Consumer Protection Law in Electronic Transactions: Challenges and Solutions in the Digital Era in Indonesia

Abstract

The development of digital technology has driven significant changes in people's transaction patterns, from conventional systems to electronic transactions based on digital platforms such as e-commerce and social commerce. However, this progress has also given rise to various legal issues, especially in terms of consumer protection. This study aims to analyze the legal challenges faced by consumers in electronic transactions and to formulate relevant and applicable legal solutions in Indonesia. The research method used is a literature study (library research) with a qualitative approach, reviewing more than 30 scientific articles and relevant legal documents. Data were analyzed using the content analysis method against applicable legal provisions, case studies, and consumer protection theories. The results of the study show that the main challenges include weak consumer legal literacy, lack of clarity on the responsibilities of digital business actors, weak law enforcement against foreign actors, and limited regulations on algorithms and personal data collection. Some of the proposed solutions include revising the Consumer Protection Law to align with the PDP Law and the ITE Law, implementing the extraterritorial principle, strengthening online dispute resolution mechanisms, and increasing digital legal education for the community. This study contributes to formulating the direction of consumer protection law reform that is more inclusive and adaptive to the challenges of the digital era in Indonesia.