Consumer Associations in Beijing-Tianjin-Hebei Region Jointly Interview “InterContinental Hotels Group”

On April 8, consumer associations from Beijing, Tianjin, and Hebei jointly interviewed the domestic operator of InterContinental Hotels Group (IHG) — Six Continents Hotel Management (Shanghai) Co., Ltd. The associations raised clear rectification demands regarding multiple clauses in IHG’s loyalty program, “IHG One Rewards Terms & Conditions” (hereinafter referred to as the “Terms”), which are suspected of infringing upon consumers’ legitimate rights and interests. These clauses include excluding Chinese legal jurisdiction, forcing Chinese consumers into overseas arbitration, restricting consumers’ collective rights protection, allowing unilateral changes to contract terms, and disclaiming liability for losses caused by the use of products.

An investigation found that IHG’s Terms, present on its website and app, contain several items suspected of infringing upon consumers’ rights. First, they enforce arbitration, exclude litigation options and the application of Chinese law, thereby depriving consumers of collective rights protection. The Terms mandate that their interpretation and enforcement are governed by the laws of the State of Georgia, USA, and that any disputes not subject to arbitration can only be filed in courts within that state. Second, they infringe upon consumers’ core rights such as the right to choose, fair trade, and compensation. The Terms state that IHG has the right to unilaterally modify or cancel any part of the loyalty program at any time, while unilaterally and implicitly presuming that a member’s “continued membership” constitutes acceptance of all updates. This essentially shifts the entire responsibility for monitoring and understanding changes to the standard terms onto the consumer.

The consumer associations pointed out that the aforementioned provisions exclude Chinese legal jurisdiction and restrict consumers’ convenient and efficient access to legal remedies. According to law, such clauses should be deemed invalid. Furthermore, the “unilateral change + implied consent” model, along with overly broad disclaimers, creates a clear imbalance in the setting of rights and obligations. They unilaterally increase consumer responsibility and inappropriately exempt the operator from its statutory liabilities. These related clauses should also be recognized as invalid.

In response to these issues, the consumer associations presented clear rectification requirements on-site to Six Continents Hotel Management (Shanghai) Co., Ltd., demanding a comprehensive review and revision of the membership terms within a specified time limit.