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With the passing on April 20, 1999 of Law No. 8 of 1999 on Consumer Protection (the "Law"), Indonesia (and Indonesian consumers) gained its (and their) first comprehensive law devoted to protecting the rights of and promoting the recourses available to, users of both goods and services. The Law, which became effective on April 20, 2000, is a significant step forward not only in trying to curb unfair business practices which cause loss to consumers but also in laying a framework for the raising of general awareness on consumer protection issues. By raising the consciousness of business agents and forcing them to adopt a more honest and responsible attitude, it is hoped that the quality of the goods or services will be raised, thereby ensuring the health, security and safety of all consumers.This treatment of consumer protection as a moral or ethical issue is reflected by the stated principles and aims of the Law and, more particularly, in the quite detailed statement of the consumer's and the business agent's respective rights and obligations. For example, the consumer has the right (among others) to obtain goods or services in accordance with their stated condition, to clear and honest information on the condition of the goods or service, to be served correctly, honestly and without discrimination and to obtain compensation or a refund if the goods or services do not conform to the agreement. The business agent on the other hand has the obligation (among others) to provide clear, correct and honest information, to guarantee the quality of goods and services based on prevailing standards, to provide an opportunity for consumers to test or try goods or services and to provide compensation or a refund for losses caused or failure to comply with guaranteed conditions or quality.This Memorandum is intended only to give a brief flavour of the Law and some of the issues raised and concerns held in respect thereof. Although not without its critics and sceptics, there are also those who believe the Law heralds the advent of consumer awareness and protection and also provide, by way of "class action" suits, a strong avenue of recourse against recalcitrant business agents.After looking at the particular restrictions and prohibitions which are imposed upon businesses, this Makarim & Taira S. Memorandum attempts to summarize the other important areas of the Law relating to the institutions being created to enforce the Law and promote consumer awareness, the specific sanctions imposed for violations of the Law and some other relevant provisions. Finally, we shall briefly comment on some of the criticisms of the Law, its potential shortcomings and its perceived deficiencies.
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