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Company Responsibility Towards Consumers in MLM Business

Company Responsibility Towards Consumers in MLM Business

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Published by ariefakbar

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Categories:Types, Business/Law
Published by: ariefakbar on Nov 22, 2010
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08/28/2011

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MM ± 5001BUSINESS ETHIC AND BUSINESS LAW FINAL TERM ASSIGNMENTCompany Responsibility towards ConsumersIn Multi-Level Marketing Business (PT. CNI)
 
La Ode Muhamad Arief Akbar29109367MASTER OF BUSINESS ADMINISTRATIONBANDUNG INSTITUTE OF TECHNOLOGY BANDUNG2010
 
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One of the juridical aspects that interesting to observe in Multi-Level Marketing business is a matter of protection for consumers, which is closely related to theresponsibilities of the company. Consumers become very important because theuser a wide range of products of goods or services produced by businesses is theconsumer. In this era, in which business actors have managed to produce andoffer a wide range of products or services, consumers will be the object for businessmen or company who only think about their own interests by ignoringthe rights ofconsumers. According to United Nation¶s resolution No. 39/248 of 1985 about Guidelines forConsumer Protection, has been clear that the consumer is a party which is very important to get the attention and protection in business transactions. While itcannot be denied there is still a lot of problem in terms of consumer protection inIndonesia. Businesses and governments are still quite often disregarding therights of consumers, even to the most fundamental rights though. Variousdishonestyof company businesses stilloftenfound, either inthe offer or advertiseor produce aparticular good.This problem becomes increased when in reality; consumers do not know theirrights, as well as the persistence of a culture of 'accept' thoughit has been treatedunfairly. If consumers want to fight for their rights, they are often faced with themechanisms that are considered complicated and inefficient both in terms of costand time. With the Law No 8 of 1999 on ConsumerProtection (Undang-undangPerlindungan Konsumen), problems are expected to be resolved. This law clearly 
 
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states as the umbrella act in the field of consumer protection. Therefore, theformulation of rights and duties of consumers and the rights and duties of company are clearly in Law No 8 of 1999 on Consumers¶ Protection. Although itmust be recognized that consumer protection in Indonesia is relatively moresecure legal certainty, but Law No 8 of 1999 on Consumers¶ Protection, whichhasmore than 5 years old are in fact not be optimal to guarantee and protectconsumer rights. Various cases involving consumer protection is still fairly common in many economic transactions are conducted consumer, including foodand beverage products.If these consumer protection issues associated with the Multi-Level Marketingsystem, there are other legalissues that also should be observed, namely the useof the mechanism of 'intermediary' in this business commonly referred to as'distributors'. In addition, due to problems of protection for consumers whopurchase and useproductsthat are available onthe markets.Conceptually, the distributor is an intermediary who performs activities on behalf and for its own interests. Therefore, all the burden of responsibility towards thirdparties (in these case consumers) should be shifted from manufacturers todistributors. This is different to the concept of agents who perform activities on behalf of and for the benefit of the manufacturer. If this is associated withprotection for consumers, then from the juridical aspect, there are some thingsthat should be takenseriously.Consumers as mentioned in Article 1 paragraph 2 Law No 8 of 1999 onConsumers¶ Protection, is any person users of goods and/or services that areavailable in the community, both for their self, family, others, as well as other

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