Online trading is being common in Indonesia since the explosion of e-commerce business. The easiness to run a business through social media, website and any other form of virtual platforms supported by the wide and accessible network are the main reasons why many people choose this way to sell goods. Not only the seller, the consumers also enjoy this kind of market because it saves their time. They do not need to go around mall or shops finds goods they want.
However, sometimes online transaction does not run well because it is prevalent to see customers do not get goods as specified on the portal or the get customer just get the black-market product. Having known that problems, Indonesian Government through Directorate General of Consumer Protection and Trade Order Ministry of Trade urges online sellers who also the producers/manufacturer of goods to fulfill the following obligations:
- Ensure their products meet the Indonesian National Standard (Standar Nasional Indonesia- “SNI”)
- Affix Label on their products; and
- Provide Manual Book and Guarantee Card to the customers. This kind of obligations are imposed to ensure the customers get the proper information and secure customers rights.
What are SNI, Label, Manual Book and Guarantee Card?
Pursuant to Ministry of Trade Regulation No.72 of 2015 on Third Amendment of Ministry of Trade Regulation No.14 of 2007 on Standardization on Trade Services and Must Have SNI Products and Services, (“MoT No.72/2015”), the SNI is standard determined by National Standard Agency for goods, services, system or personnel which applied nationally. SNI is not applied to every goods or services, it is just apply for several goods or services, for instance; toys, wheels, cement, mineral water, helmet, and so on. The SNI standard for goods and services are regulated on specific regulations.
Label is every information about goods in form of image, writing, combination of image and writing or other any other forms containing information about that goods, producer, or any other information that should be informed based on regulations. . Every producer and importer should ensure that their products are labelled as commanded by Minister of Trade Regulation No. 67of 2013 that has been amended by Ministry of Trade Regulation No. 10 of 2014 regarding the Obligation to Affix Label on Goods (“MoT No.67/2013”). MoT also govern all the Label affixed to the goods should be in Indonesian Language.
Further, the Manual Book and Guarantee Card mostly apply for electronic products. Manual Book contains guide to use electronic products, while the Guarantee Card contains warranty that the electronic products have spare parts and after-sales services. Based on Minister of Trade Regulation No.19 of 2009 on Guidelines to Register Manual Book and Guarantee Card for Electronic Products (“MoT No.19/ 2009”), both Manual Book and Guarantee Card must be in Indonesian Language and must be registered to the Ministry of Trade.
Fail to meet the SNI standard will be imposed several sanctions, ranging from administrative sanction to criminal penalties.
How if the online sellers is not the producers/manufacturers of the goods?
The online sellers which is not the producers/manufacturers the goods are not obliged to perform that such of obligations. However, based on MoT No.72/2015, seller must know the identity, name and address of importer/distributor/sub distributor of the products. The seller also must ensure that their selling products already fulfill the obligations as mentioned-above.
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