Understanding "Goods" and "Services" in Consumer Law

In the realm of consumer protection law, the definitions of "goods" and "services" are as fundamental as the definition of a "consumer" itself. These terms delineate the scope of transactions that fall under the protective ambit of the law, making them crucial for anyone seeking consumer justice or defending against a complaint. India's Consumer Protection Act, 2019 (CPA 2019), building upon the foundations of the Consumer Protection Act, 1986, provides comprehensive definitions that encompass a vast array of modern-day transactions. For individuals and businesses in Kochi, Ernakulam, and across Kerala, understanding these nuanced definitions is key to effectively asserting their consumer rights and navigating the landscape of consumer disputes.

Adv :Raghesh Issac P

7/17/20256 min read

1. Decoding "Goods" Under the Consumer Protection Act

The term "goods" under the CPA 2019 refers to tangible, movable property that is bought for a consideration. The definition is broad and is largely aligned with the definition of "goods" under the Sale of Goods Act, 1930.

1.1. Definition: Section 2(20) of the CPA 2019 defines "goods" as "every kind of movable property and includes 'food' as defined in clause (jj) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006." It also clarifies that "goods" includes "any electronic records" and "any information" as defined in the Information Technology Act, 2000, where such records or information are offered for consideration.

1.2. Key Characteristics: 1.1. Movable Property: This is the primary characteristic. Goods are things that can be moved from one place to another. This excludes immovable properties like land or buildings, though disputes related to construction services on such properties fall under "services." 1.2. Consideration: Goods must be bought for a price (consideration). Free samples or gifts are generally not "goods" under the Act unless they are inextricably linked to a paid transaction. 1.3. Tangible (Mostly): While traditionally "goods" meant tangible items like electronics, vehicles, clothes, groceries, etc., the inclusion of "electronic records" and "information" broadens this to include certain intangible digital assets. 1.4. "Food" Inclusion: Explicitly including "food" (as defined by FSSA, 2006) clarifies that consumers can seek redressal for defective goods in the form of adulterated, unsafe, or substandard food products. This is a crucial aspect for public health and safety.

1.3. Examples of "Goods" in Consumer Law: 1.1. Consumer Electronics: Mobile phones, televisions, refrigerators, washing machines, laptops, air conditioners. 1.2. Automobiles: Cars, motorcycles, scooters, bicycles. 1.3. Household Items: Furniture, kitchenware, appliances, textiles. 1.4. Groceries and Food Products: Packaged foods, fresh produce, beverages, restaurant food (if purchased as a product for takeaway, though dining in primarily involves service). 1.5. Digital Products (under certain conditions): Software (if purchased as a distinct product, not a service subscription), e-books, music files, or other digital content that is "bought" for consideration and is a movable electronic record. This aspect is still evolving with judicial interpretation. 1.6. Jewellery, Apparel, Toys, Sports Equipment, etc.

1.4. Common Disputes Related to Goods: Defective Goods: The most common complaint, where the product is faulty, broken, or does not perform as warranted. Shortage in Quantity/Quality: Receiving less than what was paid for, or a product of inferior quality than promised. Misleading Advertisements: Goods not matching the claims made in advertisements. Unfair Trade Practices: Deceptive practices in selling goods, such as selling old goods as new, refusing returns for defective items.

2. Unpacking "Services" Under the Consumer Protection Act

The definition of "service" under the CPA 2019 is exceptionally broad and inclusive, reflecting the modern economy's heavy reliance on diverse services.

2.1. Definition: Section 2(42) of the CPA 2019 defines "service" as "service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding 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."

2.2. Key Characteristics: 1.1. Any Description: The phrase "service of any description" highlights the broad scope, encompassing virtually all types of activities performed for a client. 1.2. Made Available to Potential Users: It includes services offered generally, even if a specific individual has not yet availed them. 1.3. Consideration: Like goods, services must be availed for a price (consideration). Services rendered absolutely free of charge are generally excluded (e.g., free public medical aid, though private medical services, even if pro bono, if connected to a paid hospital setup might be debated). 1.4. Exclusion of "Contract of Personal Service": This is a critical exclusion. A "contract of personal service" implies a master-servant relationship (e.g., an employer-employee relationship). Disputes arising from employment contracts are outside the purview of the Consumer Act; they fall under labor laws. However, a "contract for service" (where a professional is engaged to provide a service) is covered.

2.3. Examples of "Services" in Consumer Law: 1.1. Financial Services: Banking services (account management, loans, credit cards, lockers), insurance services (processing insurance claims, selling policies, premium collection, claim repudiation), investment advice, stockbroking. 1.2. Healthcare Services: Medical treatment by doctors, hospitals, diagnostic labs, nursing homes. This is a significant area for medical negligence cases. 1.3. Telecommunication Services: Mobile network services, internet services, DTH services, landline services. 1.4. Housing and Real Estate:Construction services by builders, housing development, provision of amenities in residential societies, real estate agency services. Cases involving delays in possession or poor construction quality are common here. 1.5. Transport Services:Airlines, railways, bus services, taxi services (including app-based taxis). 1.6. Hospitality: Hotel bookings, restaurant services (dining in). 1.7. Education Services: Coaching classes, vocational training centers (disputes relate to deficiency in services promised, not generally for statutory universities/schools). 1.8. Utility Services: Supply of electricity, water, gas. 1.9. E-commerce Services: Services provided by online marketplaces (e.g., payment gateways, logistics, customer support related to the platform's service), though the goods themselves are separate. 1.10. Professional Services: Services rendered by lawyers, chartered accountants, architects (for a fee).

2.4. Common Disputes Related to Services: Deficiency in Service: The service is not performed with due diligence, competence, or within the agreed timeframe. This is the broadest category covering a multitude of issues. Unfair Trade Practices: Practices like overcharging for services, deceptive advertising of services, or imposing hidden charges. * Restrictive Trade Practices: Imposing undue restrictions on the consumer's choice or access to services.

3. The Interplay: Goods and Services in Composite Transactions

Many modern transactions involve a mix of both goods and services. The key is to determine the dominant element or if both are distinct components for which a separate grievance can arise.

3.1. Examples of Composite Transactions: Restaurant Dining: When you dine at a restaurant, you are consuming "goods" (food) and availing "services" (ambience, waiting staff, cooking, presentation). A complaint can arise from defective goods (bad food) or deficient service (poor service, unhygienic conditions). Vehicle Repair: You pay for a "service" (repair work) and potentially for "goods" (spare parts used). If the repair is faulty (deficient service) or the parts used are substandard (defective goods), a complaint can be filed. Software Installation: You might purchase software (goods) and then pay for its installation and support (services). Construction of a House: While the land is immovable, the "service" of constructing the house and the materials (goods) used therein are covered. Disputes typically fall under deficient services in housing construction.

The flexibility in defining both "goods" and "services" allows the Consumer Commissions to address the holistic nature of many consumer transactions.

4. Why These Definitions Matter for Consumer Justice

Understanding these definitions is fundamental for several reasons:

4.1. Determining Maintainability: The first step in any consumer dispute is to establish if the subject matter falls within the definitions of "goods" or "services" under the Act. If not, the complaint might be dismissed at the outset. 4.2. Identifying the Opposite Party: Clarifying whether it's a defect in goods or a deficiency in service helps identify the appropriate opposite party (manufacturer, seller, service provider). 4.3. Framing the Complaint: The nature of the grievance (defective goods vs. deficient service) dictates how the complaint should be framed, the specific legal provisions to be invoked, and the type of evidence required. 4.4. Claiming Appropriate Relief: The nature of the goods or services dictates the type of relief that can be sought (e.g., refund for goods, rectification for services, compensation for both). 4.5. Navigating Jurisdictions: For consumers in Kochi, Ernakulam, or other parts of Kerala, understanding these definitions helps in correctly approaching the District Consumer Commission, State Consumer Commission, or National Consumer Disputes Redressal Commission (NCDRC) based on the value and nature of the goods or services.

5. Role of Legal Professionals

While the Consumer Protection Act, 2019, aims for simplified redressal, the nuances of defining "goods" and "services" in complex or novel situations can be challenging. This is where a consumer protection lawyer or legal professional specializing in consumer law becomes invaluable. They can:

5.1. Advise on Applicability: Determine if your grievance truly falls within the definitions of "goods" or "services" under the Act. 5.2. Frame the Complaint: Draft a legally sound complaint that correctly articulates the nature of the "defective goods" or "deficient services." 5.3. Identify Liable Parties: Help pinpoint all responsible parties (manufacturer, seller, service provider) for the consumer dispute. 5.4. Navigate Complexities: Assist in cases involving emerging digital products/services or hybrid transactions where the distinction might be blurred.

Conclusion

The definitions of "goods" and "services" are the cornerstone of the Consumer Protection Act, 2019. They outline the vast expanse of transactions that are subject to consumer protection law in India. From the tangible items we buy daily to the myriad services that underpin our lives, the Act provides a powerful legal framework to ensure quality, fairness, and accountability. For consumers and businesses alike in Kochi, Ernakulam, and every corner of Kerala, a clear understanding of these definitions is not just academic; it is fundamental to effectively asserting consumer rights, resolving consumer disputes, and ultimately achieving consumer justice in the dynamic Indian marketplace.

Connect with me:

https://g.co/kgs/mPKwKkP

https://www.facebook.com/share/1B44BM51tW/

https://www.instagram.com/rprlegalnexus?igsh=bGFweWdpMjNkZ28x

linkedin.com/in/adv-raghesh-issac-p-226869b8

https://x.com/PIssac24903?t=f4pXaO91980uKNidGSa3Rg&s=09