunan Giri Surabaya

Keywords:

consumer protection, online fraud, legal framework, e-commerce, digital transactions, Indonesia, regulatory challenges

Abstract

The rapid development of information technology has transformed consumer behavior, driving significant growth in online transactions in Indonesia. However, this progress is shadowed by the increasing prevalence of online fraud cases, highlighting the urgent need for robust legal consumer protection. This study examines the effectiveness of current legal frameworks, particularly the Consumer Protection Law (Law No. 8 of 1999) and the Electronic Information and Transactions Law (Law No. 11 of 2008), in safeguarding consumers against online fraud. Despite these regulations, significant challenges persist, including weak enforcement mechanisms, limited digital literacy, and insufficient regulation of platform accountability. Additionally, gaps in evidence validation and ambiguities in existing laws exacerbate consumer vulnerability. Using a normative-empirical approach, this research analyzes relevant legislation and real-world fraud cases to identify weaknesses and propose enhancements. The findings emphasize the necessity of revising and harmonizing existing regulations, strengthening institutional capacities, and fostering collaboration among stakeholders to build a secure digital ecosystem. The study concludes that a comprehensive, adaptive, and integrative legal framework is imperative to bolster consumer trust and sustain the growth of Indonesia’s digital economy.

References

Alamin, S. R. L., D. Nurmalasari, D. Darmawan, & S. Arifin (2021). Comprehensive Relational Value Marketing Framework, Journal of Social Science Studies, 1(1), 299 – 304.

Amin, M. N., A. Herisasono, Mujito, R. K. Khayru, & M. Zakki. (2023). Legal Protection of Consumers in Online Transactions for Counterfeit Halal Products on E-Commerce Platforms, Journal of Social Science Studies, 3(1), 53 – 58.

Anugroh, Y. G., R. Hardyansah D. Darmawan, R. K. Khayru, & A. R Putra. (2023). Consumer Protection and Responsibilities of E-commerce Platforms in Ensuring the Smooth Process of Returning Goods in COD Transactions, Journal of Social Science Studies 3(2), 89 – 94.

Azhari, A. (2021). Legal review of consumer law protection on personal data on digital platform. https://doi.org/10.25041/IPLR.V2I1.2189

Azhari, T. M. A. R., & Soetopo, M. G. S. (2022). Protection of Personal Data in Transactions Using ECommerce in the Perspective of Indonesian Law (An Overview). International Journal of Research and Innovation in Social Science. https://doi.org/10.47772/ijriss.2022.61222

Aziz, A., D. Darmawan, R. K. Khayru, A. S. Wibowo, & Mujito. (2023). Effectiveness of Personal Data Protection Regulation in Indonesia's Fintech Sector, Journal of Social Science Studies, 3(1), 23 – 28.

Baraja, M. U., R. Saputra, P. Saktiawan, F. Dirgantara, S. Waskito. (2023). Implementation and Supervision of Personal Data Protection Law on Online Platforms, Journal of Social Science Studies, 3(1), 101 – 108.

Chen, Y., Hua, X., & Maskus, K. E. (2021). International protection of consumer data. Journal of International Economics. https://doi.org/10.1016/J.JINTECO.2021.103517

da Costa, S., D. Darmawan, & A. de Jesus Isaac. (2022). Self-Identity Formation and Social Perception of Individuals through Interaction on Social Media in a Digital World, Journal of Social Science Studies, 2(2), 273 – 278.

Daud, E. Z., & Suyanto, H. (2024). The Legal Protection on Consumers of E-Commerce Transactions in Indonesia. Law Development Journal, 6(2), 266-278.

Efimtseva, T., & Shadrin, S. (2020, May 27). Legal Regulation of Personal Data in the Digital Economy: Leading Problems and Prospects. https://doi.org/10.2991/ASSEHR.K.200526.058

Erin Ann, O. H. (2005). Choice of Law for Internet Transactions: The Uneasy Case for Online Consumer Protection. University of Pennsylvania Law Review, 153(6), 1883-1950.

Fajar, I., R. Hardyansah, & D. Darmawan. (2024). Development of Cybercrime Law in Indonesia: Challenges and Prospects. Journal of Science, Technology and Society, 5(1), 1-8.

Faridi, F., D. Darmawan, R. Hardyansah, A. R. Putra, A. S. Wibowo. (2023). Legal Protection for Online-Based Lending Consumers, International Journal of Service Science, Management, Engineering, and Technology, 4(2), 34–38.

Fikri, A.Z., S. F. Yulianis, D. Darmawan, S. Sudjai, & M. C. Rizky. (2023). Criminalization in Money Laundering Cases in Indonesia. Journal of Science, Technology and Society, 4(2), 21-30.

Gani, A., R. K. Khayru, & D. Darmawan. (2021). Minimalism Trends in Consumption Behavior: Social Inequality and Industrial Dynamics, Journal of Social Science Studies, 1(1), 129 – 134.

Guamán, D. S., del Alamo, J., & Such, J. M. (2023). Automated GDPR compliance assessment for cross-border personal data transfers in android applications. Computers & Security. https://doi.org/10.1016/j.cose.2023.103262

Infante, A. & R. Mardikaningsih. (2022). The Potential of social media as a Means of Online Business Promotion, Journal of Social Science Studies, 2(2), 45-49.

Irfan, M. & D. S. Negara. (2023). The Effectiveness of Consumer Protection Arrangements in E-Commerce Transactions on the Shopee Marketplace Platform in Indonesia, Journal of Social Science Studies 3(2), 115 – 120.

Issalillah, F. & R. Hardyansah. (2022). The Impact of the Digital Divide and Misinformation on Participation and Trust in Local Communities, Journal of Social Science Studies, 2(2), 7 – 12.

Issalillah, F., & Hardyansah, R. (2024). Relevance of Privacy Within the Sphere of Human Rights: A Critical Analysis of Personal Data Protection. Bulletin of Science, Technology and Society, 3(1), 31-39.

Jaman, U. B., Putri, G. R., & Anzani, T. A. (2021). Urgensi Perlindungan Hukum Terhadap Hak Cipta Karya Digital. Jurnal Rechten: Riset Hukum dan Hak Asasi Manusia, 3(1), 9–17.

Janitra, R. M. S., Az, M. G., & Wisnuwardhani, D. A. (2021). Asas Kebebasan Berkontrak dan Perlindungan Konsumen dalam Kontrak Baku Pada Internet Banking. Jurnal Cakrawala Hukum, 12(3), 334–343.

Kementerian Perdagangan. (2020). Peraturan Kementerian Perdagangan Nomor 50 Tahun 2020 tentang Ketentuan Perizinan Berusaha, Pengawasan, dan Pembinaan Pelaku Usaha Perdagangan Melalui Sistem Elektronik. Berita Negara Republik Indonesia Tahun 2020 Nomor 498. Jakarta.

Kirillova, E. A., Shergunova, E. A., Ustinovich, E. S., Nadezhin, N. N., & Sitdikova, L. B. (2016). The Principles of the Consumer Right Protection in Electronic Trade: A Comparative Law Analysis. International Journal of Economics and Financial Issues, 6(2), 117-122.

Krisharyanto, E., & Setyowati, P. J. (2019). Pengendalian Pre-Project Selling Melalui Prinsip Perlindungan Konsumen Berdasarkan UU Nomor 8 Tahun 1999 Tentang Perlindungan Konsumen. Perspektif, 24(2), 124–130.

Makarim, E. (2008). Kompilasi Hukum Telematika. Gravindo Persada, Surabaya.

Miru, A. (2020). Hukum Kontrak & Perancangan Kontrak. Raja Grafindo, Surabaya.

Nasrudin, F. K., & Latumahina, R. E. (2022). Perlindungan hukum terhadap konsumen kartu sim yang mengalami kebocoran data akibat peretasan. Bureaucracy Journal : Indonesia Journal of Law and Social-Political Governance. https://doi.org/10.53363/bureau.v2i1.137

Nasution, A. (1995). Konsumen dan Hukum. Pustaka Sinar Harapan, Jakarta.

Negara, D.S. & D. Darmawan. (2023). Digital Empowerment: Ensuring Legal Protections for Online Arisan Engagements. Bulletin of Science, Technology and Society, 2(2), 13-19.

Oriento, D.S. Negara, A.R. Putra, S. Arifin, & R. Saputra. (2021). Risks and Legal Protection in Non-Cash Financial Transactions Through E-Wallets, Journal of Social Science Studies, 3(1), 109 – 114.

Permata Rizki, R. D. A., Brahmana, H., Iskandar, J., An, Y., & Susanto, H. H. S. (2022). Tinjauan Yuridis Perlindungan Hak Privasi Dalam Transaksi Elektronik Pada Era Disrupsi Teknologi. Journal of Education, Humaniora and Social Sciences. https://doi.org/10.34007/jehss.v4i4.1044

Prastyanti, R. A., Rahayu, I., Yafi, E., Wardiono, K., & Budiono, A. (2022). Law And Personal Data: Offering Strategies For Consumer Protection In New Normal Situation In Indonesia. Jurnal Jurisprudence. https://doi.org/10.23917/jurisprudence.v11i1.14756

Qureshi, M. I., Nasien, D., & Adiya, M. H. (2023). Mobile-Based Applications: The Legal Challenges on Data Privacy. International Journal of Online Engineering (Ijoe). https://doi.org/10.3991/ijoe.v19i09.40915

Republik Indonesia. (1999). Undang-Undang Nomor 8 Tahun 1999 tentang Perlindungan Konsumen. Lembaran Negara Republik Indonesia Tahun 1999 Nomor 22. Sekretariat Negara, Jakarta.

Republik Indonesia. (2008). Undang-Undang Nomor 11 Tahun 2008 tentang Informasi dan Transaksi Elektronik (ITE). Lembaran Negara Republik Indonesia Tahun 2008 Nomor 58. Sekretariat Negara, Jakarta.

Romdoni, I. A. (2024). Legal Analysis of Consumer Protection in E-Commerce Transactions. Jurnal Jendela Hukum Indonesia, 2(1), 11- 21.

Rusianto, R., R. Hardyansah, & D. Darmawan. (2023). Application of the Elements of Money Laundering Crime in Indonesian Jurisprudence, Bulletin of Science, Technology and Society, 2(3), 44-50.

Sahid, R. R., R. Hardyansah, D. Darmawan, D.S. Negara, & R.K. Khayru. (2023). Legal Perspective of Investment Risk Mitigation on Peer-to-peer Lending Platforms, Journal of Social Science Studies, 3(1), 177 – 184.

Saragih, A. E., Bagaskara, M. F., & Mulyadi. (2023). Perlindungan Hukum Terhadap Konsumen dalam Transaksi E-Commerce. Jurnal Kajian Hukum dan Pendidikan Kewarganegaraan, 2(2), 3-8.

Sidobalok, J. (2014). Hukum Perlindungan Konsumen di Indonesia. Citra Aditya, Bandung.

Silfiah, R. I., Suwardi, Humiati, Sulatri, K., & Ismail, Y. (2024). Legal Protection of Consumers with Online Transactions. Journal of Law, Politic and Humanities, 4(6), 2584-2595.

Sinambela, E. A. & D. Darmawan. (2022). Advantages and Disadvantages of Using Electronic Money as a Substitute for Cash, Journal of Social Science Studies, 2(2), 56-61.

Subekti. (2000). Hukum Perjanjian (7th ed.). PT. Intermasa, Bogor.

Sulaiman, M., N. H. Pakpahan, & A. R. Putra. (2023). Analysis of the Validity and Effectiveness of Electronic Contracts in Legal Protection of Digital Transactions in Indonesia, Journal of Social Science Studies, 3(1), 41–46.

Susanto, J. A., R. Hardyansah, D. Darmawan, & R. K. Khayru. (2024). Juridical analysis of consumer protection in counterfeit drug transactions in the digital era. Legalis et Socialis Studiis, 2(2), 1–9.

Suwito., F. Diagantara, Mujito, R. Hardyansah & P. Saktiawan. (2022). Navigating Social Mobility Through Reintegration of Crime-Involved Individuals, Journal of Social Science Studies, 2(1), 157 – 160.

Tjin Tai, E. (2018). Data Ownership and Consumer Protection. Social Science Research Network. https://doi.org/10.2139/SSRN.3172725

Wahyudi, E., D. Darmawan, & R. Hardyansah. (2023). Legal Protection for Online Ojek Drivers Who are Victims of Fictitious Order, Bulletin of Science, Technology and Society, 2(2), 37-43.

Wahyudi, W., Kabalmay, R. N. K., & Amri, M. W. (2021). Big Data and New Things in Social Life. Studi Ilmu Sosial Indonesia, 1(1), 1-12.

Wulandari, W. & D. Darmawan. (2022). Salesperson Interaction Quality and Consumer Decisions in Online Transactions, Journal of Social Science Studies, 2(2), 91 – 98.

Wulandari, Y. S. (2018). Perlindungan Hukum bagi Konsumen terhadap Transaksi Jual Beli E-Commerce. Jurnal Ilmu Hukum, 2(2), 199-210.

Yuliana, S. (2022). Perlindungan Hukum Terhadap Usaha Kecil Menengah (UKM) Berdasarkan UU No. 8 Tahun 1999 Tentang Hukum Perlindungan Konsumen. Justici, 14(1), 1–14.

Yuniarti, S. (2019). Perlindungan Hukum Data Pribadi di Indonesia. Business Economic, Communication, and Social Sciences (BECOSS) Journal, 1(1), 147–154.