10.47313 Legal Protection for Consumers Regarding Personal Data in The Event of Illegal Investments to Create Legal Certainty

Legal Protection for Consumers Regarding Personal Data in The Event of Illegal Investments to Create Legal Certainty

Abstract

The rapid development of information technology and digital finance has opened
up significant opportunities for the growth of digital-based investments. However,
this phenomenon has also led to a surge in illegal investment practices in Indonesia,
particularly by non-bank financial institutions operating without a license from the
Financial Services Authority. These illegal investments often exploit consumers'
personal data without proper consent, thereby threatening consumer rights and
security. This study aims to analyze the legal protection framework for consumers
in the context of investment, and to evaluate the effectiveness of legal safeguards
for personal data as a response to the growing trend of illegal investments, with the
goal of establishing legal certainty in Indonesia. This research employs a normative
juridical method with statutory, conceptual, case-based, and comparative
approaches. The data used are secondary data obtained through library research,
including legislation, legal doctrines, and other legal literature. The findings show
that although the Consumer Protection Act and the Financial Services Authority
Act regulate consumer protection, in practice, there remain significant legal
loopholes exploited by perpetrators of illegal investments. Weak oversight,
suboptimal law enforcement, and low public legal literacy are identified as major
challenges. This study offers theoretical contributions to the development of
consumer protection law and practical insights for policymakers in formulating
stronger regulations and supervision mechanisms to ensure the security of personal
data and legal certainty for consumers.
Keywords: legal protection, consumers, personal data, illegal investment, Financial
Services Authority.