Business Regulations & Control, Who is consumer?, What is defects in goods & deficiency in services?, What are unfair trade practice? by IMDR, Pune students.
2. Who is a “CONSUMER”
Consumer means any person who -
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 or 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
I.M.D.R. Pune
3. Example –
Ankit purchases bike for himself.
Dad buying a family pack ice cream and whole family consumes it.
Does not include a person who avails of such services for any
commercial purpose
Following points will make the definition more clear
Consideration-
◦ Consumer is a person who buys goods or hires services for consideration.
◦ If goods are given out free of charge, the receiver of goods is not a
consumer and cannot file any complaint in consumer court.
◦ If the goods are given as gift or distributed free of charge as sample or
promotion, the recipient is not a consumer.
I.M.D.R. Pune
4. User of goods/services with approval –
Any person who actually uses the goods or services with the approval of
such buyer is also a consumer and is hence entitled to all the reliefs
which are available to buyer or hirer.
Commercial purpose -
◦ A person who obtains goods for resale or commercial purpose is not
a consumer.
◦ Commercial purpose does not include use by a person of goods
bought and used by him and services availed by him exclusively for
the purposes of earning his livelihood by means of self employment.
◦ E.g. Taxi driver, Xerox machine.
I.M.D.R. Pune
5. Defects in Goods
Defect means any fault, imperfection or
shortcoming in the quality, quantity, potency, purity
or standard which is required to be maintained by
or under any law for the time being in force or
under any contract, expressed or implied, or as is
claimed by the trader in any manner whatsoever in
relation to any goods.
E.g. Note book, TV, Gas cylinder.
I.M.D.R. Pune
6. Deficiency in Services
Deficiency means any fault, imperfection,
shortcoming or inadequacy in the quality, nature &
manner of performance which is required to be
maintained by or under any law for the time being
in force or has been undertaken to be performed
by a person in pursuance of a contract or otherwise
in relation to any service.
E.g. Ac bus service, Tour package, Movies.
I.M.D.R. Pune
7. Unfair Trade Practice
Unfair trade practice means a trade practice
which for the purpose of promoting the
sales, use or supply of any goods or for the
provision of any service, adopts any unfair
method or unfair or deceptive practice.
I.M.D.R. Pune
8. Practices
1. Making any statement whether oral or written or by visible
representation which falsely represent goods/Services –
- Standard, quality, quantity, grade, composition, style or model.
- Rebuilt, 2nd Hand, renovated, old as new.
- Sponsorship, Approval, Benefits etc.
- False or misleading representation of need.
- Warranty/Guarantee of performance not based on adequate tests.
- Misleading warranty/guarantee/promise on achieved results.
- Misleading or false facts disparaging another’s goods/services.
I.M.D.R. Pune
9. Contd..
2. Permits advertising a product or service at a bargained price.
3. Offering gifts, prizes or other items as free of charge when it is
fully or partly covered in the whole amount charged.
4.Witholding the final results of any scheme from its participants.
5. Permitting sale or supply of goods likely to be used by
consumers, knowing that goods do not comply with the standards
prescribed by competent authority.
6. Hoarding or destruction or refusal to sell of goods.
7. Manufacturing/Offering spurious goods or adopting deceptive
practices in the provision of services.
I.M.D.R. Pune