Unlawful Acts by Contract Manufacturing Companies Arising from the Use of Hazardous Substances in Indonesia’s Cosmetics Industry

Abstract

This study aims to analyze whether the use of hazardous substances by contract manufacturers in cosmetic production satisfies the elements of an unlawful act and to examine the resulting civil liability. This study employs a normative legal research method using statutory and conceptual approaches. The legal issues are analyzed prescriptively based on the theory of unlawful acts and the theory of legal liability. The findings demonstrate that the use of hazardous substances satisfies all elements of an unlawful act as stipulated in Article 1365 of the Indonesian Civil Code, namely the existence of an act, unlawfulness, fault, damage, and a causal relationship. Such conduct also contravenes Law Number 17 of 2023 on Health, Government Regulation Number 28 of 2024, and regulations issued by the Indonesian Food and Drug Authority concerning cosmetic safety and quality. Accordingly, contract manufacturers may be held civilly liable to provide compensation for material and immaterial damages and to restore the injured parties to their prior condition. Contractual clauses limiting liability do not exempt contract manufacturers from civil liability where the damage arises from their fault or violation of the law.