The definition given under the Consumer Protection Act, 1986 gives altogether a new legal colour and scope to the term 'Consumer'. In the light of this statement, explain the term 'Consumer'.

Defining ‘Consumer’ – A Traditional View

Prior to 1986, the understanding of a ‘consumer’ was largely limited to a person who buys goods or services for direct consumption. This definition excluded individuals who benefited from goods or services purchased by others or those who used goods with the owner’s permission. The legal framework lacked specific provisions to address the grievances of such individuals.

The Consumer Protection Act, 1986 – A Landmark Definition

The Consumer Protection Act, 1986, defined a ‘consumer’ as 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.
• Uses any services for a consideration which has been paid or promised or partly paid or partly promised, or under any system of deferred payment.

Crucially, the Act also included:

• Any beneficiary of such goods or services who uses them with the approval of the purchaser.
• Any person who obtains goods on loan or hire-purchase system.

The ‘New Legal Colour and Scope’

The 1986 Act significantly broadened the scope of the term ‘consumer’ in several ways:

1. Inclusion of Service Users:

The Act explicitly included users of ‘services’ within the definition of a consumer. This was a significant departure from previous understandings, as services like banking, insurance, medical care, and transportation were now covered under consumer protection laws. For example, a patient receiving medical treatment is considered a consumer of medical services.

2. Beneficiaries of Goods and Services:

The inclusion of beneficiaries who use goods or services with the purchaser’s approval was a novel aspect. This meant that family members using a purchased television or a guest staying in a hotel (with the room booked by another) could also be considered consumers.

3. Expanding Consideration:

The definition of ‘consideration’ was broadened to include not only monetary payment but also any form of valuable consideration. This included barter, gifts, and even promises of future payment.

4. Addressing Unfair Trade Practices:

The Act empowered consumers to seek redressal against unfair trade practices, restrictive trade practices, and deficient services. This provided a legal recourse for consumers who were exploited or misled by businesses.

Illustrative Examples

Consider these scenarios:

• A family member using a car purchased by another – the family member is a consumer.
• A patient receiving treatment at a hospital – the patient is a consumer of medical services.
• A person using a mobile phone connection purchased by their employer – the person is a consumer.

The 2019 amendment to the Consumer Protection Act further refined the definition and introduced new provisions to address emerging challenges in the digital marketplace.