Defect in Goods**

Meaning of Defect (Section 2(10))

Under the Consumer Protection Act, 2019, a consumer can file a complaint concerning a problem with goods if there is a 'defect'. The Act provides a specific definition for what constitutes a defect in relation to goods.

As defined in **Section 2(10)** of the Consumer Protection Act, 2019, defect means any fault, imperfection or shortcoming in the **quality, quantity, potency, purity or standard** which is required to be maintained by or under any law for the time being in force or under any contract, express or implied, or as is claimed by the trader in any manner whatsoever in relation to any goods.

This definition is broad and covers various issues that can render a product problematic for the consumer. The yellow subheadings below represent specific examples or aspects of what can fall under this definition or are treated similarly in practice.

Manufacturing defect

A **manufacturing defect** is a flaw that occurs during the production process. It means the product did not conform to its intended design or specifications as a result of an error in manufacturing, assembly, or production. Such defects often affect only a portion of the manufactured units, rather than the entire product line.

For example, a car where the brakes were improperly installed on the assembly line, a mobile phone with a faulty battery due to an error in production, or a piece of furniture with a joint that wasn't correctly fixed during manufacturing are all examples of manufacturing defects. These are clear faults or imperfections in the quality or standard of the good as it was intended to be produced.

Under the product liability provisions of the 2019 Act (Section 84), a product manufacturer can be held liable for harm caused by a product with a manufacturing defect even if they were not negligent, provided the defect was present when the product left their control.

Faulty design

A **faulty design** refers to a flaw inherent in the blueprint or plan of the product itself, rather than an error in its execution during manufacturing. If the design is flawed, every unit produced according to that design will potentially have the same issue, rendering the entire product line defective in design.

For example, a ladder designed in such a way that it is inherently unstable and likely to tip over, a medical device designed with a fundamental flaw that makes its use risky, or a vehicle model where the placement of a component leads to a high risk of fire are instances of faulty design. This is a shortcoming in the standard or quality of the product as conceptualised.

A product manufacturer can be held liable for harm caused by a product with a design defect under Section 84 of the Act, if the foreseeable risks of harm could have been reduced or avoided by the adoption of a reasonable alternative design, and the omission of the alternative design renders the product not reasonably safe.

Substandard material

Using **substandard materials** in the manufacturing of goods, when the product is supposed to meet certain quality standards or claims, constitutes a defect. The materials used are an intrinsic part of the product's quality, purity, or standard.

For example, furniture made from low-quality wood that is prone to breaking easily when advertised as durable hardwood furniture, electronic components made with cheap or inferior conductors leading to malfunctions, or food items made with ingredients below the required grade are instances where the use of substandard material results in a defect in the good.

This directly violates the expectation that the quality or standard promised or legally required is met, fitting squarely within the definition of a defect.

Failure to carry out repairs

While primarily related to services (deficiency in repair service), the **failure by the seller or manufacturer to carry out promised repairs** for a defective product can also be a ground for complaint under the Consumer Protection Act. If a product is sold with a warranty or guarantee that includes free repairs for defects within a certain period, the seller/manufacturer is contractually obligated to perform these repairs. Their failure to do so constitutes a deficiency in service (the service being the repair service promised). However, since the underlying issue stems from a problem with the goods, the consumer's complaint might be framed around both the defect in the goods and the deficiency in the associated service.

Moreover, if the defect in the goods persists because repairs are not carried out properly or at all within a reasonable time, the continued presence of the defect allows the consumer to seek remedies like replacement of the goods or refund of the price, in addition to compensation for the deficient service.

Not conforming to the expressed warranty or guarantee

When a seller or manufacturer provides an **express warranty or guarantee** regarding the quality, performance, or durability of goods, the goods **must conform** to these promises. If they fail to do so, it is considered a defect because the goods do not meet the standard or quality claimed by the trader in any manner whatsoever (which includes through warranties/guarantees).

For example, if a laptop is sold with a warranty that the battery will last for 8 hours on a single charge, but it only lasts for 2 hours, this non-conformity with the express warranty constitutes a defect. Similarly, if a product is guaranteed against rust for 5 years, but starts rusting within a year, it is defective in relation to the guarantee.

The consumer has a right to expect that express warranties and guarantees are honoured, and failure to meet them provides a clear basis for a complaint.

Presence of a hazardous substance

If goods contain a **hazardous substance** that makes them unsafe for use, especially when such a substance is not disclosed or exceeds permissible limits, this constitutes a defect. This relates directly to the purity and standard of the goods and is a violation of the consumer's **Right to Safety**.

For example, toys containing lead paint above safety limits, food products containing harmful additives or contaminants, or cosmetics with ingredients that cause severe allergic reactions or long-term health damage when used as intended are all considered defective due to the presence of hazardous substances. Such goods do not meet the standard required by law (safety standards) or are otherwise hazardous to life and property.

Under product liability, a product manufacturer can be held liable for harm caused by a product that is defective because of inadequate instructions or warnings, or because it did not conform to the express warranty or was not used as intended (Section 84). The presence of a hidden hazardous substance makes the product unsafe even if used as intended, linking it to the defect definition and product liability.

In summary, a defect in goods under the Act is a broad term covering flaws in manufacturing, design, materials, non-conformity with claims/standards (including warranties), and the presence of hazardous elements, providing consumers with a legal basis for complaint when products fail to meet expected standards of quality and safety.

Deficiency in Services**

Meaning of Deficiency (Section 2(11))

Under the Consumer Protection Act, 2019, a consumer can file a complaint regarding issues with a service they have hired or availed of if there is a 'deficiency'. The Act provides a clear definition for what constitutes a deficiency in relation to services.

As defined in **Section 2(11)** of the Consumer Protection Act, 2019, deficiency means any fault, imperfection, shortcoming or inadequacy in the **quality, nature and manner of performance** which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

This definition covers various failures or shortcomings in the standard and performance of services promised or expected. The yellow subheadings below highlight key aspects covered by this definition.

Faulty, imperfect, incomplete or unsatisfactory service

This is the core of the definition, referring to instances where the service provided is below the expected standard. This could mean:

**Faulty:** The service is performed incorrectly or contains errors (e.g., incorrect calculations by a bank, a wrongly drafted legal document).
**Imperfect:** The service has flaws or is substandard in quality (e.g., a poorly executed repair job, a haircut that is uneven or not as requested).
**Incomplete:** The service agreed upon is not fully delivered (e.g., only partial cleaning of a property, missing components in a service package).
**Unsatisfactory:** The service does not meet the reasonable expectations of the consumer regarding its quality or outcome, based on what was promised or the general standard for that type of service.

These terms describe the fault, imperfection, shortcoming or inadequacy in the quality, nature, and manner of performance of the service.

Lack of skill or efficiency

While not explicitly stated as separate points in the definition, the phrase "inadequacy in the quality, nature and manner of performance" encompasses situations where the service provider lacks the necessary **skill** or **efficiency** required to render the service properly. This is particularly relevant for professional services.

**Lack of Skill:** The service provider does not possess the competence or expertise expected for that service (e.g., a doctor performing a procedure they are not trained for, a mechanic attempting a complex repair without proper knowledge).
**Lack of Efficiency:** The service is not performed effectively, resulting in delays, waste, or poor outcomes, even if the skill is present (e.g., a slow and cumbersome banking process, inefficient handling of customer queries).

In professional services (like medical, legal, architectural), the standard of performance is often judged based on the care and skill expected from a reasonably competent person in that profession. Failure to meet this standard due to lack of skill or efficiency constitutes a deficiency.

Failure to render service as per contract

A significant ground for alleging deficiency is the failure of the service provider to perform the service as **undertaken to be performed by a person in pursuance of a contract or otherwise**. This refers to the terms and conditions agreed upon between the consumer and the service provider, whether written or oral.

If the service provider fails to deliver the service within the agreed timeframe, or provides a different service than agreed upon, or fails to adhere to the promised specifications or terms, it constitutes a deficiency.
"Or otherwise" implies that even in the absence of a formal written contract, if there was an understanding or representation regarding the service, failure to meet that understanding can lead to a finding of deficiency.

For example, a travel agency failing to provide the hotel accommodation promised in a package, a coaching institute not providing the number of classes or facilities as advertised, or a broadband provider not delivering the promised internet speed are all cases of deficiency due to failure to perform as per the contract or undertaking.

In essence, a deficiency in service is any failure to meet the expected or promised standard of service performance, encompassing issues of quality, completeness, skill, efficiency, and adherence to contractual terms.

Examples of Deficiency in Service

The broad definition of 'deficiency' coupled with the inclusive definition of 'service' means that a wide range of issues across various sectors can be considered deficiencies under the Consumer Protection Act, 2019. Here are some illustrative examples from common service sectors:

Banking services

Banking services fall explicitly under the definition of 'service' in Section 2(42). Deficiency in banking services can include:

**Unreasonable delay** in processing loans or account operations.
**Charging excess interest or fees** beyond the agreed terms or regulatory guidelines.
**Errors in account statements** or transactions.
**Failure to honour cheques** without valid reasons.
**Deficiency in ATM services** (e.g., cash not dispensed but account debited).
**Mismanagement of locker facilities**.
**Lack of proper customer service** or failure to resolve complaints promptly.
**Sharing customer information** without consent.

Transport services

Transport services are also included in the definition. Deficiency in transport can include:

**Unreasonable delays** in train, bus, or flight schedules without proper intimation or compensation (beyond normal operational delays).
**Loss or damage to luggage** during transit.
**Failure to provide promised facilities** in the mode of transport (e.g., non-functional AC in a reserved coach, lack of promised amenities).
**Overcharging** on fares or freight.
**Cancellation of tickets/bookings** without proper refund or alternative arrangements.
**Poor quality of service** by staff (e.g., rude behaviour, lack of assistance).

Medical services

Medical services, including those provided by hospitals and doctors, are considered 'services' under the Act when availed for consideration. Deficiency in medical services is often referred to as **medical negligence**.

**Lack of reasonable care and skill** expected from a medical professional of similar standing (e.g., wrong diagnosis, incorrect treatment, surgical errors, administering wrong medication).
**Failure to obtain informed consent** before a procedure (in certain circumstances).
**Negligence by hospital staff** (e.g., improper post-operative care, hospital-acquired infections due to poor hygiene).
**Deficiency in facilities** promised by a hospital (e.g., non-functional equipment, lack of necessary staff).
**Charging exorbitant fees** for inadequate or unnecessary treatment.

Determining medical negligence requires assessing whether the standard of care expected was met, often involving expert medical opinion.

Housing construction services

Housing construction by builders or developers is a significant area covered as a 'service' under the Act. Deficiency in housing construction can include:

**Unreasonable delay** in handing over possession of the constructed property beyond the promised date.
**Construction defects** (e.g., poor quality materials, structural issues, leakage, cracks, substandard fittings).
**Failure to provide promised amenities** or facilities (e.g., swimming pool, park, club house not built or functional).
**Deviations from the approved building plan** without the buyer's consent.
**Failure to obtain necessary completion or occupancy certificates**.
**Charging excess amounts** not agreed upon.
**Deficiency in services** related to maintenance or common areas after possession is handed over.

These examples illustrate how deficiencies can arise from various failures in the quality, timeliness, or performance of a service, allowing consumers to seek appropriate remedies under the Act.