China’s Consumer Council has proposed the adoption of fair terms in standard form consumer contracts, plus implementation of cooling-off period after contracts are signed. The recommendation comes in the wake of a big jump in consumer complaints about unfair contract terms, underscoring the need to increase consumer protection. The council received 1,185 complaints regarding unfair contract terms during 2011 — a 27 percent increase over 2010. The complaints cover a variety of issues including automatic renewal, difficulties over attempts to terminate contracts, unilateral contract changes by vendors and providers, and companies reserving the right to render final judgment when there are disputes with consumers. The Consumer Council released a report titled “Unfair Terms in Standard Form Consumer Contract”, listing 26 common unfair terms in 12 categories favoring suppliers or service providers which should be amended or deleted.
Unfair terms in Standard Form Consumer Contracts in China