VALIDITY OF STANDARD CLAUSES AND BUSINESS LIABILITY UNDER THE CONSUMER PROTECTION LAW: A SYSTEMATIC LITERATURE REVIEW OF CONVENTIONAL AND DIGITAL TRANSACTIONS

Abstract

Standard clauses are widely used in consumer transactions because they facilitate efficient contract formation. However, unilaterally drafted contractual terms may raise legal concerns when they transfer business liability, restrict consumer rights, or grant disproportionate powers to business actors. The development of electronic transactions has expanded these issues through digital contracts, click-wrap agreements, platform terms of service, choice-of-forum provisions, and liability limitations in technology-based services. This study examines the validity limits of standard and exemption clauses and explains the legal consequences for business liability under Law Number 8 of 1999 on Consumer Protection. A Systematic Literature Review with juridical-thematic synthesis was conducted using 32 studies grouped into two contexts: conventional transactions and specific services, and digital transactions, e-commerce, fintech, and electronic platforms. The findings demonstrate that standard clauses are not prohibited as a contractual form. Questions of validity arise when their substance or presentation falls within the prohibitions stipulated in Article 18 of the Consumer Protection Law, conflicts with good faith, disrupts contractual balance, or eliminates legally protected consumer rights. Clauses falling within these prohibited categories have no binding force under Article 18 paragraph (3). Nevertheless, the invalidity of a particular clause does not necessarily invalidate the entire agreement. Business liability for consumer losses must also be assessed separately under Article 19, taking into account causation, the nature of the loss, and relevant sectoral regulations. In digital transactions, consumer protection remains applicable despite changes in the form of consent and contractual media. The findings indicate that effective consumer protection requires substantive scrutiny of contractual terms, transparent presentation of clauses, and supervision of contractual practices that disproportionately shift risks to consumers.

Keywords: standard clauses; exemption clauses; consumer protection; business liability; digital contracts; Consumer Protection Law.