Consumer

Who is a consumer?
A consumer is a person who-
(i) buys any “goods” for a consideration; or
(ii) hires or avails of any “services” for a consideration ;
(iii) “uses the goods” with the approval of the person who has bought the
goods for consideration.
Consideration.
(iv) ”is beneficiary of services ” with the approval of the person who has
hired the services for consideration.
Consideration may have been paid or partly paid and partly promised. A
person may also buy the goods or may hire or avail of the services under
any system of deferred payment. Buying of goods and hiring of services has
to be necessarily for a consideration. There should be a completed
transaction of sale and purchase (Consideration has been discussed under
the Law of Contracts above).
A person who obtains such goods for resale or any commercial
purpose is not a consumer. Commercial purpose does not include use by a
person of goods bought and used by him and services availed by him
exclusively for the purpose of earning his livelihood by means of self-
employment.
Payment of direct or indirect taxes is not consideration paid for
hiring the services [Municipal Council, Bikaner v. Shambhu Yadav -1992
CPJ 164 (Raj)].
Thus a person is a consumer when he purchases for private use or
consumption.
Nominee of a person insured under LIC is a consumer. A person obtaining
goods for commercial purpose is not a consumer [Oswal fine art v. M/s.
HTMT ,Madras –Petition NO. 1/88(Del)].
A person claiming himself as “consumer” should satisfy ,among
others,three conditions ,namely
(i) the service should have been rendered to him.
(ii) the service should be hired by him.
(iii) he should have paid the consideration for hiring the service.

A person who buy goods and uses them himself ,exclusively for the purpose
of earning his livelihood, by means of self employment is within the
definition of the expression “consumer”

Where a young child was taken to private hospital by parents and treated by
the doctor, it was held that not only the child but his parents also were
“consumer”
Who is person? [ Sec .2(1))(m)]

A PERSON INCLUDES –
(i) a firm whether registered or not;

(ii) a Hindu Undivided Family;

(iii) a Co-operative society;

(iv) every other association or persons whether registered under the

societies
Registration Act 1860 , or not (Sec. 2(1)(m)).

The definition of a person is inclusive .It includes juristic persons. Word

“person” therefore would include both “individuals” and also “juristic
person”. Any company or association or body of individuals whether
incorporated or not would means “a person”.

A person has to be a consumer within the definition of the word “consumer”

under the Consumer Protection Act, to get remedy. Therefore a consumer
need not be only individual or an incorporated body or juristic person .Even
a body of individuals or an association of persons whether registered or not
can be a consumer .Generally, in case of a grievance of public nature, an
association takes up a cause in the form of a public interest litigation.
Government may also initiate an action under the Act. A member of a co-
operative society is entitled to file complaint against society [Dilip Bapat v.
Panchwati Co-op Hsg .Society-1991(1)(PR 27)].

Who is not a consumer?

A person is not a consumer if –
(i) he obtains the goods for “resale” or for any “commercial purpose”; or
(ii) buys goods without consideration; or
(iii) hires or avails of any services without consideration; or
(iv) uses the goods without the approval of the person who has bought the
goods for consideration;
or
(v) is beneficiary of services without the consent of the person who has
hired the services for consideration [Sec.2(1)(d)];or
(vi) he obtains service under a contract of personal service
What is goods ?

The meaning of the word “goods” under the Consumer Protection Act is
the same as defined in the Sales of Goods Act, 1930. Sales of goods Act,
defines “goods” as follows:
“Goods means every, movable property other than actionable claims and
money. Goods includes stock and shares, growing crops, grass and things
attached to or forming part of the land which are agreed to be served before
sale or under the contract of sales”.

What is service?

Service of any description which is made available to potential users and

includes the provisions of facilities in connection with banking ,financing ,
insurance, transport, processing , suppl yof electrical or other energy,
boarding or lodging or both, house construction, entertainment, amusement
or other information.

Free services and personal service:-

under a control have been excluded from the

protective spell of the Act.
Thus services must be of commercial nature in the
sense that they must be on payment.
The payment may be in cash or kind.
It may be made either at once or partly at once or
partly later i.e. ,on credit.
For services rendered without consideration, the
complaint cannot be maintained in forum
 What are held to be services?

‡Services rendered by Housing and Development Board;

‡Services rendered by an agency for publication of news;
‡Services rendered by Post and Telegraphs department;
‡Services rendered by Insurance Company, including services for
settlement of claims ;
‡Services rendered by banking and financial institutions;
‡Services rendered by transport agencies like bus, rail, air, sea etc.;
‡Processing services;
‡Supply of electricit y;
‡Hotel, lodging and boarding services;
‡Services rendered by agencies providing entertainment or amusement like
cinema houses,
theatres, etc;
‡Services rendered by a hospital or nursing home on payment of fees;
‡Supply of food on board of Aircraft

What are held not to be services?

‡Faulty or medical treatment offered in the Government hospital;

Services rendered by Municipal Corporation, as payment of director

indirect taxes by public is not consideration paid for hiring the services ;

Services rendered by a private tutor, as it is a contract of personal service;

Services rendered by an Advocate , as it is a contract of personal service;
Any service which is rendered gratuitously, i.e. for which no
Consideration is paid;
Non-allotment of shares, in a company;

± Claim f or compensation arising out of motor accident as such a claim

cannot be said to be in relation to any service hired or availed by
consumer

Service rendered by employee to his employer

Rendering of service by medical practitioner free of charge to all patients