ACCC targets Airbnb for misleading consumers over advertised rental prices
Airbnb is now under fire from the Australian Competition and Consumer Commission (ACCC) for failing to clarify whether its prices are charges in Australian or US dollars.
The ACCC has launched Federal Court action against Airbnb alleging that it misled Australian customers over the pricing of Australian accommodation over a period of almost four years – between at least January 2018 and August 2021.
Accommodation prices were displayed using only a dollar sign ($), without making it clear that prices were in US dollars, leading to a 40% price increase in some cases based on the currency difference at the time of booking.
“We allege that Airbnb’s misleading conduct meant that consumers were deprived of the opportunity to make an informed choice about whether, and at what price, to book their holiday accommodation on the Airbnb platform,” ACCC chair Gina Cass-Gottlieb said.
“In addition to paying higher prices than expected, some consumers who were charged in US dollars also found themselves further out of pocket through currency conversion fees charged by their credit card provider.”
Airbnb argued that users were at fault after selecting the region of currency themselves. The ACCC found this to be false.
“By taking this action, we are stating very clearly that digital platforms like Airbnb need to ensure the accuracy of all statements that may affect consumers’ purchasing decisions,” Ms Cass-Gottlieb said.
According to The Australian Financial Review, the ACCC first contacted Airbnb about the matter in July 2021 and the conduct ceased just a month later.
Airbnb’s country manager for Australia and New Zealand Susan Wheeldon claimed only a small percentage of customers were affected.
“We were nonetheless extremely disappointed to have found that this occurred, and we will compensate affected guests,” Ms Wheeldon said.
The platform has been updated “so that the relevant currencies are clearly displayed from the first page for all Australian guests booking stays on our platform,” Wheeldon said.
This is not the first time the ACCC has targeted Airbnb.
In 2015, the watchdog accepted court-enforceable undertakings from Airbnband online travel agency eDreams over allegations of “drip pricing”.
Price dripping is the practice of failing to disclose additional fees in a headline price.
As for the latest case, the ACCC stated, “Airbnb did not compensate many consumers who complained about this conduct, and so we will be arguing that the court should order Airbnb to compensate people who were misled about the price of their accommodation,” Ms Cass-Gottlieb said.
“Despite thousands of consumers complaining to Airbnb about the way prices were displayed, Airbnb did not amend its booking platform until after the ACCC raised the issue,” she added.
Irit Jackson, 9th June 2022
