Unilaterally changing contract terms, iQiyi is in trouble again!
[2] Compiled from: Chengshi Interaction, The Paper
Case review
[3] On January 31, a user in Guangdong sued iQIYI for restricting screen casting, and the Beijing Internet Court has recently filed the case. The user stated that they do not seek civil compensation, only that iQIYI does not restrict screen casting clarity in any way during the membership period.
[4] The user, a seven-year "loyal fan" of the iQIYI platform, has been an iQIYI member since 2017. Previously, any clarity level could be selected for screen casting, but on January 11, 2023, they found that iQIYI had limited the screen casting clarity for Gold VIP members to 480P, requiring an upgrade to a higher membership level for better clarity. They believe iQIYI unilaterally changed the contract terms, constituting a breach of contract. The user stated that they do not seek civil compensation, only that iQIYI does not restrict screen casting clarity in any way during the membership period.
[5] The restriction on iQIYI screen casting sparked heated discussion. Many netizens, like this user, found that casting from the iQIYI app to a TV resulted in blurry images, with clarity only at 480P, and selecting higher clarity required a Platinum membership. One netizen said: "I just renewed my annual membership, and 4K casting was fine before, but now it's gone without any prior notice." At the time, iQIYI customer service stated that Gold members could use the service on computers, tablets, and phones, and could cast at 480P clarity; for higher clarity casting, a Platinum membership or viewing on a TV was required.
Civil Code of the People's Republic of China
[6] Article 543
The parties may modify the contract upon mutual agreement.
Article 577
If a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear liability for breach of contract, such as continuing performance, taking remedial measures, or compensating for losses.
[1] The author's perspective
A contract lawfully formed is legally binding on the parties. The parties shall perform their contractual obligations in accordance with the agreement and may not arbitrarily alter or rescind the contract. Contract modification refers to a change in rights and obligations without altering the parties involved. The essence of contract modification is that the modified terms replace the original terms, creating new rights and obligations between the parties. Therefore, both parties to a contract may agree to modify the contract content through consultation. However, if one party unilaterally modifies the contract content, it constitutes a breach of contract by failing to perform the contractual obligations as agreed, and shall bear liability for breach of contract.
In this case, iQiyi unilaterally changed the screen casting clarity during the contract performance period, which essentially modified the contract content. This high-handed behavior of unilaterally altering terms not only harms the interests of the other party to the contract but also violates the spirit of the contract. Previously, iQiyi was taken to court for its unsightly "advance on-demand" practices. Yet, iQiyi has not learned its lesson and remains focused on squeezing money out of consumers. If this continues, how many people will still be willing to buy into iQiyi?
