Legal Responsibility of Digital Commerce Platforms for Seller Content that Violates Public Ethics
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Shofiy Zulfah, Bunga Jasmine Puji Hapsari, Faza Rusda

Legal Responsibility of Digital Commerce Platforms for Seller Content that Violates Public Ethics

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Introduction

Legal responsibility of digital commerce platforms for seller content that violates public ethics. Analyze legal responsibility of digital commerce platforms for unethical seller content in Indonesia, EU & US. Compare liability systems & propose enhanced accountability for sustainable digital growth.

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Abstract

The rapid growth of the digital economy in Indonesia has drastically changed the nature of online commerce and prompted urgent considerations regarding the legal responsibilities of digital commerce platforms, especially user-generated content that violates public ethics. This article aims to analyze and compare the preventive, corrective, and compensatory obligations of digital platforms in Indonesia, the European Union, and the United States. This study uses normative legal research with comparative studies, reviewing the Electronic Information and Transaction Law (ITE) in Indonesia, the Digital Services Act of the European Union (EU), and Section 230 of the Communications Decency Act of the United States. The results show that Indonesia implements a knowledge-based and conditional liability system, which requires platforms to remove illegal content after receiving notification, but does not introduce an absolute liability system. The EU adopts a risk-based and proportional approach that reflects differences in the scale and impact of platforms, and focuses on systemic risk management and transparency. On the other hand, the US model tends to prioritize platform autonomy by providing broad immunity. The findings show that although Indonesian regulations are in line with innovation and consumer protection, they are still not strict enough in terms of systemic risks in algorithms and cultural commodification. This study emphasizes that adopting explicit risk assessment standards, enhanced transparency requirements, and stronger user compensation systems presents an opportunity for Indonesia, drawing on the experiences of the EU and the US, to achieve greater platform accountability and sustainable digital growth.


Review

The paper addresses a highly pertinent and critical issue concerning the legal responsibility of digital commerce platforms for user-generated content that transgresses public ethics, a challenge amplified by the rapid expansion of the digital economy, particularly in Indonesia. The study's aim to comparatively analyze the preventive, corrective, and compensatory obligations across Indonesia, the European Union, and the United States, utilizing a normative legal research methodology with a focus on key legislative frameworks (Indonesia's ITE Law, EU's DSA, and US's Section 230 CDA), establishes a robust and timely framework for its inquiry. This comparative approach is well-suited to illuminate the nuances of platform liability in distinct regulatory environments. The research effectively delineates the divergent approaches to platform liability among the three jurisdictions. It highlights Indonesia's implementation of a knowledge-based and conditional liability system, necessitating content removal post-notification without imposing absolute liability. In contrast, the European Union's Digital Services Act (DSA) is characterized by a risk-based and proportional approach, emphasizing systemic risk management and transparency, reflective of platform scale and impact. The United States, conversely, maintains a model that grants broad immunity, prioritizing platform autonomy under Section 230 of the Communications Decency Act. A critical contribution of the study lies in its assessment of Indonesia's current regulations, which, despite aligning with innovation and consumer protection, are identified as insufficiently stringent in addressing systemic risks arising from algorithms and potential cultural commodification. This study makes a significant contribution to the discourse on platform governance, offering valuable insights for policymakers and legal scholars. Its comparative analysis not only elucidates the strengths and weaknesses of different regulatory models but also provides actionable recommendations tailored for Indonesia. The emphasis on adopting explicit risk assessment standards, enhanced transparency requirements, and stronger user compensation systems, drawing from the experiences of the EU and US, presents a clear pathway for Indonesia to bolster platform accountability and foster more sustainable digital growth. The paper successfully underscores the complex balance between fostering innovation, protecting user rights, and mitigating societal harms in the digital realm, making a compelling case for regulatory evolution to meet contemporary challenges.


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