Airbnb, a well-known short-term rental platform, was fined A$15 million by an Australian court for failing to clearly indicate that its accommodation prices were in US dollars rather than Australian dollars. It was also liable for compensation of A$15 million, for a total fine of A$130 million (equivalent to A$158 million).
From January 1, 2018, to August 30, 2021, Airbnb Ireland UC displayed the total price of Australian accommodations to 63,000 Australian customers, but only indicated the price in US dollars, without indicating whether the price was in Australian dollars or US dollars. Customers only discovered the US dollar price on the checkout page.
More than 2,000 consumers complained to Airbnb, but the company responded by claiming they had been paid in U.S. dollars, even though that was not the case.
Federal Court Justice Brendan McElwaine ruled yesterday (20th) that the conduct was misleading. In a written judgment, the judge said: "The affected users... suffered damage in a number of ways. They were deprived of the opportunity to make an informed choice. All prices displayed in US dollars appeared lower than in Australian dollars. As a result, the relevant users paid more for the accommodation they selected than they expected."
Justice McElwaine ordered Airbnb to pay a $15 million fine to the Australian federal government within 30 days, as well as $400,000 in legal costs.
Airbnb promised the court it would provide compensation to eligible customers, potentially totaling another $15 million, and it must implement a consumer law compliance plan, including a new complaints-handling system and more employee training.
Airbnb's country manager for Australia and New Zealand, Susan Wheeldon, said ensuring customers could book with confidence was the company's top priority. "While only a very small number of Australian guests may have been affected, we regret this and Airbnb apologises to those affected," she told AAP in a statement.
Ms Wheeldon said the company was committed to price transparency and would continue to look for ways to improve its systems so guests and hosts enjoyed their travel stays.
Australian Competition and Consumer Commission Chair Gina Cass-Gottlieb said the ruling sends a strong message to large online platforms that they need to comply with Australian law. She said: "We are pleased that Airbnb has agreed to pay compensation, which provides a meaningful outcome for affected consumers. Eligible consumers will be contacted by Airbnb within the next 45 days and invited to make a claim, but they can also contact Airbnb to inquire about their eligibility."
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