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WHILE deciding cases pertaining to defective goods, courts have always underscored the fact that the goods were brand new and, therefore, a certain quality of performance was expected of them. What if the product happens to be used or is second hand? What is the standard for such goods? A consumer buying a secondhand product may not be paying the price of a brand new product, but that does not mean that the product can be defective or unsafe or not fit for the purpose for which it was bought. However, in the absence of specific standards and laws for used goods, protection of the interests of customers who buy such goods becomes difficult. In fact in such cases, the quality will be determined more by the promises, if any, made by the seller. In the case of Byford Leasing Ltd vs S.V.R. Rao, for example, where the company advertised the sale of reconditioned cars with a six-month warranty, the court looked at whether the car in question was indeed reconditioned, and on the basis of the evidence placed before it, held that the claim was false. It, therefore, directed Byford to refund the cost of the car along with 12 per cent interest and pay Rs 10,000 as compensation. But what if the seller does not give any such guarantee? In fact in most cases, those who sell second hand goods do not provide any warranty or a guarantee. Consumers' International, which has been campaigning for the protection of clients who use second-hand goods and has been working with the International Organisation for Standardisation on this issue, emphasises that second hand shouldn't mean inferior or shoddy. Those buying second-hand products need even more protection than those buying new products. A used good should meet agreed health and safety standards. Potential buyers should also have access to clear product information so they can decide whether it is suitable for their needs. While such standards provide a yardstick against which one can measure the performance of used goods and are absolutely necessary, we also need to have specific laws for the regulation of secondhand goods market so that customers’ interests are protected. In New Zealand, for example, the rights of the persons buying secondhand goods are protected under the Consumer Guarantees Act, which says that such goods must be of acceptable quality. The definition of acceptable quality is that (a) the goods should be fit for the purpose they are made; (b) they should last for a reasonable time; (c) they should be free of minor defects; (d) should be acceptable in looks and finish; and (e) they should be safe. In some countries specific categories of used goods are regulated. In the UK, for example, anyone selling used electrical goods should ensure that these meet legal safety requirements. The requirements include labelling, construction, design and manufacture, insulation and earthing, protection from electric shock and instructions for safe use. Those who sell unsafe or incorrectly labelled electrical goods are liable to be prosecuted and punished with imprisonment and fine. In the US, the Federal Trade Commission enforces 'used car rule' to protect the interests of those who buy second hand cars. The rule, which covers all used car dealers in the country, stipulates that the dealers post a one-page buyers' guide or a disclosure document in every car. The disclosure document, which also specifies the warranty protection that the buyer is entitled to in case of a problem with the car, becomes a part of the sales contract and overrides any contrary provisions contained in the sales contract. The guide also urges clients to get in writing all the promises made by the dealer at the time of purchase. The fast rate of obsolescence, aggressive marketing of newer models and the availability of easy credit have all substantially changed the way Indians shop. Unlike before, today they are constantly giving up old models for new. This in turn has created a vast market in second hand goods and also a large class of people who buy such goods and, therefore, need to be protected. These goods may not be brand new, but they must satisfy the criteria of value for money. After all, even used goods do not come cheap, and those who buy them, too, have a right to a fair deal, besides other rights, such as the right to be protected against unsafe and hazardous goods, the right to choose, the right to information and the right to quality. So it is time we created adequate safeguards for their protection.
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