How is commercial purpose determined under Consumer Protection Act.

Following principles can be culled out for determining whether an activity or transaction is ‘for a commercial purpose”, under the Consumer Protection Act.
1. The question of whether a transaction is for a commercial purpose would depend upon the facts and circumstances of each case. However, ordinarily, ‘commercial purpose’ is understood to include manufacturing/ industrial activity or business-to-business transactions between commercial entities.

2. The purchase of the good or service should have a close and direct nexus with a profit-generating activity.

3. The identity of the person making the purchase or the value of the transaction is not conclusive to the question of whether it is for a commercial purpose. It has to be seen whether the dominant intention or dominant purpose for the transaction was to facilitate some kind of profit generation for the purchaser and/ or their beneficiary.

4. If it is found that the dominant purpose behind purchasing the good or service was for the personal use and consumption of the purchaser and/or their beneficiary, or is otherwise not linked to any commercial activity, the question of whether such a purchase was for the purpose of ‘generating livelihood by means of self- employment’ need not be looked into.