The Role of Alternative Business Dispute Resolution from a Legal and Consumer Protection Perspective

Abstract

Settlement of business disputes between consumers and business actors is becoming an increasingly important issue amidst the increasing complexity of transactions in the digital era and economic globalization. This study aims to examine the role of the Consumer Dispute Resolution Agency (BPSK) in supporting alternative business dispute resolution as a measure to protect consumer rights in Indonesia and to analyze the effectiveness of these alternative mechanisms in providing protection for consumers. This study uses a normative legal method. The research findings show that BPSK plays a strategic role in providing a more efficient dispute resolution mechanism for Indonesian consumers through a friendly, fast, and affordable mediation, conciliation, and arbitration approach. With this approach, BPSK contributes to the protection of consumer rights and encourages business actors to run their businesses fairly and responsibly. In addition, alternative business dispute resolution has proven effective in providing flexible and efficient solutions, meeting consumer justice demands in a more cost-effective and time-efficient manner. Despite facing various challenges, the ADR mechanism offers significant benefits for both consumers and business actors in resolving business disputes.

Keywords: Business Disputes, Arbitration, Mediation, and Conciliation