In our lives we buy various items for consumption on a daily basis. These can be for the sustenance of our livelihoods, creating self-employment or enjoying luxuries. In the words of John F. Kennedy, “Consumer, by definition, includes all of us”. Every person is a consumer through one way or another. Therefore, with being a consumer, there are certain rights given and these rights need to be governed and protected.
In India, the statute administering the rights of a consumer is the Consumer Protection Act, 2019.
Who is a Consumer?
We understand in layman’s terms that anyone who purchases and uses goods is a consumer. However, there is a legal definition of the word ‘Consumer”. Section 2(7) of the Consumer Protection Act, 2019 says:
“consumer” means any person who—
- buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
- hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.
Explanation.—For the purposes of this clause,—
(a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;
(b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing”
It can be summarized that a Consumer, under Indian Law is, any person who obtains goods and services for a consideration or any person who uses these goods and services with the approval of the buyer, who does not resell these goods or use them for commercial purposes.
There are two kinds of consumers-
- Consumer of Goods
- Consumer of Services
Person who obtains goods and services for a consideration
Any person who obtains goods or services for a consideration is a Consumer. Consideration is defined in the Indian Contract Act, 1872 as “when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something”.
Hence, if a person A obtains a refrigerator for his house, from B, giving money as consideration, then A is a Consumer.
In Byford v. S. S. Srivastava, an automobile company put out an advertisement for an offer of lottery to win a round trip to New York on the purchase of a car of the given model. The plaintiff purchased the car and entered the lottery. He won the lottery but the tickets were not delivered to him so he sued the company. It was held by the National Commission that, the consideration paid by him was for the purchase of the car and not the tickets. Hence, he is not a Consumer.
Person who uses goods and services with the approval of the buyer
Sometimes, goods or services purchased by one can be used by others. A common example of this is that goods purchased by one member of the family are used by the other members of the family. In these situations, if the person is using the goods with the approval of the person who bought it, then he is a Consumer.
In the case, Dinesh Bhagat v. Bajaj Auto Ltd., a scooter was bought by A, and then used by the plaintiff with A’s consent. The plaintiff took the scooter for repairs and when problems arose, he sued the seller. The seller contended that since the plaintiff did not buy the scooter, he was not a consumer and could not sue. The Delhi State Commission held that, since the scooter was used by the plaintiff with the A’s consent, he was Consumer under the meaning of the Act.
Person obtaining goods and services for Resale or Commercial purposes
When a person obtains goods with the object of selling them, then he is not a Consumer under the definition provided in the Act. Similarly, if a person acquires goods or services for a commercial purpose and to make profit off of it, then he is not a Consumer.
In Smt. Pushpa Meena v. Shah Enterprises (Rajasthan) Ltd., the plaintiff purchases a Jeep for the purpose of using it as a taxi. Question that arose in the case was whether the plaintiff was a consumer. The Rajasthan State Commission held that, since the Jeep was bought for the purpose of earning profit, it was bought for commercial purposes and hence, the plaintiff was not a consumer.
Persons buying goods and services for the purpose of Self – Employment
The explanation of the definition of consumer says that if a person uses good or services as a mean of earning a livelihood by self-employment, then he is a consumer within the meaning of the definition. The intention of this provision is to exclude big business houses that use these commodities as means of earning profit but include small self-sufficient persons meaning to earn an income through self-employment.
In Rampion Pharmaceuticals v. Dr. Preetam Shah, the plaintiff was an Ophthalmologist, who purchased a machine for his clinic. The machine was defective, so he sued the respondent. The respondent contended that the machine was used by the plaintiff to earn profits and hence, he was not a consumer. This plea was rejected by the National Commission since the plaintiff did not run a big hospital but a small clinic and was self-employed.
Conclusion
The word consumer has been given a wide meaning to cover various persons procuring goods and services for use. The Consumer Protection Act, 2019 was constituted to give rights to consumers and protect them against malpractices of the sellers. Consumer forums and fast-track Consumer Courts have been instituted across the country to provide a platform for consumers to get justice. Here, it the duty of the consumers to be aware of their rights and duties and be alert and responsive towards any unfairness by sellers and uphold their integrity.
This article has been written by Vallari Gokhale, 2nd Year BALLB student of University School of Law and Legal Studies, Guru Gobind Singh Indraprastha University.
Also Read – What is Doctor’s Liability in Medical Negligence Cases?
