Validity of digital agreements and the legal relations of the parties in affiliate marketing

The development of digital technologies has led to the expansion of affiliate marketing as a crucial marketing strategy in the e-commerce ecosystem. However, the validity of digital agreements, which serve as the basis for legal relations between the parties in this practice, is subject to legal uncertainty. The purpose of this study was to analyse the validity of digital agreements in affiliate marketing from the perspective of positive law in Indonesia and their impact on the legal relationship between the parties involved – sellers and affiliates. Based on the regulatory approach, this study analysed the relevant regulations, such as the Law of Indonesia “On Electronic Information and Transactions” and the Civil Code of Indonesia, and assessed the existing legal gaps in the context of affiliate marketing. The study found that while digital transactions are legally recognised, key elements such as commission mechanisms, rights and obligations of the parties, and the use of electronic signatures are often insufficiently regulated, leading to legal uncertainty. This uncertainty affects the legal relationship between the parties, provoking the risk of contract abuse, an imbalance of legal positions between the seller and affiliates, and potential conflicts that may impede trust in the digital marketing ecosystem. The study demonstrated the need for more detailed and specific legal regulation to ensure the validity of digital agreements in affiliate marketing, provide legal certainty, and establish fair and sustainable legal relations for all parties involved