Introduction

The recent controversy surrounding Ayam Widuran highlights the increasing legal and reputational risks for businesses caused by misleading product information, particularly regarding halal claims. Indonesia’s Law No. 33 of 2014 on Halal Product Assurance (“Halal Product Assurance Law”) and Law No. 8 of 1999 on Consumer Protection (“Consumer Protection Law”) provide not only administrative sanctions but also potential criminal liability for misleading claims. This article examines the Halal Product Certification and Labeling Obligation, and discusses the impact of false or misleading claims on business owners. As Indonesia moves to enforce stricter halal laws and consumer protection laws, businesses are now expected to comply with regulations, particularly regarding Halal product labeling.

Regulatory Framework 

1. Certification and Labeling Obligations Based on Halal Product Assurance Law

The Halal Product Assurance Law provides the core legal framework for halal compliance in Indonesia. Based on Article 4 of the Halal Product Assurance Law, every product that enters, is distributed, and is traded in the territory of Indonesia must be halal certified.

If a product has not received halal certification, Article 26 par. (2) of the Halal Product Assurance Law requires business actors to clearly label the product as “non-halal” to ensure transparency. In the case of Ayam Widuran, not only was the product not labeled as non-halal, but the business actor also made an affirmative halal claim which directly violates this legal obligation.

Failure to comply can result in administrative sanctions under Article 171 of Government Regulation Number 42 of 2024 on the Implementation of the Halal Product Assurance Sector, including:

1. A Written warning,

2. Administrative fines, and/or

3. Withdrawal of goods from circulation.

2. False or Misleading Claims Based On Consumer Protection Law

Indonesia's Consumer Protection Law strengthens consumers' rights to accurate and honest information. Based on Article 4 letter c of the Consumer Protection Law, every consumer has the right to obtain clear and correct information about a product.

More specifically, Article 8 par. (1) letters f and h, and Article 10 letter c of the Consumer Protection Law prohibit business actors from:

1. Producing and/or trading goods and/or services that do not comply with the promises stated on the labels;

2. Producing and/or trading goods and/or services that do not follow the provisions for halal production, as stated in the "halal" statement included on the label; and

3. Offering false or misleading statements regarding the condition of a good and/or service.

Therefore, making halal claims without official certification is considered misleading advertising. Violations of this provision are punishable under Article 62 par. (1) of the Consumer Protection Law, which allows for imprisonment of up to 5 (five) years, or a fine of up to Rp2,000,000,000 (two billion rupiah).

In this case, Ayam Widuran's actions can be interpreted as an attempt to mislead religious consumers, which is a violation of the law both administratively and potentially criminally, depending on the proven intent.

Conclusion

In conclusion, the Ayam Widuran case illustrates the legal consequences that may arise when business actors make unverified halal claims without proper certification. As outlined in the Halal Product Assurance Law and the Consumer Protection Law, such actions are not only administratively sanctionable but may also lead to criminal liability if found to be misleading or deceptive. The obligation to either certify products as halal or label them as non-halal is clear, and failure to comply risks violating consumers’ rights to accurate information. Moving forward, businesses must prioritize legal compliance and transparency in product labeling to avoid reputational harm and ensure consumer trust in a more strictly regulated marketplace.

This article is intended for general informational purposes only and does not constitute legal advice. For legal assistance or inquiries specific to your situation, please contact us at info@adplaws.com.