CONSUMER PROTECTIONConcepts and definitions

What is a ‘Complaint’ ?

The complainant has suffered loss or damage as a result of any unfair trade practice adopted by any trader or service provider;

The goods mentioned in the complaint suffer from one or more defects;

The services hired or availed suffer from deficiency in any respect;

Contd.

The trader or service provider has charged for the goods or for the service a price in excess of the price –

(a)  fixed by or under any law for the time being in force

(b)  displayed on the goods or any package containing such goods ;

(c)  displayed on the price list exhibited by him by or under any law for the time being in force;

(d)    agreed between the parties; The goods or services which will be hazardous to life

and safety when used are being offered for sale to public.

Who is a ‘Consumer’ ?

A consumer is a person who buys or hires and goods or services for a consideration, i.e. free services are not covered under the Act.

It excludes a person who buys or hires for commercial purpose/activity and not for self-consumption.

Therefore, you are a consumer, if you have paid for anything for self consumption, and not hired or purchased for selling it further or to be deployed in a commercial activity on a large scale, as was held in Laxmi Engineering Works vs. P.S.G. Industrial Institute on 4 April, 1995

What is ‘commercial purpose’ ?

Commercial purpose encompasses all business activities. It means occupied with commerce.

All such cases where goods are purchased for being used in any activity directly to generate profit will come under the purview of commercial purpose. E.g.- Purchase of printing machine for commercial purpose, purchase of taxi for commercial purpose, purchase of machine in a plant or factory etc.

Contd.

Exceptions:If the goods are used by the buyer himself exclusively for purpose of self-employment or earning his livelihood then same will not come under the purview of commercial purpose. e.g. A purchase of truck as public carrier for self employment; A starts a small PCO shop to earn his livelihood etc.

What is ‘defect’ ?

Defect mean lack or absence of something essential for completeness.

So if there is any shortage in the quality of goods, it amounts to defect in goods.e.g. TV set purchased developed with black spots on its picture tube; gas cylinder with excessive gas etc.

What is ‘deficiency’ ?

Deficiency means any fault, imperfection, shortcoming or inade quacy in the quality, nature and manner of performance which is required to be maintained by or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

Hence, deficiency refers to the service and defect refers to any goods.

Deficiency in Services

We have read deficiency, now lets read services:"service" means service of any description which is made avail able to potential users and includes, the provision of  facilities in connection with

- banking, - financing insurance, - transport, - processing, - supply of electrical or other energy,

Contd.

- board or lodging or both, - housing construction,- entertainment, amusement or the purveying of news or other information,

but does not include the rendering of any service free of charge or under a contract of personal service.

Contd.

So services means services made available to potential users that is not only to actual users bit also the those who are capable of using it;

It should not be free of charge; It should not be under a contract of

personal service.

Hence deficiency as explained earlier in mentioned services amount to deficiency in services under the Act.

Unfair Trade Practice

Any trade practice which for the purpose of promoting the sale, use or supply of any goods or for provision of any services, adopts any unfair or deceptive practice including any of the following practices:- falsely representing the goods as conforming to a particular standard, quality, quantity, potency, purity;- falsely representing the services are of a particular standard, quality or grade;

Contd.

- falsely representing any re-built, second hand, renovated, reconditioned or old goods as new goods;- falsely representing that the goods or services have a certain sponsorship or approval or affiliation, characteristics, accessories, use or benefits;

Contd.

- misleading representation concerning the need for, or the usefulness of any goods or services;- giving any warranty or guarantee of the performance of efficacy of the product without any proper test thereof.