Consumer

What is a Consumer?

A **consumer** is any person who purchases goods or avails services for a price (consideration), and who uses such goods or services for personal use and not for resale or commercial purposes. Under Indian law, the term is specifically defined to ensure that ordinary buyers and service users have access to a dedicated legal framework to address grievances related to defective products, deficient services, unfair trade practices, and misleading advertisements.

In everyday terms, when you buy a product from a shop or online platform, or hire a service such as medical treatment, insurance, or telecommunications, you are a consumer. The law recognises your right to receive what you paid for and provides a streamlined mechanism to seek redressal if something goes wrong.

Legal Definition and Framework

The definition of "consumer" is provided by **Section 2(7) of the Consumer Protection Act, 2019 (CPA 2019)**, which replaced the older Consumer Protection Act, 1986.

Key Legal Provisions

- **Section 2(7)(i) — Consumer of goods:** 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. It includes any user of such goods (other than the buyer) when such use is with the buyer's approval. It does **not** include a person who obtains goods for resale or for any commercial purpose.

- **Section 2(7)(ii) — Consumer of services:** Any person who hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of such services (other than the hirer) when such services are availed of with the hirer's approval. It does **not** include a person who avails services for any commercial purpose.

Important Clarification — Commercial Purpose Exception

The **Explanation** to Section 2(7) clarifies that "commercial purpose" does not include the use by a person of goods bought and used exclusively for the purpose of earning their livelihood by means of self-employment. This means a person who buys a sewing machine, auto-rickshaw, or computer to earn their livelihood through self-employment is still considered a consumer and can seek protection under the Act.

Consumer Rights Under the CPA 2019

**Section 2(9)** of the CPA 2019 enumerates the following consumer rights:

1. **Right to be protected** against the marketing of goods, products, or services which are hazardous to life and property.

2. **Right to be informed** about the quality, quantity, potency, purity, standard, and price of goods, products, or services.

3. **Right to be assured** of access to a variety of goods, products, or services at competitive prices.

4. **Right to be heard** and to be assured that consumer interests will receive due consideration at appropriate forums.

5. **Right to seek redressal** against unfair trade practices or restrictive trade practices, unscrupulous exploitation, and defective goods and deficient services.

6. **Right to consumer awareness.**

Three-Tier Consumer Dispute Redressal Mechanism

The CPA 2019 establishes a three-tier quasi-judicial machinery for resolution of consumer disputes:

1. District Consumer Disputes Redressal Forum (District Commission)

- **Jurisdiction:** Complaints where the value of goods or services and compensation claimed does not exceed **Rs. 1 crore**.

- **Composition:** President (who has been or is qualified to be a District Judge) and at least two members.

2. State Consumer Disputes Redressal Commission (State Commission)

- **Jurisdiction:** Complaints where the value exceeds Rs. 1 crore but does not exceed **Rs. 10 crore**. Also hears appeals from District Commissions.

- **Composition:** President (who is or has been a Judge of a High Court) and at least four members.

3. National Consumer Disputes Redressal Commission (NCDRC)

- **Jurisdiction:** Complaints where the value exceeds **Rs. 10 crore**. Hears appeals from State Commissions.

- **Composition:** President (who is or has been a Judge of the Supreme Court) and at least four members.

Who is Not a Consumer?

The following persons do not qualify as consumers under the CPA 2019:

- A person who buys goods for **resale** (a wholesaler buying goods to sell to retailers).

- A person who avails services for **commercial purposes** (a company hiring consultants for its business operations).

- A person who receives goods or services **free of charge** (unless they are a beneficiary of the original purchase with the buyer's approval).

When Does This Term Matter?

Defective Products

If a consumer purchases a product that is defective — a malfunctioning appliance, contaminated food, or a vehicle with manufacturing defects — they can file a complaint before the appropriate Consumer Commission. The consumer can claim replacement, refund, compensation for loss, and even punitive damages.

Deficient Services

If a service provider fails to deliver the promised quality — a hospital provides negligent medical treatment, an insurance company wrongly rejects a claim, or a telecom operator provides poor service — the consumer can seek compensation for the deficiency.

E-Commerce Transactions

The CPA 2019 explicitly covers **e-commerce transactions** under Section 2(16), defining "electronic service provider" and bringing online marketplaces within the ambit of consumer protection. The **Consumer Protection (E-Commerce) Rules, 2020** impose obligations on e-commerce entities regarding product information, grievance redressal, and return policies.

Unfair Trade Practices and Misleading Advertisements

**Section 2(47)** defines unfair trade practices, including false or misleading advertisements, bait-and-switch tactics, and deceptive pricing. The **Central Consumer Protection Authority (CCPA)**, established under Section 10, has the power to investigate, recall products, impose penalties, and prohibit misleading advertisements.

Medical Negligence

Medical services fall within the definition of "service" under the CPA. The Supreme Court in **Indian Medical Association v. V.P. Shantha (1995) 6 SCC 651** held that medical practitioners provide services and are amenable to consumer complaints for negligent treatment. However, after the 2019 Act, the position has been reaffirmed and strengthened.

Practical Significance

- Consumer complaints are designed to be **simple, affordable, and speedy**. No court fee is required in most cases, and the procedure is less formal than civil courts.

- **Limitation period:** A consumer complaint must be filed within **2 years** from the date on which the cause of action arises (Section 69).

- The CPA 2019 introduced **product liability** (Sections 82-87), making manufacturers, sellers, and service providers liable for harm caused by defective products or deficient services.

- **Mediation** is available as an alternative to adjudication under Sections 37-41, allowing parties to settle disputes amicably.

- Consumers can file complaints **online** through the e-Daakhil portal, eliminating the need to physically visit the Consumer Commission.

Frequently Asked Questions

Can a company or organisation file a consumer complaint?

Generally, the CPA 2019 protects individual consumers. However, a company or organisation that purchases goods or services for purposes other than resale or commercial use may qualify as a consumer. Additionally, **recognised consumer associations** can file complaints on behalf of consumers under Section 35(1)(c). If the goods are used for commercial purposes, the company does not qualify as a consumer.

Are government services covered under consumer protection?

The Supreme Court has held that services provided by government agencies and public sector undertakings, for which a fee or charge is collected, fall within the definition of "service." However, sovereign functions of the government (such as defence, taxation, and policing) are not covered. Services like electricity supply, water supply, transport, and telecommunications by public utilities are subject to consumer protection.

What is the difference between a consumer complaint and a civil suit?

A **consumer complaint** is filed before Consumer Commissions established under the CPA 2019, follows a simplified procedure, and is specifically for consumer grievances. A **civil suit** is filed before a civil court under the CPC, follows formal court procedure, and covers a broader range of disputes. Consumer complaints are generally resolved faster and at lower cost than civil suits. However, consumers have the option to approach either forum — the consumer forum or the civil court.

Can a consumer seek compensation for mental agony?

Yes. Consumer Commissions regularly award compensation for **mental agony, harassment, and inconvenience** suffered by consumers due to defective products or deficient services. The quantum depends on the facts and circumstances of each case. Courts have awarded compensation ranging from a few thousand rupees to several lakhs for mental distress caused by negligence, deficiency, or unfair trade practices.