Airbnb has been fined $15 million for failing to indicate that accommodation prices were quoted in US dollars instead of Australian dollars. Compensation in the same amount must be paid.
Between January 1, 2018 and August 30, 2021, Airbnb Ireland UC showed 63,000 Australian customers the total price for Australian accommodation with just a dollar sign.
There was no indication whether the price was in Australian or US dollars, with customers only finding out the price was in USD when they got to the checkout page.
More than 2,000 consumers complained to Airbnb, but the company said they had chosen to pay in USD even though they had not.
ACCC chair Gina Cass-Gottlieb said the verdict sent a strong message to major digital platforms.
Consumer watchdog ACCC chair Gina Cass-Gottlieb said customers eligible for a partial refund would be contacted in the coming days
Airbnb must pay a $15 million fine and another $15 million in payouts to customers
Judge Brendan McElwaine of the Federal Court ruled on Wednesday that the conduct was misleading or deceptive or was likely to mislead or deceive.
“The affected users… suffered harm in various ways,” he said in his written judgment.
'They were deprived of the opportunity to make an informed housing choice.
'All prices shown in USD appeared lower than if they were shown in AUD.
'The users in question therefore paid more than they expected for the chosen accommodation.'
Judge McElwaine ordered Airbnb to pay a $15 million fine to the Commonwealth of Australia within 30 days, as well as $400,000 in costs.
Airbnb promised the court that it would provide compensation to eligible customers, which could total another $15 million.
The company must implement a consumer law compliance program, which will include a new complaints handling system and increased staff training.
Susan Wheeldon, Airbnb country manager for Australia and New Zealand, said the company's priority is to ensure consumers can book with confidence.
“While only a very small percentage of Australian guests are believed to have been affected, we are disappointed that this has happened,” she told AAP in a statement.
“Airbnb would like to apologize to those guests.”
Ms Wheeldon said the company is committed to price transparency and will continue to find ways to improve its systems so guests and hosts can enjoy travel.
The chairman of the Australian Competition and Consumer Commission said the judgment sent a strong message to major digital platforms that they must follow Australian laws.
“We are pleased with Airbnb's commitment to pay compensation, which will provide a meaningful outcome for affected consumers,” said Gina Cass-Gottlieb.
“Eligible consumers will be contacted by Airbnb within the next 45 days and invited to submit a claim, but they can also contact Airbnb to inquire about their claim if they believe they qualify.”