On February 11, concerning issues of potentially unfair standard terms in H World Group's membership service agreement, the Beijing Consumer Association acted in accordance with legal provisions. Citing Article 40 of China's Consumer Rights Protection Law Implementation Regulations, which empowers consumer associations to investigate consumer complaints, verify information with businesses, and request their presence to present facts and evidence, the Beijing Consumer Association summoned the operator, Hanting Xingkong (Shanghai) Hotel Management Co., Ltd. The association clearly pointed out that certain clauses in the company's agreement appeared to exclude or restrict key consumer rights, thereby harming consumers' legitimate interests. It demanded that the company conduct a comprehensive self-inspection and implement corrective measures within a specified timeframe.
The issue of "forced arbitration" was identified as a key restriction on consumer rights. The Beijing Consumer Association's investigation found that Article 11, Section 2 of the "H World Group Personal Membership Plan and Service Terms," set to take effect on July 18, 2025, contained problematic wording. The clause, stating that "if negotiation fails, you agree to submit the dispute to the Shanghai Arbitration Commission for arbitration according to its rules," was deemed an unreasonable restriction of consumers' primary rights through standard terms, potentially infringing upon their legal interests. By unilaterally mandating that disputes be resolved solely through the Shanghai Arbitration Commission, the terms deprive consumers of their right to file a lawsuit in a People's Court as provided under China's Civil Procedure Law.
This practice of "binding" consumers to a specific arbitration institution via standard terms restricts their avenues for seeking redress, increases their burden, and falls under the prohibitions outlined in Article 17 of the Consumer Rights Protection Law Implementation Regulations. Such clauses are considered invalid as they unreasonably limit consumers' legal rights to choose litigation or arbitration for dispute resolution.
The Beijing Consumer Association set forth three specific corrective requirements and emphasized follow-up supervision. Noting that such terms not only limit legal recourse for consumers but also disrupt a fair market trading environment, the association demanded that H World Group prioritize consumer rights protection. The three requirements are: First, immediately amend the standard terms. Within 10 working days after the summons, the company must delete or modify the forced arbitration clause and must not use standard terms to restrict consumers' legal options for resolving disputes. Second, conduct a comprehensive review of all existing agreements. The company must systematically examine all consumer-facing standard contracts, agreements, and notices to ensure full compliance with relevant laws and regulations, and completely eliminate any content that excludes or restricts consumer rights. Third, establish a communication mechanism for consumer rights. The company is advised to set up regular channels for interaction with consumers to collect feedback periodically. Before formulating or revising any rules impacting consumer rights, it should proactively seek opinions from consumers and consumer associations to safeguard their right to know and participate.
This corrective action is seen as having exemplary significance for standardizing industry practices. The Beijing Consumer Association urged H World Group to deeply recognize the problem, standardize its operations through concrete actions, and integrate respect for consumer rights into its corporate development to jointly promote the healthy and orderly growth of the accommodation service industry. The association will continue to monitor the implementation of the rectification measures, pushing the company to fulfill its primary responsibility for protecting consumer rights and helping to create a safe and reassuring consumption environment. Should the company fail to complete the required corrections on time, the Beijing Consumer Association will take further actions in accordance with the law, which may include public criticism, transferring relevant information to administrative authorities, or initiating public interest litigation, to resolutely protect consumers' legitimate rights from infringement.