S
Sahaj Vidhi
Law optional 2021 Paper II

Discuss the ambit & scope of 'consumer' as defined under the Consumer Protection Act, 2019.

Verified Answer

  1. Core Legal Answer & Context: The Consumer Protection Act, 2019 (COPRA 2019) significantly broadens the definition and scope of 'consumer' compared to its 1986 predecessor, reflecting the evolution of markets, especially with the rise of e-commerce. A 'consumer' is defined as any person who buys any goods or avails any services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. Crucially, it includes offline and online transactions, electronic means, teleshopping, direct selling, or multi-level marketing. The definition explicitly excludes persons who obtain goods for resale or for any commercial purpose. However, 'commercial purpose' does not include goods bought or services availed by a person exclusively for the purpose of earning livelihood by means of self-employment. This distinction is vital for determining who can seek redress under the Act.

  2. Relevant Statutes and Sections:

  • Consumer Protection Act, 2019:
    • Section 2(7): Defines 'consumer'.
      • "consumer" means any person who—
        • (i) 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 and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid and partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose;
        • (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the service for consideration paid or promised or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.
      • Explanation.—For the purposes of this clause,—
        • (a) the expression “commercial purpose” does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood by means of self-employment;
        • (b) the expressions “buys any goods” and “hires or avails any services” includes offline or online transactions through electronic means or teleshopping or direct selling or multi-level marketing."
  1. Important Landmark Cases:
  • Lucknow Development Authority v. M.K. Gupta (1994): While this case predates COPRA 2019, it was instrumental in broadening the interpretation of 'service' and 'consumer' under the 1986 Act, laying the groundwork for the expansive definitions in the current Act. It emphasized that the Act is for the protection of consumers and should be interpreted broadly.
  • National Insurance Co. Ltd. v. Harsolia Motors (2023): The Supreme Court clarified the 'commercial purpose' exclusion, reiterating that if goods or services are used for earning livelihood by self-employment, the person remains a consumer. This reinforces the protective intent of the Act for small entrepreneurs.
  1. Clear Conclusion: The Consumer Protection Act, 2019, significantly expands the ambit of 'consumer' to include virtually all individuals engaging in transactions for goods or services for personal use, regardless of the mode of purchase (online or offline). The key exclusions remain those purchasing for resale or large-scale commercial purposes, with a crucial carve-out for self-employment to ensure that small-scale entrepreneurs are not denied consumer protection. This broad definition aims to provide comprehensive protection to consumers in the modern marketplace.