KSLU Corner™ New AIBE previous QP

consumer

English · Contract and commercial

Meaning. A person who buys goods or hires services for consideration, otherwise than for resale or a commercial purpose.

Section 2(7) of the Consumer Protection Act, 2019 defines a consumer. It covers the buyer and any user of the goods with his approval, and the hirer of services and any beneficiary. Transactions online, by teleshopping, direct selling or multi-level marketing are included. A person who buys for resale or a commercial purpose is excluded, but buying goods or services exclusively to earn a livelihood by self-employment is not a commercial purpose.

Services rendered free of charge, and contracts of personal service, fall outside the Act. Courts have read “service” widely, holding that housing built by a statutory development authority and medical services for a fee are covered. A consumer complains to the District, State or National Commission depending on value.

Example

The farmer who bought defective seed to grow his own crop is a consumer; buying for self-employed livelihood is not a commercial purpose.

In Indian law

See also

deficiency in service · unfair trade practice · caveat emptor · product liability

Read more in the study notes

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