The Legality of Online Auctions on Instagram

Oct 13, 2025 by thesweetdesigns.com 100 views

Urgency of Online Auction Legality on Instagram: Explore the Practice and Legal Challenges

In today's digital age, social media platforms have become an integral part of our lives, and online auctions have become a popular way to buy and sell goods. Instagram, in particular, has emerged as a significant player in the online auction market, with many users taking advantage of its vast user base to buy and sell goods. However, the rise of online auctions on Instagram has also raised concerns about the legality and legal certainty of these transactions.

The Legality of Online Auctions on Instagram

The legality of online auctions on Instagram is governed by various regulations, including the Minister of Finance Regulation Number 213/PMK.06/2020 concerning Instructions for Implementing Auctions. This regulation requires online auction platforms to register as a limited liability company and obtain operational permits from the Ministry of Finance. However, many online auction platforms on Instagram, including the popular account @usedbapeofficial, have failed to meet these requirements.

A Study on Online Auctions on Instagram

This study aimed to explore the practice and legal challenges of online auctions on Instagram, with a focus on the account @usedbapeofficial. The study used a normative juridical approach with an analytical descriptive method to analyze the online auction cases on the @usedbapeofficial account. The study collected primary and secondary data from literature and field studies.

The Results of the Study

The study found that the @usedbapeofficial account did not meet the requirements as an official auction hall. The account is not registered as a limited liability company and does not have permission from the Ministry of Finance. This lack of registration and permission raises concerns about the legality and legal certainty of the online auctions conducted on the account.

Limited Legal Certainty

The study also revealed that legal certainty for the owner of the goods and the auction winner was still not fully met. Although @usedbapeofficial transfers the money from the payment of the goods to one account in the name of Kenneth Lee, the certainty when the owner of the goods will receive payments for the goods auctioned is still unclear. This lack of clarity creates uncertainty and risk for the owner of the goods.

Legal Protection that is Not Optimal

The study found that legal protection for the auction winner is also not optimal. Although the information stated in the auction is in accordance with the format filled by the owner of the goods, the legal protection given to the auction winner is only preventive and repressive. This means that the auction winner is not fully protected in case of disputes or issues with the owner of the goods.

Recommendations to Increase Legality and Legal Protection

Based on the findings of the study, several recommendations are submitted to increase the legality and legal protection of online auctions on Instagram:

*** For @usedbapeofficial: ** Registering its business as a limited liability company and taking care of operational permits from the Ministry of Finance to be a legal auction executor. *** For the Government: ** Updating regulations that regulate auction activities through social media, especially Instagram, to be more comprehensive and accommodate the development of digital technology.

Conclusion

Increasing the legality and legal certainty in online auctions on Instagram is very important to protect the rights and interests of the parties involved. Through strict law enforcement and comprehensive regulations, online auctions on Instagram can be a safe, transparent, and just platform for all parties.

The Importance of Legality and Legal Certainty in Online Auctions

Legality and legal certainty are essential in online auctions to ensure that the rights and interests of all parties are protected. Without these, online auctions can be vulnerable to fraud, disputes, and other issues that can harm the parties involved. Therefore, it is crucial for online auction platforms, including Instagram, to ensure that their operations are in compliance with relevant regulations and laws.

The Role of the Government in Regulating Online Auctions

The government plays a crucial role in regulating online auctions to ensure that they are conducted in a fair, transparent, and legal manner. The government should update regulations to accommodate the development of digital technology and ensure that online auction platforms are registered and permitted to operate. This will help to increase the legality and legal certainty of online auctions and protect the rights and interests of all parties involved.

The Future of Online Auctions on Instagram

The future of online auctions on Instagram looks promising, but it requires careful regulation and compliance with relevant laws and regulations. With the right regulations and compliance, online auctions on Instagram can be a safe, transparent, and just platform for all parties. However, without these, online auctions on Instagram can be vulnerable to fraud, disputes, and other issues that can harm the parties involved.

Conclusion

In conclusion, the legality and legal certainty of online auctions on Instagram are essential to protect the rights and interests of all parties involved. This study highlights the importance of complying with relevant regulations and laws to ensure that online auctions are conducted in a fair, transparent, and legal manner. The government should update regulations to accommodate the development of digital technology and ensure that online auction platforms are registered and permitted to operate. This will help to increase the legality and legal certainty of online auctions and protect the rights and interests of all parties involved.
Frequently Asked Questions (FAQs) about Online Auctions on Instagram

As online auctions on Instagram continue to grow in popularity, many users have questions about the legality and legal certainty of these transactions. In this article, we will answer some of the most frequently asked questions about online auctions on Instagram.

Q: What are the regulations governing online auctions on Instagram?

A: The regulations governing online auctions on Instagram are governed by the Minister of Finance Regulation Number 213/PMK.06/2020 concerning Instructions for Implementing Auctions. This regulation requires online auction platforms to register as a limited liability company and obtain operational permits from the Ministry of Finance.

Q: Why is it important to register as a limited liability company and obtain operational permits?

A: Registering as a limited liability company and obtaining operational permits is important to ensure that online auction platforms are legitimate and compliant with relevant laws and regulations. This helps to protect the rights and interests of all parties involved in the online auction process.

Q: What happens if an online auction platform fails to register as a limited liability company and obtain operational permits?

A: If an online auction platform fails to register as a limited liability company and obtain operational permits, it may be considered illegal and may face penalties and fines. This can also lead to disputes and issues with the parties involved in the online auction process.

Q: How can I ensure that I am buying from a legitimate online auction platform on Instagram?

A: To ensure that you are buying from a legitimate online auction platform on Instagram, look for the following:

A registered business name and address
A valid operational permit from the Ministry of Finance
Clear and transparent information about the auction process and terms
A secure payment system

Q: What happens if I encounter a dispute or issue with an online auction platform on Instagram?

A: If you encounter a dispute or issue with an online auction platform on Instagram, you should contact the platform directly to resolve the issue. If the issue cannot be resolved, you may need to seek the assistance of a lawyer or a consumer protection agency.

Q: Can I participate in online auctions on Instagram if I am not a resident of Indonesia?

A: Yes, you can participate in online auctions on Instagram if you are not a resident of Indonesia. However, you should ensure that you comply with all relevant laws and regulations in your country of residence.

Q: How can I report a suspicious online auction platform on Instagram?

A: If you suspect that an online auction platform on Instagram is engaging in suspicious or illegal activities, you should report it to the relevant authorities, such as the Ministry of Finance or the Indonesian National Police.

Q: What are the consequences of participating in an online auction on Instagram that is not compliant with regulations?

A: Participating in an online auction on Instagram that is not compliant with regulations can have serious consequences, including:

Financial losses
Disputes and issues with the parties involved
Penalties and fines
Damage to your reputation and credit score

Conclusion

In conclusion, online auctions on Instagram can be a safe and enjoyable way to buy and sell goods, but it is essential to comply with relevant laws and regulations. By understanding the regulations and taking the necessary precautions, you can protect your rights and interests and ensure a smooth and successful online auction experience.