Airbnb’s Pricing Said to Violate European Laws

16 July 2018

The European Commission accused Airbnb of violating European laws and “forgetting its responsibilities.” The company has until the end of August to submit a justification for its pricing. Airbnb stated that it is ready.

Airbnb must submit a justification for its pricing practices, which the EU believes contravenes its laws, Věra Jourová, the European Commissioner for Justice, Consumers and Gender Equality told reporters in Brussels. The online short-stay accommodation platform has until the end of the summer to end its practice of applying additional fees at the time of payment. According to Věra Jourová, Airbnb is “another company” that is making the mistake of “forgetting its responsibilities,” according to reporting by The Guardian.

The platform, through which people can book stays in rooms or homes while travelling around the world, was the subject of an accusation by the European Commission and European national regulators stating that its initial listed pricing fails to reflect the actual cost, including fees and additional charges (such as cleaning) that customers are required to pay. Ms Jourová went further, saying that Airbnb’s terms and conditions are unclear and that the company should not attempt to resolve consumer complaints in courts that are outside the country where the complainant lives.

The Commissioner stated that she believes that this is the important issue because “more and more consumers are booking their vacation accommodations via online platforms” and because “this sector has brought many new opportunities for tourists.” However, Ms Jourová added that that “popularity should not be an excuse for failing to comply with EU consumer rules.” “Consumers should be able to easily understand how much they will have to pay for services and be subject to reasonable rules regarding accommodation cancellations by the respective owners. I hope Airbnb will quickly implement the necessary solutions,” said the commissioner.

Airbnb quickly reacted to the Czech-born commissioner’s statement saying: “We take this issue seriously and are committed to being as transparent as possible with our community,” a company representative stated. The company added that “guests are informed of all our fees, including service charges and taxes, before confirming the decision to book the accommodation. We will work together with the authorities to clarify the points raised.”

Original Story: Observador – Marta Leite Ferreira

Translation: Richard Turner