September, Friday 20, 2024

Airbnb slapped with a hefty A$15m penalty for deceiving Australian customers


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Airbnb has been fined A$15m by Australia's Federal Court for misleading approximately 63,000 Australian customers. The company was found to have advertised prices in US dollars on its website without initially making it evident to customers. Consequently, some customers ended up paying more than expected for their accommodations. Airbnb has expressed its apologies and claimed a commitment to "price transparency." The fine was issued after Airbnb admitted to making false or misleading representations to Australian users between January 2018 and August 2021. To compensate those affected, Airbnb has also agreed to pay up to A$15m. The issue impacted around 70,000 bookings and 63,000 consumers. The Australian Competition and Consumer Commission, responsible for bringing the case against Airbnb, emphasized that prices should have been displayed in Australian dollars, unless customers had specifically chosen to view prices in a different currency. The commission stated that the fine serves as a strong warning to digital platforms like Airbnb, reminding them to comply with Australian Consumer Law and avoid misleading consumers. Customers eligible for compensation are expected to be contacted by Airbnb within 45 days. However, individuals who believe they may have been affected and have not heard from Airbnb by that time can reach out to the company directly. Airbnb has since modified its pricing display for countries that use dollars, incorporating a three-letter code denoting the currency throughout. Susan Wheeldon, Airbnb's country manager for Australia and New Zealand, expressed her apologies and acknowledged that although only a small percentage of Australian users were believed to have been impacted, the company was disappointed that the issue occurred. She assured customers that the problem has been resolved and highlighted that the final payment amount now clearly indicates the applicable currency code, including USD, when guests confirm their booking.