Who Is A Consumer?

WHO IS A CONSUMER?
Section 2(d) of the Consumer Protection Act says that consumer means any
person who—
 buys or agrees to buy 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 person who actually buys
goods and such use is made with the approval of the purchaser
 hires or avails of any service or 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 service other than the one who actually
hires or avails of the service for consideration and such services are availed
with the approval of such person.
Consumer of goods - The provision reveals that a person claiming himself as a
consumer of goods should satisfy that—
 THE GOODS ARE BOUGHT FOR CONSIDERATION
 ANY PERSON WHO USES THE GOODS WITH THE APPROVAL OF THE BUYER IS
A CONSUMER
Example : A purchased a scooter which was in B’s possession from the date of
purchase. B was using it and taking it to the seller for repairs and service from
time to time. Later on B had a complaint regarding the scooter. He sued the
seller. The seller pleaded that since B did not buy the scooter, he was not a
consumer under the Act. The Delhi State Commission held that B, the
complainant was using it with the approval of A, the buyer, and therefore he was
consumer under the Act.
 PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A
CONSUMER
Examples :
1. A buys a truck for plying it as a public carrier by himself, A is a
consumer.
2. A buys a truck and hires a driver to ply it, A is not a consumer.
3. A has one cloth shop. He starts another business of a

photocopier and buys a photocopy machine therefore. He
hasn’t bought this machine exclusively for the purpose of
earning livelihood. He is not a consumer under the Act.
 ANY PERSON WHO OBTAINS THE GOODS FOR ‘RESALE’
OR ‘COMMERCIAL PURPOSES’ IS NOT A CONSUMER
Example :
Smt. Pushpa Meena v. Shah Enterprises (Rajasthan) Ltd.
A jeep was purchased to run it as a taxi. The question was

whether the buyer of the jeep was a consumer under the Act.
The Rajasthan State Commission held that to use the jeep as
a taxi with the object to earn profits was a commercial
purpose, and therefore, the buyer/user was not a consumer
within the meaning of the Act.
Consumer of services - A person is a consumer of services if he
satisfies the following criteria:
 SERVICES ARE HIRED OR AVAILED OF
Example :1) A goes to a doctor to get himself treated for a
fracture. Here A is hiring the services of the doctor. Thus he is
a consumer.
 BENEFICIARY OF SERVICES IS ALSO A CONSUMER

Example : A takes his son B to a doctor for his treatment. Here A
is hirer of services of the doctor and B is beneficiary of these
services. For the purpose of the Act, both A and B are
consumers.
CASE
Winner of a lottery
Case of Byford v. S.S. Srivastava [1993].
 Byford Motors inserted an advertisement in newspapers stating that a person
booking a premier Padmini Car could enter into a contest in a lottery
conducted by them.
 Person successful in the draw would be entitled to two free tickets from New
Delhi to New York and back.
 Shri S.S. Srivastava was successful in the draw. He asked the dealers to give
him the value of two tickets
 Was asked to produce two passports to enable them to book the tickets. He
produced one passport immediately but the second after the end of the
financial year.
 M/s. Byford Motors refused to give the tickets on the ground that accounts of
the financial year had been closed and that they could not carry forward the
liability of that year to the next financial year under the provisions of the
Income-Tax Act and Rules.
 The Court held, that the complainant was not a consumer within the
meaning of Sec.2 (1) (d) of the Act. He had received the car for which he
had paid and there was no complaint as to its condition.
 Receiving air tickets to New York was an additional attraction attached

to the sale, which depended upon a lottery draw. It is not an intrinsic part
of the contract deal for which payment was made. Hence he had no right
to get redressal under the Act.
 The complainant's argument that this would fall under unfair trade
practice, was also not accepted.
Rights of a consumer
The Act has detailed some rights of consumers which

need to be protected. These are :
 Right to safety
 Right to information
 Right to choose
 Right to redressal
 Right to education

Who Is A Consumer?

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Who Is A Consumer?

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WHO IS A CONSUMER?

 THE GOODS ARE BOUGHT FOR CONSIDERATION

2. A buys a truck and hires a driver to ply it, A is not a consumer.

3. A has one cloth shop. He starts another business of a

A jeep was purchased to run it as a taxi. The question was

 BENEFICIARY OF SERVICES IS ALSO A CONSUMER

 Receiving air tickets to New York was an additional attraction attached

The Act has detailed some rights of consumers which

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