Definition of Consumer (Includes E-Commerce), Person, Goods, Service
by The Consumer Protection Act, 2019 provides clear definitions of important terms to ensure effective implementation of consumer rights and remedies. These definitions determine who can seek protection under the Act and what transactions are covered. The Act has expanded its scope to include e commerce transactions, online marketplaces, digital services, and modern forms of trade.
1. Consumer (Section 2(7))
According to Section 2(7) of the Consumer Protection Act, 2019, a consumer is any person who buys goods or hires or avails services for consideration, whether paid, promised, partly paid and partly promised, or under any system of deferred payment. The term also includes any user of such goods or beneficiary of such services with the approval of the buyer or hirer.
The Act specifically includes consumers who purchase goods or avail services through offline transactions, online transactions, electronic means, teleshopping, direct selling, and multi level marketing. Thus, e commerce consumers receive the same legal protection as traditional consumers.
However, a person obtaining goods for resale or for a commercial purpose is generally not considered a consumer. An exception exists where goods are purchased exclusively for earning livelihood through self employment. The definition ensures broad consumer protection in both physical and digital marketplaces and provides access to remedies against defective goods, deficient services, unfair trade practices, and misleading advertisements.
2. Person (Section 2(31))
According to Section 2(31) of the Consumer Protection Act, 2019, the term “person” has a broad meaning and includes various legal and natural entities. It includes an individual, a Hindu Undivided Family (HUF), a company, a firm, an association of persons whether registered or not, a cooperative society, and every artificial juridical person recognized by law.
The inclusion of different entities ensures that consumer protection provisions apply widely across society. Both individuals and organizations can be consumers if they satisfy the requirements prescribed under the Act. The definition also covers legal entities engaged in buying goods or availing services for purposes recognized under consumer law.
By adopting a broad definition, the Act ensures that consumer rights are not limited to individual purchasers alone. It enables different categories of persons to seek protection and legal remedies when they suffer loss or injury due to defective goods, deficient services, unfair trade practices, or misleading advertisements.
3. Goods (Section 2(21))
According to Section 2(21) of the Consumer Protection Act, 2019, the term “goods” shall have the same meaning assigned to it under Section 2(7) of the Sale of Goods Act, 1930. Goods include every kind of movable property other than actionable claims and money. The term also includes stock and shares, growing crops, grass, and things attached to or forming part of land that are agreed to be severed before sale.
Goods may be purchased through physical stores, online platforms, e commerce websites, mobile applications, or other commercial channels. If such goods are defective, unsafe, adulterated, or fail to meet promised standards, consumers can seek remedies under the Consumer Protection Act, 2019.
The definition is significant because the Act provides protection against defective goods and imposes liability on manufacturers, sellers, and service providers. It ensures that consumers receive quality products and appropriate compensation when goods cause loss, damage, or injury.
4. Service (Section 2(42))
According to Section 2(42) of the Consumer Protection Act, 2019, service means service of any description made available to potential users and includes facilities relating to banking, financing, insurance, transport, processing, supply of electrical or other energy, telecommunications, housing construction, entertainment, amusement, and information services.
The definition covers both traditional and digital services, including services provided through online platforms and electronic means. It ensures that consumers availing services through e commerce and digital channels receive legal protection.
However, the definition does not include services rendered free of charge or services provided under a contract of personal service. If a service suffers from any fault, imperfection, inadequacy, or deficiency in quality, nature, or manner of performance, consumers can file complaints and seek appropriate remedies under the Act. This broad definition strengthens consumer protection across various sectors of the economy.