What are Goods?

Last updated on Jun 7, 2022

Goods include anything other than money, that is manufactured or produced for consumption by people(( Section 2(7), Sale of Goods Act, 1930)). As per the consumer protection law, goods refer to all movable property, including food.(( Section 2(21), Consumer Protection Act, 2019.)) Based on how a good is used, there are two types of goods:

  • Capital goods: Capital goods are used to produce other goods and services. For example, heavy machinery in a factory.
  • Consumer goods: Consumer goods are meant for direct consumption. In other words, consumer goods are not used for creating new goods.

Consumer protection laws apply to consumer goods and not capital goods(( Section 2(7)(i), Consumer Protection Act, 2019; Section 2(d)(i), Consumer Protection Act, 1986.)). An airplane may be a capital good when used by an airline company to provide the service of transportation, and it could be a consumer good when flown for personal pleasure. The Government controls the production and sale of capital goods in the public’s interest, for which it may even regulate or prohibit production of goods as needed. For example, petroleum production, sale and pricing(( Essential Commodities Act, 1955; Prevention of Black marketing And Maintenance of Supplies of Essential Commodities Act, 1980)).


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