Introduction
The Consumer Protection Act, 2019 protects individuals who purchase goods or use services in the marketplace. To apply this protection, the law clearly defines who qualifies as a consumer.
A consumer may be a consumer of goods or a consumer of services. Section 2(7)(i) of the Act explains who is treated as a consumer of goods.
Meaning / Definition
Under Section 2(7)(i) of the Consumer Protection Act, 2019, a consumer of goods is a person who buys goods for consideration (price).
The price may be:
- fully paid,
- partly paid and partly promised, or
- payable under a system of deferred payment (payment made later).
A person who uses the goods with the approval of the buyer is also treated as a consumer.
However, a person who buys goods for resale or for commercial purposes is generally not considered a consumer under the Act.
Modes or Types
Buyer of Goods for Consideration
A person becomes a consumer if they buy goods for a price.
For the law to apply, the following conditions must exist:
- There must be a sale transaction between buyer and seller.
- The transaction must involve goods.
- The goods must be purchased for consideration (payment or price).
The meaning of "sale" and "goods" is interpreted according to the Sale of Goods Act, 1930, while the meaning of consideration is interpreted according to the Indian Contract Act, 1872.
User of Goods with Approval of the Buyer
A person who did not buy the goods may still be treated as a consumer if they use the goods with the approval of the buyer.
For example, family members, relatives, or friends using the goods with the buyer’s permission may qualify as consumers if a defect in the goods causes harm.
The words “with the approval of the buyer” mean that the person must be a lawful user of the goods.
Exclusion: Goods Purchased for Resale or Commercial Purpose
A person who purchases goods for resale or commercial exploitation is not treated as a consumer.
- Resale means buying goods with the intention of selling them again.
- Commercial purpose refers to using goods in a business for profit.
Such buyers cannot claim protection under the Act as consumers.
Exception: Goods Used for Self-Employment
The Act provides an important exception.
A person may still be considered a consumer even if goods are used for commercial purposes if the following conditions are satisfied:
- The goods are used by the buyer himself.
- The use is only for earning livelihood (daily income).
- The income is earned through self-employment.
For example, a person who buys a machine and personally uses it to earn income may still be treated as a consumer.
Important Case Law
Dinesh Bhagat v. Bajaj Auto Ltd.
A person purchased a scooter but another person was using it with the buyer’s permission. The user took the scooter for repairs and later filed a complaint against the seller.
The seller argued that the user was not the buyer and therefore not a consumer.
The Delhi State Commission held that the user was a consumer because he used the scooter with the approval of the buyer. This case shows an exception to the rule of privity of contract (rule that only parties to a contract can sue).
Distinction / Comparison
| Basis | Consumer | Not a Consumer |
|---|---|---|
| Purpose of purchase | Personal use or approved use | Resale or large commercial use |
| Payment | Goods bought for consideration | Goods not bought or used for profit-making business |
| Self-employment | Allowed if used personally to earn livelihood | Not allowed if used in large business with employees |
Practical Example
A buys a truck and drives it himself as a public transport vehicle to earn his livelihood. In this case, A is a consumer because the truck is used for self-employment.
However, if A buys the truck and hires a driver to run it as part of a transport business, A will not be treated as a consumer under the Act.
Summary
- A consumer of goods is defined under Section 2(7)(i) of the Consumer Protection Act, 2019.
- A consumer is a person who buys goods for consideration (price).
- A user of goods with the buyer’s approval is also treated as a consumer.
- Persons who buy goods for resale or commercial business are generally not consumers.
- An exception exists when goods are used personally for earning livelihood through self-employment.
- The law protects consumers against defective goods and unfair practices in the market.