Draft Bill on Consumer Protection Regulates Pre-Production Supervision

Draft Bill on Consumer Protection (“ CP Law ”) proposes to include a product supervision mechanism starting from the pre-production stage. This proposal is a response to the increasing number of consumer losses caused by products that fail to meet standards, particularly those distributed through online platforms.

“Products must be inspected before they are produced,” said Khilmi, a member of Commission IV of the House of Representatives (DPR), to Hukumonline.

The current consumer protection framework is considered ineffective as it focuses solely on post-incident handling. With early-stage supervision in place, Khilmi added, consumer disputes can be reduced, and when disputes do occur, consumers will have a stronger bargaining position in asserting their rights.

Until now, consumers have struggled to win legal cases due to the absence of specific articles that regulate pre-market product standards. It is hoped that this draft will include provisions regarding product standards that must be met before entering the market, with supervision planned to fall under the authority of the National Consumer Protection Agency (“ BPKN ”).