consumer
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
- Section 2(7), Consumer Protection Act, 2019
- Lucknow Development Authority v. M.K. Gupta, 1993 INSC 365: housing by a statutory authority is a service
See also
deficiency in service · unfair trade practice · caveat emptor · product liability
Read more in the study notes
- Judicial power of the administration: quasi-judicial functions and administrative adjudication (Administrative Law)
- Public corporations and public undertakings: status, classification, liability and control (Administrative Law)
- Need for ADR, international commitments and suitability of disputes (Alternative Dispute Resolution Systems)
- The Mediation Act, 2023: scheme, enforcement and status (Alternative Dispute Resolution Systems)
- Bank: definition, kinds of banks and their functions (Banking Law)
- The central bank and the Reserve Bank of India: evolution, organisation and functions (Banking Law)