Ethics of Consumer Protection

1. BUSINESS ETHICS & GOOD GOVERNANCE
(BE &GG)
Ethics of Consumer Protection
Quiz And Forum – 3 E-learning
Prof. Dr. Ir. Hapzi Ali, MM, CMA
By
Abdul Latif : 55117120125
Master Of Management
Mercu Buana University
Jakarta – 2018

2. 1. Ethics of Consumer Protection
Background
This consumer protection is a guarantee that should be obtained by consumers for
every food product purchased from a producer or business actor. Currently there are only
producers who do not attach importance to the health and safety of consumers because we
often encounter violations committed by the producer to the consumer.
1.1 Consumers
Consumers are every person who uses goods and / or services available in the
community, both for the benefit of themselves, their families, other people, and other
living things, and not for trading. While consumer protection is a legal tool created to
protect and fulfill consumer rights. In his book, Introduction to Business Law, Munir
Fuady argued that consumers are end users of a product, namely every user of goods and
/ or services available in the community, both for self, family, other people, and living
things. other, and not for trading.
1.2 Law
According to Mochtar Kusumaat, the law on consumer protection is the overall
principles and rules of law that regulate and protect consumers in their relationships and
problems with the providers of consumer goods and / or services. Whereas according to
Law No. 8 of 1999 concerning Consumer Protection which is meant by consumer
protection is all efforts that guarantee legal certainty to provide protection to consumers.
And what is meant by consumers is every person who uses goods and / or services
available in the community, both for the benefit of themselves, family, other people, and
other living things, and not for trading.
1.3 Hidden Taxes in society
The government seeks to optimize tax revenues in order to increase state revenues,
but in an effort to optimize tax revenues can not be separated from several obstacles,
moreover the taxation system in Indonesia adheres to a self assessment system which
means that the tax collection system gives taxpayers the responsibility to calculate, pay
, and report on their own tax amount in accordance with tax laws and regulations. This
has caused many tax avoidance practices carried out by taxpayers. Tax avoidance is
defined as one of the actions that a taxpayer takes to reduce his tax burden legally. Tax
avoidance can be said to be a complicated and unique problem because on the one hand
it is considered not to violate.

3. 1.4 Stakeholder Alliance
The term 'Stakeholders' or called stakeholders is a group or individual whose
support is needed for the welfare and survival of the organization. Stakeholders are a
person, organization or group with an interest in a particular natural resource (Brown
et al 2001). Stakeholders who have something to gain or lose through the outcomes of
a planning process, program or project (Dialogue by Design 2008). Stakeholders
include all parties involved in the management of resources. According to Witold
Henisz, professor at the Wharton Business School, including all people from local and
national politicians and community leaders or leaders, authorities, paramilitary groups,
NGOs and international agencies. In the corporate context, Clarkson (in a 1994 article)
provides a more specific definition of stakeholders as a group or individual who bears
a type of risk either because they have invested (material or human) in the company
('voluntary stakeholders'), or because they face risks due to the company's activities
('Non-voluntary stakeholders'). Based on this view, stakeholders are parties who will
be directly affected by the company's decisions and strategies.
1.5 Consumer Protection
According to the contractual view of business business assignments to consumers,
the relationship between the company and the consumer is basically a contractual
relationship, and the company's moral obligations to consumers are as given in
contractual relations. This theory illustrates that companies have four main moral
obligations: basic obligations to comply with the contents of the sales agreement, and
the obligation to understand the nature of the product, avoid misrepresentation, and
avoid the use of coercion or influence. By acting in accordance with these obligations,
the company means respecting the rights of consumers to be treated as individuals who
are free and equal or in other words, in accordance with their right to receive the
treatment they agree to be imposed on them.
Contract theory regarding business obligations to consumers, claims that business has
four main moral obligations (Velasquez, 1998: 327). The obligations include: (1)
obligation to fulfill (the duty to comply) (2) obligation to disclose (the duty of
disclosure) (3) obligation not to misinterpret duty not misrepresent) and (4) obligation
not to force (the duty not to coercive)
1.5.1 There are two types of protection provided to consumers, namely:
a. Priventive protection
Protection provided to consumers when the consumer will buy or use or utilize
certain goods and / or services, starts the process of selecting a series or
number of goods and or services and then decides to buy or use or utilize
goods and services with certain specifications and that particular brand.
b. Curative Protection
Protection provided to consumers as a result of the use or use of certain goods
or services by consumers. In this case it should be noted that consumers are

4. not necessarily and unnecessary, and should not be equated with buyers of
goods and or services, even though consumers are generally those who buy
goods or services. In this case someone is said to be a consumer, enough if the
person is a user or a beneficiary or a connoisseur of an item or service, no
matter he gets it through a purchase or gift.
1.5.2 The objectives of consumer protection include:
• Increase consumer awareness, ability and independence to protect themselves.
• Raising the dignity of consumers by avoiding them from negative access to the
use of goods and services.
• Increase consumer empowerment in choosing, determining and demanding
heir rights as consumers.
• Creating a consumer protection system that contains elements of legal certainty
and information disclosure and access to information.
• Growing awareness of businesses regarding the importance of consumer
protection so that an honest and responsible attitude to business grows.
• Improve the quality of goods and services that guarantee the continuity of the
production of goods and services, health, comfort, safety and consumer
safety.
Implementation of the Consumer Protection Law Number 8 of 1999 concerning the
Consumer Protection of the Republic of Indonesia in the Lion Air case in Surabaya.
The Consumer Protection Law Number 8 of 1999 concerning Consumer Protection of the
Republic of Indonesia explains that consumer rights include the right to comfort, security and
safety in consuming goods and or services; the right to choose goods and or services and get the
goods and or services in accordance with the exchange rate and the conditions and guarantees
promised; the right to be treated or served correctly and honestly and not discriminatory; the right
to get compensation, compensation and or compensation, if the goods and or services received are
not in accordance with the agreement or not as they should be; etc.
In Indonesia, the legal basis that makes a consumer able to apply for protection is:
 1945 Constitution Article 5 paragraph (1), article 21 paragraph (1), Article 21 paragraph (1),
Article 27, and Article 33.
 Law No. 8 of 1999 concerning Consumer Protection (State Gazette of the Republic of
Indonesia of 1999 No. 42 Supplement to the State Gazette of the Republic of Indonesia No.
3821
 Law No. 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair Business
Competition.
 Law No. 30 of 1999 concerning Arbritase and Alternative Dispute Settlement
 Government Regulation No. 58 of 2001 concerning Guidance for Supervision and
Implementation of Consumer Protection

5.  Circular of the Director General of Domestic Trade No. 235 / DJPDN / VII / 2001 concerning
Handling of consumer complaints addressed to all Indag Prop / District / City agencies
 Circular of the Director General of Domestic Trade No. 795 / DJPDN / SE / 12/2005
concerning Guidelines for Consumer Complaint Services
LION AIR CASE
In Surabaya, an advocate sued Lion as the owner of Wings Air Airlines because the flight
was delayed for 3.5 hours. The airline was sued by an advocate named DAVID ML Tobing.
DAVID, a lawyer who recorded several consumer cases, decided to file a lawsuit after the Wings
Air plane (owned by Lion) that he was supposed to ride was late for at least ninety minutes.
This case occurred on August 16, he planned to fly from Jakarta to Surabaya, at 08:35 WIB.
Wings Air flight tickets have been purchased. Until the time limit stated on the ticket, it turns out.
In short, the flight departure is late from schedule.
DAVID accused Wings Air of committing an unlawful act with delays in the departure and
inadequacy of the airline officer's information services at the airport. Furthermore DAVID filed a
lawsuit against the case to the court to obtain losses and asked the court to cancel the standard
clause which the plane never left. DAVID tried to find information, but he felt he lacked service
contains the transfer of airline responsibility for delays, which is prohibited by Law Number 8 of
1999 concerning Consumer Protection
CONCLUSIONS AND RELATIONSHIP OF BUSINESS ETHICH
Business requires consumers, and consumers need business to meet their needs. The relationship
between business and consumers must be mutually beneficial, long-term, and based on mutual
trust. To fulfill and guarantee consumer rights, an open market is needed which allows all forms
of information and the interests of producers and consumers to be obtained freely and completely.
Information disclosure makes consumers well-informed so that they can choose the best quality
products according to their financial capabilities

6. Daftar Pustaka
Hapzi Ali, 2016. Modul BE & GG : Ethics of consumer protection, Univeristas Mercu Buana
Buku Etika Bisnis Modern pendekatan Pemangku Kepentingan oleh Tri Hendro Sigit.P.,
M.B.A.,CF
http://id.wikipedia.org/wiki/Perlindungan_konsumen
http://lms.unhas.ac.id/claroline/phpbb/viewtopic.php?topic=11&cidReset=true&cidReq=136E41
3_005
https://commpap.blogspot.co.id/2016/10/teori-pemangku-kepentingan.html