Who is Not a Consumer Under the Consumer Protection Act, 2019?

The Consumer Protection Act, 2019 was enacted to provide a framework for protecting the interests of consumers in India. The law empowers consumers to file complaints and seek redress for grievances related to defective products or deficient services. However, it’s important to understand that not everyone is considered a consumer under the Act. The definition of “consumer” is specific and has certain exclusions.

A person is not considered a consumer if they:

1. Purchase Goods or Avail Services Free of Charge

A person who receives goods or services without any consideration (free of charge) is not regarded as a consumer. The Consumer Protection Act only covers transactions where the consumer has made a purchase or paid for the goods or services in some form.
For example, if someone receives a free sample of a product or services like free trials, they cannot file a complaint under the Act if the product or service is defective. This exclusion ensures that only those who invest their resources are entitled to seek redressal.

2. Purchase Goods or Avail Services for Commercial Purposes

If the goods or services are bought for commercial purposes, the individual is not considered a consumer. Commercial purposes refer to any use of goods or services in the course of business, resale, or for production of goods and services for profit.
For instance, a business owner who buys raw materials for manufacturing goods or a wholesaler purchasing products for resale cannot file a consumer complaint, as they are purchasing goods for commercial use. Only personal use and livelihood-oriented purchases fall under the purview of the Act.

3. Avails Services Under a Contract of Service

Services that are availed under a contract of service are also excluded from the definition of a consumer. A contract of service typically refers to an arrangement where an individual is employed to perform services for an employer. For example, a domestic worker or a contract employee hired by an individual or company for specific duties does not qualify as a consumer, even if they face issues such as non-payment of wages or substandard working conditions. In such cases, the worker may need to approach labor courts or relevant employment tribunals.

These exclusions are important as they delineate the scope of consumer protection, ensuring that the Act applies primarily to those engaging in consumer transactions for personal or livelihood purposes, rather than in the course of business or employment.

What are Goods Under the Consumer Protection Act?

The Consumer Protection Act, 2019 defines goods as movable property that is not classified as money or actionable claims. The definition of “goods” includes a broad range of items, but some key points to remember are:

• Movable Property: Goods must be tangible and capable of being moved. This includes items like clothing, electronics, vehicles, and furniture.
• Exclusion of Actionable Claims and Money: Goods exclude monetary assets or claims, such as promissory notes, stocks, or bonds, as well as things like money or the right to sue (actionable claims).
• Includes Stock, Shares, and Growing Crops: The term also encompasses stocks and shares, which are financial assets, as well as growing crops, grass, and things attached to or forming part of the land, provided these are agreed to be severed before sale or under the sale contract.

In simple terms, goods refer to all physical items that can be transferred or sold, but not money or rights. For example, if you purchase a television or a refrigerator, they are considered goods under the Consumer Protection Act, and you can seek redress if they are defective.

What is a Defect in Goods?

The term defect is crucial in determining whether a product is suitable for sale under the Consumer Protection Act. A defect refers to any fault, imperfection, or shortcoming in a product that makes it unfit for the purpose it was purchased for. A defect could manifest in various forms, including:

• Quality: If a product does not meet the standard or quality that is required by law, or promised by the seller.
• Quantity: If the product is not the quantity that was agreed upon or expected.
• Potency: For products like medicines, if they are not potent or effective as promised.
• Purity: If the product contains impurities or fails to meet the claimed purity levels (e.g., food products).
• Standard: If the product does not meet the advertised or required standards.

For example, if you buy a refrigerator and it does not cool effectively or has manufacturing defects, it would be considered a defect in the product. The Consumer Protection Act ensures that consumers are protected against such defective goods, and they have the right to seek compensation, replacement, or a refund from the seller.

What are Services Under the Consumer Protection Act?

The Consumer Protection Act defines services as services of any description made available to potential users, and it includes a wide array of services across various sectors. These include, but are not limited to:

• Banking and Financing Services
• Insurance Services
• Transport Services
• Processing Services
• Supply of Electrical or Other Energy
• Board or Lodging
• Housing Construction Services
• Entertainment and Amusement Services
• News and Information Services

The Act defines services in a broad sense to ensure that consumers are protected across all sectors, from online shopping to healthcare, travel, and education. However, it is important to note that services rendered free of charge or under a contract of personal services (e.g., employment contracts) do not fall under the definition of services covered by the Act.

For example, if you hire a travel agency for booking a vacation package and the service is substandard (e.g., poor-quality accommodations or transportation), you are entitled to compensation under the Act. However, if the service is rendered free of charge, such as a free seminar or a charitable service, the consumer rights would not apply.

Key Points of Exclusion

Here are the important exclusions under the Consumer Protection Act for your reference:

• Goods/Services received for free: No rights under the Act for defective goods or services received without charge.
• Commercial purchases: Goods or services purchased for business or resale purposes do not qualify for protection under the Act.
• Employment-related services: Services under employment contracts or personal services are excluded.
• Goods/Services outside the Act’s scope: Financial instruments like stocks, bonds, or money are not included.

Conclusion

Understanding who is not a consumer under the Consumer Protection Act, 2019 helps set clear boundaries for when the law applies. The Act is designed to protect individuals who purchase goods or avail services for personal use or livelihood, not those using goods or services for business or employment purposes. The definition of goods, defects, and services is also clearly laid out to ensure consumers can seek redress if their products or services are faulty or deficient.

If you fall under the category of a consumer and are facing issues with defective products or substandard services, you have the right to seek redress through the appropriate consumer forums. To ensure that your consumer rights are upheld, consider consulting with a legal expert at Legal Light Consulting, the best law firm for filing consumer complaints and sending legal notices. They can assist you in navigating the legal process and help protect your rights as a consumer.