Topic
Under the Consumer Protection Act, 2019, a 'consumer' is defined as a person who buys goods or hires services for consideration, excluding those purchased for commercial purpose or resale, unless used for livelihood.
A contractor buying steel pipes for a small construction job is deemed a consumer because the purchase was for self-employment, not a commercial enterprise. This broadens the CPA, 1986 definition of ‘consumer’ to include self-employed traders, extending statutory protection to them.
A purchaser who buys a shop room to run a self-employed business is deemed a consumer under Section 2(7) of the CPA 2019. This extends consumer-protection rights to small traders seeking livelihood premises, binding sellers to the Act.
The West Bengal State Consumer Disputes Redressal Commission held that a self-employed individual who financed a vehicle qualifies as a consumer under the CPA 1986, and that repossessing the vehicle without notice breaches service obligations. It awarded Rs 16.76 million in compensation, extending consumer protection to self-employed borrowers and making unlawful repossession actionable.
The West Bengal State Consumer Commission ruled that buying a commercial shop to sustain a livelihood falls under 'service' under the Consumer Protection Act, 1986. When sellers fail to deliver possession or execute conveyance, buyers are entitled to mandatory relief including physical handover, title transfer, and compensation for mental agony and financial loss - setting a critical precedent for small traders and entrepreneurs.
Delhi State Consumer Commission rules that machinery purchases for self-employment livelihood do not constitute 'commercial purpose' under the Consumer Protection Act, 2019. The ruling clarifies that small-scale entrepreneurs are protected as consumers, ensuring access to consumer forums for disputes.
Uttarakhand State Consumer Disputes Redressal Commission rules that individuals engaged in share trading for commercial gain do not qualify as 'consumers' under the Consumer Protection Act, 1986, stripping them of statutory protections. The ruling clarifies that profit-driven trading activities fall outside the Act's ambit, impacting investors and financial service providers.
Delhi State Consumer Commission rules that developers' failure to deliver possession is a continuing deficiency in service, extending limitation periods. The Commission also caps forfeiture of earnest money at 10% of the sale price, deeming higher deductions unreasonable under the Consumer Protection Act, 1986. This sets a precedent for homebuyers seeking relief against delayed projects and excessive penalties.
Delhi State Consumer Disputes Redressal Commission rules that a company insuring a commercial vehicle for livelihood purposes falls under the definition of 'consumer' under the Consumer Protection Act 2019. The Commission rejected insurer's attempt to deny claims based on mere suspicion of forged bills, reinforcing that valid claims cannot be dismissed without concrete evidence.
Supreme Court holds that leasing a residential flat does not automatically make buyer a non-consumer; burden lies on seller to prove dominant commercial purpose.