Consumer Protection Act

Goods under Consumer Protection Law: Meaning, the Sale of Goods Act Link, and Disputes about Goods

Half the Act runs on the word goods: the consumer buys them, defects afflict them, traders sell them, product liability compensates harm from them. The 2019 Act defines the word by borrowing the Sale of Goods Act's classical definition and adding food to it. This note sets out the definition, unpacks the borrowed elements, marks what is in and what is out, and surveys the situations in which goods become the subject of a consumer dispute.

1. The Definition and Its Source

Section 2(21), Consumer Protection Act, 2019, read with Section 2(7), Sale of Goods Act, 1930

Section 2(21), CPA 2019: 'goods' means every kind of movable property and includes 'food' as defined in clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006.

Section 2(7), Sale of Goods Act, 1930: 'goods' means every kind of movable property other than actionable claims and money; and includes stock 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.

The 1986 Act had defined goods simply as goods under the Sale of Goods Act; the 2019 definition states the core itself, every kind of movable property, and expressly annexes food. The Sale of Goods Act remains the interpretative hinterland: its exclusions (actionable claims, money) and inclusions (stock and shares, growing crops, severable attachments) travel with the concept, and its regime of implied conditions and warranties, quality, fitness for purpose, correspondence with description and sample, supplies the standards whose breach is a 'defect'. Notably, the 2019 definition, unlike some earlier drafts, does not exclude second-hand goods: a used car sold by a dealer is goods, and its misdescription actionable.

2. What Counts as Goods

  • Movables of every kind: vehicles, appliances, electronics, medicines, cement and building materials, seeds and fertilisers (the staple of agrarian consumer litigation), gas cylinders, jewellery, books, animals.
  • Food, expressly: by the FSSA definition, any substance intended for human consumption, including primary produce (in defined respects), water used in food, and articles that enter food, aligning consumer remedies with food-safety standards.
  • Electricity and energy: treated as goods capable of supply (the general law recognises electricity as movable property), while its supply to a consumer is equally a 'service' under Section 2(42); complaints about billing and disconnection have travelled comfortably as deficiency of service, subject to the special mechanisms of the Electricity Act, 2003.
  • Software and digital content: canned, off-the-shelf software has been held to be 'goods' (Tata Consultancy Services v. State of Andhra Pradesh, (2005) 1 SCC 308, in the sales-tax context), and the Act's e-commerce definition speaks of 'digital products'; bespoke development is better analysed as a service.
  • Stock and shares: goods by the borrowed definition once allotted; but an applicant for shares is not yet a buyer of goods (Morgan Stanley Mutual Fund v. Kartick Das, (1994) 4 SCC 225).

Outside the concept lie immovable property (land, and buildings as such: the flat purchaser's remedy lies against housing construction as a service, not goods), actionable claims and money, and pure intangibles not amounting to property. The gate matters mainly for choosing the correct ground: defect for goods, deficiency for services, with composite transactions (goods supplied and installed, equipment with maintenance) supporting both.

3. When Goods Become a Consumer Dispute

Goods enter the Commissions through five statutory doors:

  1. Defect (Section 2(10)): any fault or shortcoming in quality, quantity, potency, purity or standard required by law (BIS standards, Legal Metrology, drug and food standards), by contract, or by the trader's own claim, express or implied. The complaint under Section 2(6)(b) covers goods bought or agreed to be bought; Section 38(2)(c) equips the Commission to send samples for laboratory analysis or test where the defect cannot be determined without it.
  2. Overcharging (Section 2(6)(d)): selling above the statutory price, the MRP displayed on the package, the exhibited price list, or the agreed price.
  3. Hazardous goods (Section 2(6)(e)): offering goods hazardous to life and safety in breach of standards, or with knowledge of danger, linking to the CCPA's recall power and the safety right in Section 2(9).
  4. Unfair and restrictive practices about goods (Section 2(6)(a)): false representations of standard or quality, misleading advertisements of goods, refusal to issue a bill or to take back defective goods within thirty days, tie-in sales and supply manipulation.
  5. Product liability (Chapter VI): where a defective product causes harm, injury, death, property damage, the product manufacturer, seller or service provider answers in a product liability action, the 2019 Act's decisive addition for goods-related harm.

The corresponding reliefs under Section 39 track the doors: removal of the defect, replacement with new goods free of defects, refund of price, compensation for loss or injury, withdrawal of hazardous goods from sale and cessation of their manufacture, discontinuance of the offending practice, and costs. For spurious goods, goods falsely claimed to be genuine, the Act adds penal consequences and licence action in the offences chapter.

⚠ Key point

Read the definition as borrowed core plus one addition: every kind of movable property, with the Sale of Goods Act's exclusions (actionable claims, money) and inclusions (shares, crops, severables) intact, plus food by express words. The classification question, goods or service, decides only the ground (defect or deficiency); the Act's reliefs, and since 2019 the product liability chapter, stand behind goods at every point from price to safety.

4. Related Topics and Provisions

  • Service under Section 2(42): the companion concept, next in the series
  • Defect and deficiency (Topic 4): the parallel standards for goods and services
  • Complaint and its grounds (Topic 8): the five doors in their procedural frame
  • Product liability (Chapter VI): harm from defective products, in its own note
  • Spurious goods and offences (Sections 88 to 93): the penal edge