Business Software Buyers Not Consumers Under The Consumer Protection Act, 1986: Supreme Court

The Supreme Court held that companies purchasing software for running or enhancing their business operations do not fall within the definition of “consumer” under Section 2(1)(d) of the Consumer Protection Act, 1986, and therefore cannot maintain consumer complaints.

The Court observed that software procured to streamline commercial functions constitutes a purchase for a commercial purpose, which the statute expressly excludes from consumer protection. It clarified that only software acquired for personal or non-commercial use may qualify for consumer remedies.

Business entities alleging deficiencies in such commercial software transactions must approach civil courts or invoke contractual mechanisms instead of consumer forums.

[M/s Poly Medicure Ltd. v. M/s Brillio Technologies Pvt. Ltd.]