Consumer Protection Act, 1986

Definitions of Important Terms

Before studying the provisions of the CPA, it is necessary to understand the terms used in the Act. Let us understand some of the more important definitions.

Complainant

This means:

  • A consumer; or
  • Any voluntary consumer association registered under the Companies Act, 1956 or under any other law for the time being in force; or
  • The Central Government or any State Government who or which makes a complaint; or
  • One or more consumers where there are numerous consumers having the same interest.

Complaint

Any allegation in writing made by a complainant that:

  • An unfair trade practice or a restricted trade practice has been adopted by any trader.
  • The goods bought by him or agreed to be bought by him suffer from one more defects.
  • The services hired or availed of or agreed to be hired or availed of by him suffer from deficiency in any respect.
  • The trader has charged for the goods mentioned in the complaint a price excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods.
  • Goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force, requiring traders to display information in regard to the contents, manner and effect of use of such goods; with a view to obtaining any relief provided by law under the CPA.

Consumer

This 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 (e.g. hire purchase or instalment sales) and includes any other user of such goods when such use is made with the approval of the buyer, but does not include a person who obtains such goods for resale or for any commercial purpose; or
  • Hires or avails of any services 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 beneficiary of such services when such services are availed of with the approval of the first-mentioned person.

For the purposes of this definition, "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood by means of self-employment.

Goods

This means goods as defined in the Sale of Goods Act, 1930. Under that Act, goods means every kind of movable property other than actionable claims and money and includes stocks and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Service

Service is defined to mean service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, 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.

Consumer dispute

This means a dispute where the person against whom a complaint has been made, denies or disputes the allegation contained in the complaint.

Restrictive trade practice

A restrictive trade practice means any trade practice which requires a consumer to buy, hire, or avail of any good or as the case may be, services as a condition precedent for buying, hiring or availing of any other goods or services.

Unfair trade practice

An unfair trade practice means unfair trade practice as defined under the Monopolies and Restrictive Trade Practices Act (MRTP). The MRTP Act has defined certain practices to be unfair trade practices.

Defect

This 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, express or implied, or as is claimed by the trade in any manner whatsoever in relation to any goods.

Deficiency

This means any fault, imperfection or shortcoming or inadequacy in the quality, nature and 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.