Unilaterally changing contract terms, iQiyi is in trouble again!
[2] Compiled from: Chengshi Interaction, The Paper
Case review
On January 31, a user in Guangdong sued iQIYI over restrictions on screen casting, and the Beijing Internet Court has recently accepted the case. The user stated that they are not seeking civil damages, but only require iQIYI to refrain from restricting screen casting resolution in any way during the membership period.
The user is a seven-year “loyal fan” of the iQIYI platform and has been an iQIYI member since 2017. Previously, when using the screen casting function, any resolution could be selected. However, on January 11, 2023, he discovered that iQIYI had limited the screen casting resolution for Gold VIP members to 480P, and that a higher-tier membership was required for higher resolution. He believes that iQIYI unilaterally changed the contract terms, which constitutes a breach of contract. The user stated that he is not seeking civil damages, but only requests that iQIYI not restrict screen casting resolution in any way during the membership term.
The issue of iQIYI restricting screen casting once sparked widespread discussion. Many netizens, like this user, discovered that when casting from the iQIYI app to a TV, the displayed image was very blurry, with a resolution of only 480P, and selecting a higher resolution required upgrading to a Platinum membership. Some netizens said: “I just paid for an annual membership, and originally 4K casting was no problem, but it was gone without notice.” At the time, iQIYI customer service stated that Gold members can use the service on computers, tablets, and mobile phones, and can cast at 480P resolution; if higher resolution casting is needed, one must upgrade to a Platinum membership or watch on the TV end.
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 altered the screen casting resolution during the contract performance period, which essentially constitutes a modification of the contract terms. Such high-handed unilateral modification not only harms the interests of the other contracting party but also violates the spirit of contract. Previously, iQIYI was sued for its unsightly "premium on-demand" practice, yet it failed to learn its lesson and remains bent on fleecing consumers. If this continues, how many people will still be willing to pay for iQIYI?
