News

As the National Day and Mid-Autumn Day approach, many hotels have increased their price tags for rooms, some even cancelled previously signed contracts or asked the consumer for extra charge. This has drawn concerns from consumers. Recently, JAVY’s partner Wei Wei Esq. talked on this issue when interviewed by the CCTV.

As Ms. Wei pointed out, it is illegal for hotels to increase the price after the consumer has already booked the room, because the contract has been established between the two parties, the service provider must perform its obligations pursuant to the terms of the contract.

If the hotel asks the consumer for extra charge, the action will be considered breach of contract, the consumer has the rights to claim restitution. If the case involves consumer fraud, the consumer may be entitled to treble damages, pursuant to Chinese consumer protection law.

However, if there is no prior contract, the hotel is free to adjust its price tags, but this is not without limitations. For example, the price should be clearly marked, the act of price hiking is forbidden, and the price should also match the actual service rendered.

Ms. Wei also mentioned a new regulation released in February which set the standards for homestays, the requirements for the lowest tier homestays include clean & tidy environment, essential furniture in rooms, hot & cold water in washrooms, disinfection facilities in kitchens, and the bed linen must be replaced after each guest checkout.

If the homestay operator has failed to meet the minimum standards, the consumer has the rights to ask for refund, or request to replace & repair. If there is consumer fraud involved, they can also claim treble damages pursuant to consumer protection law, Ms. Wei said.

Wei Wei Esq. 

Partner

Ms. Wei graduated from Shanghai University of International Business and Economics with a master’s degree of Economic Law. 

Specialized areas: Dispute Resolution, Banking & Financial Law, Compliance, Business Arbitration & Mediation. 

Notable Clients:  

· China Huadian Water Affairs Co., Ltd.; 

· Huaji Asset Management Joint-Stock Company; 

· Minzu Securities Co., Ltd.; 

· Founder Securities Co., Ltd.; 

· Minsheng Bank;

· Baoshang Bank;

· Yingda Media Group;

· Rongze (Shanghai) Finance Lease Co., Ltd.; 

· Zhongmei Healthcare Group; 

…and many more.