An elderly person spent CNY 180,000 to move into a certain nursing home, but after a week, found that the actual situation of the nursing home did not match the promotion. Can they request a refund?

[Case Review]

Mr. Gu, who is in his eighties and has a sick wife, searched for a nursing home online in order to take care of his wife and facilitate medical treatment. At the invitation of the staff, he visited a certain nursing home in person. After the visit, Mr. Gu received a promotional brochure from the nursing home. The brochure indicated that the nursing home had introduced an advanced unit-based care concept, providing customized daily care plans. It was equipped with a team of professional nutritionists to plan nutritious meals for the elderly, offering a diverse range of dishes, including two meat and two vegetable dishes with soup for lunch, and one meat and two vegetable dishes with soup for dinner, in addition to snacks in the morning and afternoon.

The weight and calorie intake of the food consumed daily were tailored according to the physical condition of the elderly. What was particularly appealing was that the nursing home was located near a certain tertiary comprehensive hospital and had established a green medical channel for the elderly, providing medical services such as regular on-site expert consultations.

Later, Mr. Gu signed the Service Agreement for the Health Maintenance and Residential Card with the nursing home, purchased one residential card, prepaid CNY 180,000 for bed fees and CNY 1,180 for meal and service fees, and officially checked into the nursing home. However, one week after checking in, Mr. Gu found that the daily meals provided by the nursing home almost always consisted of chicken and eggs, and that the dishes and soups were unsuitable for his wife to eat as they could easily exacerbate her condition.

As a result, Mr. Gu informed the staff of this situation via WeChat and explicitly stated his intention to terminate the contract, then left the nursing home with his wife. Subsequently, Mr. Gu contacted the nursing home multiple times through relevant departments in hopes of mediating a refund, but the nursing home did not respond. In frustration, Mr. Gu filed a lawsuit with the court, demanding a refund and compensation for losses from the nursing home.

It was found that during the period when Mr. and Mrs. Gu stayed at the nursing home, the breakfast included eggs, the lunch consisted of three dishes, and the dinner consisted of two to three dishes, with meat dishes, vegetarian dishes, and soups. Meanwhile, the claims in the promotional brochure, such as establishing a green channel with the hospital and providing regular on-site consultations, were not true.

After trial, the court held that the service contract signed between Mr. Gu and the nursing home was legally valid. Given the nature of the service contract, it was not appropriate to enforce its continued performance. Therefore, Mr. Gu's request to terminate the contract shall be supported. At the same time, the content in the promotional brochure produced by the nursing home had a significant impact on Mr. Gu's choice, and the actual services provided indeed had flaws compared to the advertised content. Therefore, taking into account factors such as Mr. Gu's actual length of residence and payment situation, the court ruled that the nursing home shall refund CNY 180,000 and compensate Mr. Gu for the corresponding interest losses. After the judgment was rendered, neither party appealed.

[Judge's Reflections]

I. Service contracts are not suitable for enforced continued performance

Service contracts possess a certain degree of personal attributes, and their performance relies on the mutual cooperation of both parties. If one party explicitly expresses the intention to terminate the contract prematurely during its performance, considering the special nature of service contracts, it is not appropriate to enforce continued performance. After the termination of the contract, the consequences of the termination must be handled in accordance with the law, including returning payments already made, compensating for losses, paying liquidated damages, etc.

II. Discrepancies between promotions and actual conditions can be deemed as performance flaws

Currently, many elderly care institutions create exquisite promotional brochures to attract clients, describing their geographical location, surrounding transportation, medical resources, as well as internal service facilities and equipment. These descriptions and introductions are precisely the important factors that clients consider when choosing an elderly care institution. If the promotional brochure makes explicit promises or provides detailed and specific content that is closely related to the contract price, and the elderly care institution fails to provide services in accordance with its promises or promotional content during contract performance, it shall be deemed as having performance flaws in the contract.

III. A healthy and orderly market for elderly care services shall be fostered.

At present, some elderly care institutions exaggerate their promotions and use vague language to attract customers, which can easily lead to disputes. Additionally, some elderly care institutions often adopt a procrastinating and evasive attitude when faced with refund requests, making it difficult for the elderly to safeguard their rights. Elderly care institutions shall uphold the principle of honesty and regulate their business practices; the elderly shall think rationally when making decisions and avoid rushing to sign contracts and make payments. Children shall also show more care and love for their elderly family members, accompanying their parents on site visits to gain a detailed understanding before making a prudent choice; relevant departments shall increase supervision and governance efforts. Through the joint efforts of all three parties, a healthy and orderly market environment for elderly care services can be promoted.

[Committee Member Comments]

Han Guohua, Member of the Shanghai Municipal Committee of the Chinese People's Political Consultative Conference and President of the Trade Union of Shanghai Lingang Economic Development (Group) Co., Ltd.

Elderly care services are crucial to people's well-being. With the accelerating process of social aging, the demand in the elderly care market is growing day by day, and the service quality and standardized operation of elderly care institutions have increasingly become the focus of social attention. Currently, the service quality of elderly care institutions varies greatly. To pursue profits, some institutions engage in exaggerated promotions and fail to deliver services as promised. Coupled with the limited risk prevention capabilities of the elderly, these issues can easily trigger consumer disputes.

In this case, the people's court made a judgment on the plaintiff's claims in accordance with the law by accurately ascertaining the facts and applying the law, thereby safeguarding the legitimate rights and interests of elderly consumers. During the trial process, the people's court also invited staff members from the Shanghai Consumers Council to observe the court proceedings. This move is of positive significance in strengthening the collaboration and linkage between the judiciary and social governance, as well as in jointly promoting the protection of the legitimate rights and interests of the elderly.

[Link for Legal Provisions]

Civil Code of the People's Republic of China

Article 465 A contract established in accordance with the law is protected by law.

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Article 566 After a contract is dissolved, if performance has not yet commenced, it shall be terminated; if performance has already commenced, the parties may, based on the circumstances of performance and the nature of the contract, request restitution to the original state or take other remedial measures, and have the right to request compensation for losses.

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