To Analyze The Scope of the term Consumer

SCOPE OF TERM CONSUMER

In ancient civilizations, market exchanges revolved around basic goods. Evolving over time it has come to embrace more complex transactions i.e. with the rise of industrialization and globalization. The consumers were primarily viewed as participants in local markets, engaging in direct exchanges of goods and services

Social and Cultural Expansion of the Aspect:

The shopping culture has come to be where people think “I shop therefore I am”

It is a phenomenon of contemporary society. In 1980’s situation was quite different as to it was the period when demand was exponentially greater than supply as a result the consumers were neglected. It was the period of seller’s market as there was lack of marketing as it was the consumer that kept coming to the seller.

With the development of strong consumer culture and the association of consumer with their identity lead people to spend more money i.e. it encouraged people to spend more. It is pertinent to note here that in such a consumer-oriented markets the consumers starting viewing consumption expenses as needs necessary for happiness, such as these perceived consumers need encouraged consumers to spend.Thus, consumer culture theory is a school of marketing philosophy that emphasizes the psychological effects of buying.

For keeping pace with such unique style of psychological impact on consumer, marketer tried to exploit such impact to promote their product’s sale. In this, the marketer/ economists relate their product to the social factors as well as consumer’s psychology factors and social factors i.e. common factors such as personality, attitude, motive, class, status, belief, value, ritual and so on.

This expansion has led to the erosion of principle of consumer sovereignty. Consumer sovereignty can be defined as the principle that consumers, through their purchasing decisions, determine the demand for goods and services, and therefore have a powerful influence on what is produced and how it is produced. Although the above market strategy of the marketer/ economist was based on the principle but the decision of the consumer was not free which is to say that it was influenced by some peer pressure or psychological pressure or something or the other which the seller exploited. The consumers were not freely willing to buy the goods and services rather they were forced to do so as the consumers exploited their psychological pressure and had a sort of control on their thinking which is not as much as today. With the advent of technology, it has come to be at its peak. With the evolution of technology, the firms have the data of the consumers, and they know what he wants, what he thinks, what are his preferences. They know the person more then himself with the data they gather through the personal device of the person which is through surveillance capitalism and the consumers are manipulated with the use of such data. They are tempted to buy the things by fascinating them with the use of data. Therefore, it is important to examine legal aspects of the term consumer along with social and cultural aspect.

Legal Scope and Expansion over time:

Since consumption was considered to be a basic and market exchanges revolved around basic goods there were plenitude of laws. Being a necessary activity to run life and economy; it was essential to have laws that define the consumption relationship between consumer and buyer. In spite of the plenitude of law, to defined the seller and buyer relationship, check the supply of inferior quality of goods, rate of profit incurred by the sellers and industry and to ensure to take care of the customers couldn’t be achieved and consumers interest couldn’t be prevented.

(i) 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.

The Consumer Protection Act 2019 has widened the scope of the definition of "consumer" to include persons who buy or avail of goods or services online or through electronic means which was not present in the Consumer Protection Act 1986. The 2019 Act defines the term ‘Consumer’ in context of services, as any person who hires any service for a consideration which has been paid, or has been promised to be paid, and it does not include a person who avails of such a service for any commercial purpose. It became necessary to include the amendment as the online sources were being used to exploit consumers and there being no law the liability was avoided. It is necessary to understand the commercial purpose and then the electronic means. So, let’s first understand the commercial purpose:

Commercial Purpose:

It has been expressly mentioned in the new Consumer Act that a person who hires any service for a commercial purpose is not considered a consumer. The term ‘commercial purpose’ was mentioned in the old Consumer Act only with respect to the goods. By the Amendment Act of 1993, an explanation was added to carve out an exception excluding goods bought and used exclusively for the purpose of earning livelihood, by means of self-employment from ‘commercial purpose’.

In Synco Textiles Private Limited v. Greaves Cotton and Co. Ltd.

Above definitions and meanings attributed to ‘commercial purpose’ are used in cases of services as well. Recently In an appeal against the order passed by the National Consumer Dispute Redressal Commission (‘NCDRC’), wherein the commission held that the commercial space booked by the complainants was for earning profit and not for the purpose of earning a livelihood by self-employment.

The Court further said that the expression ‘commercial purpose’ has not been defined under the Act. Thus, the words ‘for any commercial purpose’ must be understood as covering cases other than those of resale of the goods. Expansion of term Consumer in light of Case Laws:

In Anant Raj Agencies v. TELCO, I (1996) CPJ 268 (DELHI) , the company purchased a car that was used privately by the director. The car stopped working as it had serious defects. The complainant claimed a replacement or refund for the car. It was held that though the car was purchased by a company but it wasn’t used for commercial purpose rather was privately used by the director. Thus, the complainant was a consumer and the complaint was held admissible under Consumer Protection Act (CPA).

In Union of India v. Mrs. S. Prakash, it has been held that subscriber of a telephone is a consumer as rental charges paid to the Central Government as the consideration for the services provided by Tele-communication Department. Hence, the Consumer Forum has full authority to admit complaint on this matter.

Relevance and Scope of term Consumer in Technological Era:

“I want you to spend a lot to prove you love your family”

Market manipulations and unfair trade practices have been received by the consumers from time immemorial. Although the current act along with its amendments try to deal with every issue that a consumer might face but with the developing landscape today and in the era of the technology where surveillance capitalism prevails it has become important to update the norms as the consumers are being exploited without their knowledge with the use of technology. The companies are using their personal information that is gathered from their phones as data through different apps and websites people visit and where they give their consent to manipulative and arbitrary terms and conditions in social pressure or other things. To avoid all this and prevent the consumer in the true sense in the modern era it is necessary to safeguard them. This is probably a red signal to conman indulging in market practices that are unfair. Although CPA,2019 has shifted the load of accountability and care upon the sellers, manufacturers and service providers thereby assuring more power on the end of consumer. The act now has ensured a stringent law to protect the consumer from the neglect and low efficient service by the service provider or manufacturer. But still there is no law to deal with modern emerging ways, therefore it is important to further expand the scope and enhance the consumer experience. Because only when the consumer is strong only then will the country strive towards real success and economic growth.