The Australian Competition and Consumer Commission has filed a complaint against Airbnb for allegedly deceiving customers.
Between January 2018 and August 2021, the ACCC alleges that Airbnb showed prices for Australian lodging on its website without making it clear that the rates were in US dollars.
‘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 on Wednesday.
‘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.’
When thousands of consumers complained to Airbnb about being charged more than the listed price, the business allegedly misled many of them into believing they had chosen the US dollar.
An Australian customer who thought they were paying $500 for their booking would have spent nearly $A700 before conversion fees throughout the alleged offence period.
‘Airbnb did not compensate many consumers who complained about this conduct,’ Ms Cass-Gottlieb said.
‘Despite thousands of consumers complaining to Airbnb about the way prices were displayed, Airbnb didn’t amend its booking platform until after the ACCC raised the issue.’
‘So we will be arguing that the court should order Airbnb to compensate people who were misled about the price of their accommodation.’
The ACCC filed the claim in the Federal Court on Tuesday, seeking compensation for affected consumers and other orders.