Airbnb has agreed to pay a staggering $30 million after misleading thousands of Australian customers about accommodation prices for nearly four years. The Federal Court fined the popular short-stay rental platform $15 million in penalties. Also, order to offer up to $15 million more in compensation to affected consumers.
The issue originated from Airbnb displaying prices for Australian listings with only a dollar sign. It fails to clarify whether it was Australian or US dollars. Between 2018 and 2021, roughly 63,000 customers making over 70,000 bookings were unknowingly charged in US dollars. It was significantly higher than they expected.
ACCC recieved over 2000 complaints
The Australian Competition and Consumer Commission (ACCC) received over 2,000 complaints during this period. However, Airbnb took no action until August 2021, finally amending its website to clearly distinguish currencies.
“Consumers were misled about the price of accommodation,” explained ACCC Chair Gina Cass-Gottlieb.
Airbnb’s unclear pricing misled customers, robbing them of the chance to make informed booking decisions.
The financial repercussions for Airbnb are significant. Aside from the hefty fine, the court-ordered compensation program could reach another $15 million. Affected customers can expect to receive the difference between the listed price in Australian dollars and the actual amount they paid, along with any foreign transaction fees incurred. The average compensation is estimated at around $230 per consumer.
Transparency in online transactions
Airbnb spokesperson Susan Wheeldon downplayed the issue, claiming the currency confusion was “rectified promptly” once brought to their attention. However, she acknowledged the frustration of impacted customers and offered apologies.
The court ruling serves as a reminder of the importance of transparency in online transactions. Specially, when dealing with international currencies. This case could set a precedent for future lawsuits against deceptive pricing practices, not just in Australia, but across the globe.
If you booked an Airbnb in Australia between 2018 and 2021 and suspect you were overcharged, be sure to check your email or text messages for communication from the company.
