Are you an Airbnb user? You might be eligible for a refund—here's why!
- Replies 4
The world of online accommodation booking has brought convenience and variety to travellers, but a recent development involving Airbnb is a cautionary tale.
Airbnb, a popular online marketplace for lodging and tourism experiences, has recently been in the spotlight for a significant oversight that has affected tens of thousands of Australian customers.
In December, the Federal Court slapped Airbnb with a hefty $15 million fine for this misleading conduct.
The court found that between January 1, 2018, and August 30, 2021, Airbnb Ireland UC displayed to some Australian customers the total price of Australian accommodation with only a dollar sign, leading them to believe the prices were in Australian dollars.
As a result of this ruling, Airbnb is now reaching out to approximately 63,000 affected customers who may be eligible for compensation.
The company is urging all customers who receive a text message regarding this issue to follow the instructions to receive their refund.
'Following action in the Federal Court of Australia by the ACCC, some Airbnb customers may have received a text message and emails from both Airbnb and Deloitte, who are Airbnb’s appointed claims administrators, saying they may be eligible for a partial refund for bookings made between January 2018 and August 2021,' Airbnb Australia stated.
‘We advise these customers to follow the instructions in the text message and emails.’
‘If in doubt, customers should access the link to the claims portal provided via notification through their official Airbnb account.’
In his ruling, Federal Court Justice Brendan McElwaine found Airbnb’s conduct misleading or deceptive or likely to mislead or deceive.
He ordered Airbnb to pay a $15 million penalty to the Commonwealth of Australia within 30 days and $400,000 in costs.
Australian Competition and Consumer Commission chair Gina Cass-Gottlieb expressed concern over the situation, stating that customers using Airbnb's Australian website for accommodations in the country would logically expect the prices in Australian currency.
'By paying in US dollars, these consumers were charged more than they expected to pay and were deprived of a chance to make an informed decision about whether to make the booking because of this misleading conduct regarding the price,' she said.
'We took this case to send a strong signal to large digital platforms like Airbnb that they must comply with the Australian consumer law and not mislead consumers.'
The affected customers will be reimbursed for the difference between what they expected to pay in Australian dollars and what they actually paid. The average compensation is expected to be about $230 per customer.
In addition to the fine and refunds, the company was also ordered to establish and implement a consumer law compliance program, which will feature a new complaints handling system and more staff training.
Have you been affected by this issue with Airbnb? Share your experiences in the comments below.
Airbnb, a popular online marketplace for lodging and tourism experiences, has recently been in the spotlight for a significant oversight that has affected tens of thousands of Australian customers.
In December, the Federal Court slapped Airbnb with a hefty $15 million fine for this misleading conduct.
The court found that between January 1, 2018, and August 30, 2021, Airbnb Ireland UC displayed to some Australian customers the total price of Australian accommodation with only a dollar sign, leading them to believe the prices were in Australian dollars.
You may be one of the thousands of Airbnb users who will receive a refund. Credit: Shutterstock
As a result of this ruling, Airbnb is now reaching out to approximately 63,000 affected customers who may be eligible for compensation.
The company is urging all customers who receive a text message regarding this issue to follow the instructions to receive their refund.
'Following action in the Federal Court of Australia by the ACCC, some Airbnb customers may have received a text message and emails from both Airbnb and Deloitte, who are Airbnb’s appointed claims administrators, saying they may be eligible for a partial refund for bookings made between January 2018 and August 2021,' Airbnb Australia stated.
‘We advise these customers to follow the instructions in the text message and emails.’
‘If in doubt, customers should access the link to the claims portal provided via notification through their official Airbnb account.’
In his ruling, Federal Court Justice Brendan McElwaine found Airbnb’s conduct misleading or deceptive or likely to mislead or deceive.
He ordered Airbnb to pay a $15 million penalty to the Commonwealth of Australia within 30 days and $400,000 in costs.
Australian Competition and Consumer Commission chair Gina Cass-Gottlieb expressed concern over the situation, stating that customers using Airbnb's Australian website for accommodations in the country would logically expect the prices in Australian currency.
'By paying in US dollars, these consumers were charged more than they expected to pay and were deprived of a chance to make an informed decision about whether to make the booking because of this misleading conduct regarding the price,' she said.
'We took this case to send a strong signal to large digital platforms like Airbnb that they must comply with the Australian consumer law and not mislead consumers.'
The affected customers will be reimbursed for the difference between what they expected to pay in Australian dollars and what they actually paid. The average compensation is expected to be about $230 per customer.
In addition to the fine and refunds, the company was also ordered to establish and implement a consumer law compliance program, which will feature a new complaints handling system and more staff training.
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