The Effectiveness of Digital Consumer Protection Law in Promoting Trust and the Growth of Online Economic Transactions

Althea Serafim  Kriswandaru; Fatimah Azzahro Fachuda; Siti Sya'ada Alda Risma

doi:10.51903/5ayj5t34

Authors

Althea Serafim Kriswandaru Fakultas Hukum, Universitas Sains dan Teknologi Komputer Semarang, Jawa Tengah, Indonesia https://orcid.org/0009-0002-7955-2141
Fatimah Azzahro Fachuda Fakultas Hukum, Universitas Mulawarman, Samarinda, Kalimantan Timur
Siti Sya'ada Alda Risma Fakultas Hukum, Universitas Mulawarman, Samarinda, Kalimantan Timur

DOI:

https://doi.org/10.51903/5ayj5t34

Keywords:

Digital Consumer Protection, Consumer Trust, Online Transactions, Legal Effectiveness, Digital Economy

Abstract

The development of the digital economy in Indonesia presents both opportunities and challenges that materially affect the effectiveness of legal protection for digital consumers. This study aims to examine the impact of digital consumer protection legislation on consumer trust and its subsequent effect on the growth of online economic transactions. A quantitative approach was employed, surveying 400 active digital consumers in Indonesia using an online survey, and analyzed using multiple linear regression. The results indicate that the effectiveness of laws, especially with respect to regulatory clarity and personal data protection, poses a significant positive influence on consumer trust. Thus, it can be argued that trust drives consumers' intentions to continue digital transactions, leading to the continuous, sustainable growth of the digital economy. At the heart of this research is the legal-and-consumer-behavior approach integrated into an empirical model, with primary focus on the under-researched topic in Indonesia. Practically, this result provides a good platform for consumer-facing policymakers who want to design adaptive regulations and nudge businesses into adopting compliance as a strategy in their efforts to build digital consumer loyalty.

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