InterContinental Hotels Group Faces Regulatory Talks Over Unfair Membership Terms, Similar Clauses Found at Marriott and Hilton

Deep News
04/08

On April 8, the Beijing Municipal Administration for Market Regulation announced that consumer associations from Beijing, Tianjin, and Hebei have jointly held talks with Six Continents Hotel Management (Shanghai) Co., Ltd., the domestic operator of international hotel group InterContinental Hotels Group PLC (IHG). The discussions addressed multiple clauses in IHG's membership program that allegedly infringe upon consumer rights, including provisions that exclude Chinese legal jurisdiction, compel Chinese consumers to pursue arbitration overseas, restrict collective consumer rights, allow arbitrary changes to contract terms, and disclaim responsibility for losses caused by the use of goods. Clear rectification requirements were put forward during the talks.

It was noted that Marriott and Hilton also maintain similar membership terms. In Marriott's Bonvoy Program Terms & Conditions, the company states that it provides no express or implied warranties or representations regarding the type, quality, or suitability of goods or services offered through the program or participating hotels. Regarding legal jurisdiction and choice of law, any disputes arising from the program or its rules must be resolved individually rather than through class action, and shall be governed by and interpreted under the laws of Maryland, USA, without regard to conflict of law principles. Claims or lawsuits related to the program or its rules may only be filed in state or federal courts located in Maryland, USA, which hold exclusive jurisdiction.

In the Hilton Honors Terms & Conditions, it is stated that the terms are interpreted and limited according to the laws of New York State, USA, excluding any other state laws that might apply due to choice of law or conflict of law rules. Claims may not be pursued as part of any class action. By joining the Hilton Honors program, members agree that all legal proceedings will take place in courts located in the Eastern District of Virginia, or if no federal court exists, in courts in Fairfax County, Virginia. The Hilton Honors program, materials, and other services and products are provided "as is," and to the fullest extent permitted by applicable law, Hilton expressly disclaims all express or implied warranties.

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