DRAWING PARALLELS: CONSUMER PROTECTION ACT, 1986, LOCUS STANDI WITH REGARDS TO COMMERCIAL PURPOSE AND EARNING LIVELIHOOD BY MEANS OF SELF-EMPLOYMENT
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https://doi.org/10.55662/Abstract
The Consumer Protection Act, 1986 was passed to promote and protect the rights of the customers with the intent of providing the consumers with the right to seek redressal for the grievances suffered by him. The act went to define in codification the various terminologies which were previously left undefined and subjected to matters of perception in cases of consumer grievances.
The problem so arises when on one hand, a consumer, by definition as per Section 2(1)(d), does not include a person who buys goods or uses services for the commercial purpose but on the other hand includes person who uses such goods or avails such services for the purpose of earning his livelihood through self-employment.
There is a very thin line, if any, that distinguishes use of goods/services for commercial purpose and use of goods/services for the purpose of earning livelihood through self-employment. It can be very well argued that any use of goods/services for commercial purpose effectively implies use of goods/services for the purpose of earning livelihood through self-employment. This susceptibility of interpretation of the two rules might lead to some grievances going un-redressed.
The aim of this paper is to differentiate between the application of the two rules and seek clarification through a series of case analysis and commentaries regarding the scenarios where: -
- One qualifies as a consumer with respect to use of goods/services for the purpose of earning livelihood through self-employment.
- What nature of business when carried out comes under the purview of Commercial Purpose.
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