Legal Responsibility of Concert Ticket Application Providers Toward Consumers

Before discussing whether consumers may claim compensation for issues arising from concert ticket purchases, it is essential to first understand consumers’ rights and the obligations of business actors, particularly providers of concert ticketing applications. These matters are governed by Law Number 8 of 1999 on Consumer Protection, which serves as the primary legal framework for consumer protection in Indonesia.

Pursuant to Article 4 of Law Number 8 of 1999, consumers are entitled to comfort, security, and safety in consuming goods and/or services, the right to choose goods and/or services and to obtain them in accordance with the agreed value, conditions, and guarantees, as well as the right to accurate, clear, and honest information regarding the condition and guarantees of goods and/or services. Consumers are also entitled to have their opinions and complaints heard, to receive advocacy, protection, and proper consumer dispute resolution, to obtain consumer education, to be treated or served fairly, honestly, and without discrimination, and to receive compensation, indemnification, and/or replacement if the goods and/or services received are not in accordance with the agreement or are otherwise improper. In addition, consumers are entitled to other rights as stipulated in prevailing laws and regulations.

On the other hand, business actors are subject to legal obligations in the conduct of their business activities. They are required to act in good faith, provide accurate, clear, and honest information regarding the condition and guarantees of goods and/or services, and treat consumers fairly, honestly, and without discrimination. Business actors are also obligated to ensure the quality of goods and/or services produced or traded in accordance with applicable standards, provide consumers with the opportunity to test or try certain goods and/or services, and offer guarantees or warranties. Where losses arise from the use of goods and/or services, business actors are required to provide compensation, indemnification, and/or replacement, including in cases where the goods and/or services received by consumers do not conform to the agreement.

The obligation of business actors to provide compensation is further affirmed in Article 19 paragraph (1) of Law Number 8 of 1999, which stipulates that business actors are responsible for compensating consumers for losses resulting from the consumption of goods and/or services that are produced or traded. Such compensation may take the form of a refund, replacement of goods and/or services of equal or equivalent value, or other forms of compensation in accordance with applicable laws and regulations. Article 19 paragraph (3) of the same law further provides that compensation must be granted within a period of no more than seven days from the date of the transaction.

If a business actor refuses, fails to respond, or does not fulfill a consumer’s claim for compensation, the consumer is entitled to pursue legal remedies by filing a claim with the Consumer Dispute Settlement Body (Badan Penyelesaian Sengketa Konsumen – BPSK) or by bringing an action before the district court at the consumer’s domicile. This provision is consistent with Article 45 paragraph (1) of Law Number 8 of 1999, which grants every aggrieved consumer the right to file a lawsuit against a business actor through a dispute resolution body or through the general courts.
In the context of concert ticket purchases made through digital applications, the transaction constitutes an electronic transaction as regulated under Law Number 19 of 2016 on Electronic Information and Transactions. Where the application provider is domiciled outside Indonesia, such a transaction may be classified as an international electronic transaction. In principle, an electronic contract is binding upon the parties who enter into it and serves as the legal basis for the relationship between the consumer and the application provider.

In international electronic transactions, the parties have the authority to determine the applicable law and the forum for dispute resolution in the event of a dispute. Such choice of law and forum, as stipulated in the electronic contract, is binding upon the parties. However, where the electronic contract does not specify the applicable law or the forum for dispute resolution, the determination of the governing law and the competent dispute resolution body shall be based on the principles of private international law.

Accordingly, consumers who suffer losses due to issues with concert tickets, such as tickets that cannot be used or barcodes that are declared invalid upon redemption, may in principle claim compensation from the business actor. Nevertheless, where the application provider is domiciled outside Indonesia and does not maintain a representative office or branch within Indonesia, the resolution of disputes must be conducted in accordance with the applicable law and forum agreed upon in the electronic contract or, in the absence of such agreement, pursuant to the principles of private international law.

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