Companies Using Software for Business Efficiency, Not Consumer, Under The Act: Supreme Court

The Supreme Court held that a company purchasing software to manage or automate its business operations is not a “consumer” under Section 2(1)(d) of the Consumer Protection Act, 1986.

The case arose from a complaint alleging software malfunction, but the Court found that the program was used for export documentation, consignment tracking, foreign exchange management and statutory compliance, all directly linked to the company’s commercial activities.

The Bench ruled that such software is acquired for a commercial purpose and therefore falls outside the consumer definition. Since the dominant purpose was to enhance business efficiency, the company could not claim consumer rights.

[Poly Medicure Ltd v Vembu Technologies Pvt Ltd]