pISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 8 August 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3787
Law Enforcement of Thrifting Practices Through Overseas
Online Thrift Shops with Instagram Applications
Nur Aziah Eka Putri¹, Ratna Kartika Wati²
Universitas Muhammadiyah Purwokerto, Indonesia
Email:
nuraziaheka[email protected]
*Correspondence
ABSTRACT
Keywords: thrifting law
enforcement, overseas
thrift shop online
mechanism, instagram.
Technology has changed people's habits, including the way
they buy things. Thrifting can be a way for fashion lovers or
fashionistas to learn about trends so that they can find very
varied and unexpected clothing models. In the
implementation of thrifting, there are currently many
platforms that can be used online. The most commonly used
online platforms are Instagram, TikTok, shopee, and many
other e-commerce. This article aims to discuss the
mechanism of online thrifting through the Instagram
application and to examine law enforcement against the
practice of Thrifting through the Instagram application. The
result of this research is that the impact of the online thrifting
mechanism using the Instagram application hurts security in
customs supervision and threatens local industries. The
practice of thrifting carried out online utilizes loopholes in
supervision and regulation so that many business actors can
still sell imported used goods illegally. To address this issue,
cooperative action is needed between the government, social
media platforms, and the public. The government needs to
strengthen regulations and improve oversight of online
buying and selling activities, including working with
platforms like Instagram to identify and crack down on
unlawful accounts.
Introduction
At this time, buying and selling used clothes is called "thrifting", and the shops that
sell them are called "thrift shops". Thrift shops are stores that sell used items at low prices,
so customers can buy these items at a lower price and avoid waste. Thrifting can be one
way for fashion lovers or fashionistas to study trends so that they can find very varied and
unexpected clothing models (Wijaya & Andriasari, 2022). In the implementation of
thrifting today, many platforms can be used, one of which is the online platform. The
most common online platforms are Instagram, TikTok, shopee, and many other e-
commerce that support this online thrifting practice (Niu, Jan, Tabe, & Songkaton, 2023).
Thrifting practices supported by online thrift shops abroad are very detrimental to the
domestic market, especially convection and garments or apparel which leads to a decrease
in the productivity of the domestic market (Petersson Eid, Sundell, & Svensson, 2024).
Nur Aziah Eka Putri, Ratna Kartika Wati
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3788
This practice also has an impact on the social sector, namely the number of unemployed,
because workers are not needed much. Economically, this has led to a decrease in foreign
exchange in exports, including fees and taxes, this is one of the reasons why Indonesia
has banned the import of used clothes (thrifting).
Law Number 7 of 2014 concerning Trade and Government Regulation Number 80
of 2019 concerning Trade Supported by Electronic Systems is a series of Indonesian
government regulations that regulate trade both conventionally and electronically. In
Article 47 of the Trade Law, the government stipulates trade prohibitions such as a ban
on imported goods to protect consumer cruciality and create a healthy business climate.
Another purpose of the regulation is to increase national economic growth. One of the
actions in the ban is to prohibit the trade in used goods. Legally, the act of trading in used
clothes is prohibited, while criminal sanctions against business actors can be imposed
criminal penalties as well as criminal sanctions contained in Article 62 Paragraph (1) of
Law No. 8 of 1999 concerning Consumer Protection, namely "Business actors who
violate the provisions as referred to in Article 8, Article 9, Article 10, Article 13 paragraph
(2), Article 15, Article 17 paragraph (1) letter a letter b, letter c, letter e, paragraph (2)
and article 18 are punishable by imprisonment for a maximum of 5 (five) years or a
maximum fine of Rp. 2,000,000,000.00 (two billion rupiah). Article 8 paragraph (2) of
Law Number 8 of 1999 concerning Consumer Protection (UUPK) states that "Business
actors are prohibited from trading damaged, defective or used, and polluted goods without
providing complete and correct information on the goods in question".
Based on the legal regulations of agreements, Article 1320 of the Civil Code tests
the validity of agreements, especially agreements for the sale and purchase of imported
used clothes carried out by thrift shop online stores with customers. In Article 1320 of the
Civil Code, a valid agreement meets four conditions, namely agreement, competence,
certain things, and halal clauses. Article 1337 of the Civil Code states "A cause is
prohibited, if the cause is prohibited by law or if the cause is contrary to decency or public
order." This is because it is in the form of a ban on the import of used goods from abroad
mentioned in the Regulation of the Minister of Trade Number 40 of 2020 concerning
Goods Prohibited from Export and Goods Prohibited from Import in attachment part IV
which includes types of used bags, used sacks, and used clothes. So the practice of
thrifting supported by online thrift shops abroad is contrary to Article 1337 of the Civil
Code.
One example of thrifting practices that are carried out individually can be found
around us, generally for people who are very careful about money but prioritise
appearance. Starting from children, and adults, to the elderly, they often practice online
thrifting. For example, we can buy used clothes supported by the Instagram application,
in the Instagram application there are a lot of thrift stores both from within the country
and abroad. With many online thrifting practices that buy used clothes supported by
foreign thrift shops directly at this time, this is the reason for conducting this research. So
that you can find out about the mechanism of foreign thrift shop practices supported by
Collaborative Governance in the Elderly Population Empowerment Program in Penggilingan
Village, East Jakarta Administrative City
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3789
Instagram social media and how law enforcement overshadows online thrifting practices
in Indonesia at this time.
Research Methods
Research Specifications
In this study, the author uses the statute approach and historical approach, this
legislative approach is carried out by examining all laws and regulations related to the
legal issues that are being discussed (researched). Meanwhile, the historical approach is
carried out by examining the background of what is studied and the development of
arrangements regarding the issues faced based on this research.
Data Collection Methods
The data collection method in this study is the bibliography study method.
Literature study is the study of written information about law that comes from various
sources and is widely published and is needed in normative legal research and is used as
a support in research and can be used as a basis or reference in reviewing literature related
to research conducted by authors.
Data Analysis Methods
The data analysis method in the research used by the author is qualitative, namely
by interpreting the legal materials that have been processed. The use of this interpretation
method aims to interpret the law, whether there is a void in legal norms or there is a vague
(unclear) law for legal materials, especially primary legal materials.
Results and Discussion
Mechanism of Thrifting Practice Through Online Thrift Shop Abroad Using the
Instagram Application
The mechanism of thrifting practices through foreign thrift shops using the
Instagram application has become a significant phenomenon in Indonesia. Thrift shop
sellers on Instagram usually get goods from foreign suppliers who send used clothes in
bulk. These clothes are then selected, cleaned, and photographed well to upload to the
seller's Instagram account. Instagram acts as a digital storefront that allows sellers to
showcase their products to a wide and diverse audience. The process of procuring goods
from abroad for thrift shops through Instagram often involves unofficial methods and is
not by applicable regulations.
Many imported second-hand goods enter Indonesia through channels that are not
detected by customs authorities. Sellers often use inappropriate declarations or even
smuggle them along with other goods to avoid taxes and customs duties that would
otherwise be paid. This method is not only against the law but also poses a risk to the
quality and safety of the goods sold. (Chairy & Gultom, 2023) stated that this practice
makes it difficult for customs authorities to conduct thorough inspections and detect
illegal goods. Additionally, sellers often take advantage of loopholes in oversight and
regulation, which allows them to continue operating despite official bans on the import
of used clothing. After successfully entering Indonesia, these items are then distributed
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3790
to various thrift shop sellers who are active on Instagram. These sellers then process,
clean, and market the clothes through their Instagram accounts.
The marketing process is carried out very effectively using Instagram features such
as Instagram Stories, IGTV, and live sales, which allow sellers to reach a wide audience
without the need to open a physical store. Sellers often attract consumers with attractive
product photos and descriptions that emphasize the brand, quality, and affordable price.
However, this practice carries various negative consequences. Not only is it detrimental
to local industries that have to compete with cheaper imported second-hand goods, but it
also has the potential to harm consumers. Goods that enter illegally do not go through the
process of checking quality and safety standards, so consumers are not guaranteed to
receive safe and suitable goods. This also has an impact on state revenue lost from unpaid
taxes and customs. This causes these goods not to go through an adequate quality and
safety inspection process, which can potentially harm consumers. After the goods arrive
in Indonesia, thrift shop sellers start the sorting process to choose clothes that are still
suitable for use and have a high selling value. This sorting process is very important
because it determines the quality and selling price of clothes that will be marketed to
consumers. Sellers usually sort clothes based on several key criteria, such as brand,
physical condition, and suitability with the latest fashion trends. Clothes with well-known
brands and in good condition usually have a higher selling value and sell faster in the
market.
Cleanliness is an important aspect that sellers pay attention to to ensure that clothes
look attractive and safe for consumers to use. According to (Balqies & Jupriani, 2022),
many sellers only use simple washing techniques that are not always adequate to remove
all contaminants or disease seeds that may be present on used clothes. This simple
washing technique involves the use of regular detergent and water, without going through
a more thorough sanitation process like professional garment factories do. The limitations
of this washing technique cause several problems, especially related to consumer health.
Used clothes that are not thoroughly cleaned can be a medium for spreading diseases or
skin infections. Consumers who are not aware of this potential risk may face health
problems after using these used clothes. (Balqies & Jupriani, 2022) emphasized that to
overcome this problem, sellers should use more sophisticated and effective cleaning
methods, such as dry cleaning or the use of special disinfectants to ensure that the clothes
are free of contaminants.
In product marketing, thrift shop sellers take advantage of the features provided
by Instagram such as Instagram Stories, IGTV, and shop features to promote their
products. They often use popular hashtags such as #thriftshop, #preloved, or
#secondhandfashion to attract the attention of potential buyers. Sellers also often hold
live sales, where they sell items directly through live broadcasts on Instagram, thus
creating an interactive and urgent sales atmosphere.
This practice presents several challenges and risks, especially related to the
authenticity and condition of the goods. Consumers are often unable to inspect the item
directly before purchasing, which makes them vulnerable to fraud or receiving items that
Collaborative Governance in the Elderly Population Empowerment Program in Penggilingan
Village, East Jakarta Administrative City
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3791
do not match the description. The increasingly popular practice of online thrifting has
posed serious challenges for the local fashion industry in Indonesia. According to
(Saputro, Santoso, Wardoyo, Sofiyana, & Ramadhani, 2024), the increase in the purchase
of imported second-hand clothes through platforms such as Instagram has led to a decline
in demand for local products. This condition affects various aspects of the domestic
fashion industry, from manufacturers to workers in the convection and garment sectors.
The decline in demand for local products means that many manufacturers are facing a
decline in revenue, which can ultimately affect their business viability.
Manufacturers who rely on domestic sales have to compete with imported second-
hand clothes that are usually sold at much lower prices. This makes local products less
competitive in the market. Many consumers prefer imported second-hand clothes because
of their more affordable prices and more diverse options, ruling out local products that
may be of better quality but cost more. The negative impact is also felt by workers in the
convection and garment sectors. When demand for local products decreases, many
companies may be forced to reduce the number of employees or even close their
businesses. This increased the unemployment rate, which became a serious social and
economic problem. Workers who have lost their jobs find it difficult to find new jobs,
especially in the same sector, due to the lack of demand and available jobs.
The economic impact of online thrifting practices in Indonesia is further
exacerbated by the fact that many transactions are carried out informally and are not
recorded. This causes the government to lose potential revenue from taxes and customs
duties that should be obtained from the trade of these imported goods. The inability to
effectively monitor and regulate these transactions creates loopholes in the country's
taxation and customs systems. As a result, a large amount of revenue that could be used
for development and public services is simply lost. These informal transactions are
usually carried out by individual sellers or small businesses that do not have an official
license or do not formally register their business. They utilize social media platforms such
as Instagram to market their products without having to go through licensing procedures
and pay applicable taxes. As a result, economic activities that should have been on the
government's radar became invisible and undocumented. This provides an advantage for
these sellers because they can offer lower prices without having to bear the burden of
taxes, but on the other hand, it is detrimental to the national economy. The lack of official
registration also means that the government does not have accurate data on the volume
and value of the trade-in imported used clothing. This data is essential for effective
economic planning and policymaking. Without adequate data, governments struggle to
identify trends and take appropriate actions to regulate the market and protect local
industries. This situation worsens economic conditions, especially for the domestic
convection and garment industries which have been affected by the decline in demand.
Existing regulations, such as those stipulated in Law Number 7 of 2014
concerning Trade and Government Regulation Number 80 of 2019 concerning Trade
Supported by Electronic Systems, have prohibited the trade of imported second-hand
goods to protect local industries and consumers. However, the implementation and
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3792
enforcement of this regulation still face many obstacles, especially in terms of monitoring
and supervision of online buying and selling activities that are carried out anonymously
and spread across various social media platforms. Consumer education and awareness
also play an important role in this practice. Many consumers are not aware of the risks
and impacts of buying imported used clothes, both in terms of health and economy. Intan
Nur Rahmalia emphasized the importance of educating consumers about their rights and
the risks associated with buying used goods online. In facing this challenge, cooperation
between the government, social media platforms, and the public is urgently needed. The
government needs to increase surveillance and work with platforms like Instagram to
identify and crack down on accounts that violate the law. At the same time, the public
needs to be encouraged to better support local products and understand existing
regulations.
Law Enforcement Against Online Thrifting Practices in Indonesia
Law enforcement against online thrifting practices in Indonesia requires a
comprehensive approach, considering the rapid development of e-commerce and social
media as buying and selling platforms. One of the main problems faced is the large
number of sellers who use Instagram and similar platforms to sell illegally imported used
clothes. This practice not only violates existing laws but also harms the domestic market
as well as consumers. Law Number 7 of 2014 on Trade, trade-in imported second-hand
goods, including clothing, prohibits to protection of local industries and consumers from
goods that may not meet health and safety standards. In addition, Government Regulation
Number 80 of 2019 concerning Trade Supported by Electronic Systems regulates online
trade and aims to create a healthy and competitive business climate in the digital era.
Law enforcement against online thrifting practices often experiences obstacles
due to the nature of transactions carried out virtually. Business actors can easily operate
anonymously, use fictitious accounts, and switch platforms if detected by the authorities.
This makes it difficult to enforce the law effectively. For example, research by (Sheila,
Syifa, Syafii, & Tarina, 2023) found that the validity of electronic contracts or e-contracts
is recognized in the Electronic Information and Transaction Law (UU ITE), but the form
of e-contracts that are still abstract often leads to different interpretations. Consumer
protection in e-commerce transactions is also a major concern. Based on research by
(Awalia, Arhansyah, Nugroho, & Thapsuandji, 2024), one of the biggest problems is
fraud and shipping errors that often occur because sellers and buyers are not face-to-face.
Consumers often receive items that do not match the description or are damaged during
delivery. To overcome this, Article 4 of Law Number 8 of 1999 concerning Consumer
Protection provides a legal basis to protect consumer rights. One example of the
implementation of this law is the case researched by (Rahmawati, Rahmadani, Heni, &
Kevin, 2023), which shows that if the goods are damaged during delivery, consumers are
entitled to compensation by Article 19 of Law Number 8 of 1999 concerning Consumer
Protection. However, the enforcement of these rights still often encounters practical
obstacles, especially due to the lack of awareness of consumers and sellers of their
obligations and rights.
Collaborative Governance in the Elderly Population Empowerment Program in Penggilingan
Village, East Jakarta Administrative City
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To increase the effectiveness of law enforcement, the government needs to
strengthen regulations and supervision of online buying and selling activities. This
includes increasing cooperation with social media platforms such as Instagram to identify
and crack down on accounts that violate the law. In addition, education to the public about
their risks and rights as consumers is very crucial. Research by (NATASHA, 2023) shows
that many consumers do not understand the legal protections available to them in online
transactions. More specific and clear regulations regarding the used clothing trade are
urgently needed to address the complexities that exist in the practice of online thrifting.
Research by (Saputro et al., 2024). shows that despite measures to ban the import of used
clothing, existing regulations have not been effective enough in addressing the various
challenges that arise. Existing regulations often only focus on prohibition, without
providing solutions or alternatives for businesses and consumers involved in this practice.
This creates a legal loophole that can be used by business actors to continue running their
businesses illegally. To create effective regulations, the government needs to consider
sustainability aspects in the fashion industry. Currently, consumers are turning to thrifting
as a form of support for sustainable fashion. Thrifting helps to extend the life cycle of
clothes and reduces the need for the production of new clothes that negatively impact the
environment. This makes existing regulations must be able to accommodate this aspect
of sustainability, while still protecting the local industry from the negative impact of
imported used clothing. In addition, the policies developed must be able to encourage
sustainable practices that support local industries. For example, the government can
provide incentives to local business actors who apply sustainable fashion principles.
These incentives can be tax deductions, technical assistance, or marketing support. Local
industries can thrive and compete with imported products while supporting broader
sustainability goals. This policy can also include educational programs for consumers
about the urgency of supporting local products and the positive impact of sustainable
fashion. More comprehensive and inclusive regulations must also involve a variety of
crucial stakeholders, including businesses, consumers, and non-governmental
organizations that focus on environmental issues and consumer rights. The regulations
developed will be more realistic and acceptable to all parties involved. Additionally, this
approach also helps to ensure that all aspects of thrifting practices, both positive and
negative, can be addressed effectively and equitably. Supported by good cooperation
between the government, industry, and the community, the new regulations can create a
healthy and sustainable business climate.
International cooperation can be an effective solution to overcome the illegal trade
in used clothes in Indonesia. Most of the second-hand goods sold in Indonesia come from
abroad and often come in without being supported by a legitimate process. This makes
coordination with the country of origin of the goods a crucial thing that must be done to
control the influx of illegally used clothes. This step could involve bilateral or multilateral
agreements that focus on monitoring and tightening procedures for the export-import of
used goods. Countries that are the main source of used clothes can be invited to implement
stricter standards in the sorting and export of their used goods so that only products that
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3794
meet certain standards can enter Indonesia. In addition, international e-commerce
platforms also play a crucial role in the sale of used clothes in Indonesia. Cooperation
with platforms such as Instagram, Shopee, and others is necessary to monitor and regulate
the sale of second-hand goods. These e-commerce platforms may be required to ensure
that sellers using their services comply with local and international regulations regarding
the trade in used clothing. Fatmawati in her research shows that easy access to imported
goods supported by e-commerce greatly affects people's lifestyle and consumptive
behaviour, which further strengthens the need for strict regulations. International
cooperation can include the exchange of information and technology between countries.
Countries with more advanced experience and technology in e-commerce monitoring and
regulation can share their knowledge and best practices. In addition, technologies such as
blockchain can be used to trace the origin of goods and ensure that goods sold in the
Indonesian market have been backed by legitimate processes and applicable regulations.
This cooperation must also involve international institutions focused on consumer
protection and fair trade. Organizations such as the World Trade Organization (WTO)
and the United Nations Conference on Trade and Development (UNCTAD) can provide
support and guidance for countries trying to tackle illegal trade. Indonesia can ensure that
the measures taken are not only effective but also by international standards. This
international cooperation can help create a fairer and more sustainable trade environment
while protecting consumers and local industries from the negative impacts of the illegal
trade in used clothing.
Consumer protection must be a top priority in law enforcement against online
thrifting practices. Consumers need to be provided with clear and correct information
about the items they are buying, as well as easy access to file complaints and get
compensation in case of problems. Research by (Awalia et al., 2024). emphasizes the
urgency of the role of e-commerce platforms in ensuring consumer protection by
providing effective monitoring and dispute-resolution mechanisms.
Conclusion
Law enforcement against thrifting practices supported by overseas online thrift
shops with the Instagram application is a complex challenge in Indonesia. Although Law
Number 7 of 2014 concerning Trade and Government Regulation Number 80 of 2019
concerning Trade Supported by Electronic Systems has regulated the prohibition of trade
in imported used goods, their implementation is often ineffective. The practice of thrifting
carried out online takes advantage of loopholes in supervision and regulation so that many
business actors can still sell imported used goods illegally. Article 1337 of the Civil Code
states "A cause is prohibited, if the cause is prohibited by law or if the cause is contrary
to decency or public order." This is because it is in the form of a ban on the import of
used goods from abroad mentioned in the Regulation of the Minister of Trade Number
40 of 2020 concerning Goods Prohibited from Export and Goods Prohibited from Import
in attachment part IV which includes types of used bags, used sacks, and used clothes. So
Collaborative Governance in the Elderly Population Empowerment Program in Penggilingan
Village, East Jakarta Administrative City
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3795
the practice of thrifting supported by online thrift shops abroad is contrary to Article 1337
of the Civil Code.
The main problem faced is the large number of sellers who use Instagram and
similar platforms to sell illegally imported used clothes. This practice not only violates
existing laws but also harms the domestic market as well as consumers. Law Number 7
of 2014 on Trade, trade-in imported second-hand goods, including clothing, prohibits to
protection of local industries and consumers from goods that may not meet health and
safety standards. To overcome this problem, cooperative actions are needed between the
government, social media platforms, and the community. The government needs to
strengthen regulations and increase scrutiny of online buying and selling activities,
including working with platforms such as Instagram to identify and crack down on illegal
accounts. In addition, educating the public about the urgency of supporting local products
and understanding existing regulations is crucial so that law enforcement against online
thrifting practices can run more effectively, protect consumers, and support the growth of
local industries and environmental sustainability.
Nur Aziah Eka Putri, Ratna Kartika Wati
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 8, August 2024 3796
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