Airbnb hosting company has been sued by the competition regulator for forcing the holiday rental company to compensate thousands of customers for allegedly cheating them on prices.
Key points:
- The ACCC says Airbnb posted prices with dollar signs, but in many cases did not make it clear that prices were in US dollars.
- The regulator wants customers who have had problems with currency screens to contact him
- Airbnb said it would fully compensate affected customers
The Australian Competition and Consumer Commission (ACCC) accused Airbnb of misleading people into believing that the prices of Australian accommodation were in Australian dollars while in many cases in US dollars.
He has taken the company to Federal Court to force it to pay reimbursements and damages.
ACCC President Gina Cass-Gottlieb told ABC that 2,000 customers had complained to Airbnb and were likely to be affected, as the watchdog saw a spike in complaints in 2021. and numerous complaints on social media.
The ACCC said that between at least January 2018 and August last year, Airbnb tricked people into showing prices on their website and mobile app with a dollar sign, but made it clear that the price was in US dollars.
“Airbnb’s misleading behavior has deprived consumers of the opportunity to make an informed decision about whether to book their holiday accommodation on the Airbnb platform and at what price,” said the ACCC president. Gina Cass-Gottlieb.
“In addition to paying higher-than-expected prices, some consumers who were charged in U.S. dollars also found themselves more out of pocket thanks to the currency conversion fees charged by the US provider. your credit card “.
When thousands of people complained, Ms. Cass-Gottlieb said Airbnb had told many customers that prices were shown in U.S. currency because they had selected that option.
Airbnb’s country director for Australia and New Zealand, Susan Wheeldon, told ABC in a statement that it would fully compensate all affected customers and investigate how the problems occurred.
“While it is believed that a fraction of a percentage of the guests were affected, we were very disappointed to find that this happened and we will compensate the affected guests,” Ms Wheeldon said.
“When the ACCC informed us of this issue, we worked to update our platform so that relevant currencies are clearly displayed from the front page for all Australian guests booking stays on our platform.
“We are also conducting a thorough review of how this issue occurred and how guest complaints were initially handled.”
Airbnb is committed to fully compensating customers who were overcharged. (Reuters: Dado Ruvic / Illustration)
‘Totally criminal’
Social worker and mother of two Penny Wearne told ABC she had to struggle with Airbnb for about two months to get a refund when she was charged nearly $ 300 in 2018 for accommodation at Victoria’s Dandenong Ranges, where she attended at a friend’s wedding.
Ms. Wearne said the price when she booked was $ 799, but found that the actual cost was nearly $ 1,100 because she was charged in U.S. currency.
Finally, Airbnb agreed to refund the $ 300, but only after paying the full amount.
He then offered her a $ 150 voucher, which she denied, and was later reimbursed for $ 300.
“I paid the final amount and then they said to me again,‘ We’re going to offer you an Airbnb voucher for $ 150, ’” he said.
“And that was after it was agreed that they would reimburse him, so I lost him.”
Ms. Wearne supports the lawsuit.
“Account must be requested … [their actions were] totally criminal. It was as if my money had really been stolen, “he said.
“They could also go into your bank account and take your money.
“And, you know, it was very clearly advertised at that price of 799 Australian dollars, so I didn’t expect to be charged more than that.”
The ACCC has asked customers affected by Airbnb currency display issues to contact it.
He said he was asking for “statements, court orders, financial penalties, orders to compensate affected consumers, costs and other orders.”
“In taking this action, we are making it very clear that digital platforms like Airbnb must ensure the accuracy of all statements that may affect consumers’ purchasing decisions, ”Ms. Cass-Gottlieb.
“Although thousands of consumers complained to Airbnb about the way prices were displayed, Airbnb did not change its booking platform until the ACCC raised the issue.”
Ms Cass-Gottlieb said Airbnb changed the way coins were displayed in November last year after the ACCC intervention.
Posted 6 hours 6 hours agoWednesday, June 8, 2022 at 1:53 AM, updated 1 hour ago 1 hours agoDume June 8, 2022 at 6:47 AM