By Blessing Nweke
Airbnb, the popular accommodation-sharing platform, is facing a hefty A$15 million fine and compensation payments following revelations that it misled approximately 63,000 Australian customers. The penalty, issued by Australia’s Federal Court on Wednesday, comes after Airbnb admitted to making false or misleading representations to users in Australia from January 2018 to August 2021.
The issue revolved around the presentation of prices on Airbnb’s website, where some rental listings displayed prices in US dollars instead of the expected lower value in Australian dollars. The discrepancy was not initially made clear to customers, resulting in some paying more than anticipated for their accommodations.
Initially, customers in Australia would see a price with a dollar sign, without explicit mention that it was in US dollars. The revelation of the currency only occurred on the final booking screen, displayed in a small font. This affected an estimated 70,000 bookings and 63,000 consumers, prompting over 2,000 complaints from Australian users concerned about being charged in US dollars.
The Australian Competition and Consumer Commission (ACCC), responsible for bringing the case, argued that customers should have been shown prices in Australian dollars by default unless they deliberately chose to view the cost in another currency. The fine imposed by the court underscores the importance of large digital platforms adhering to consumer protection laws, emphasizing the need for transparency.
Gina Cass-Gottlieb, the chair of the ACCC, stated that affected consumers ended up paying more than expected due to the prevailing USD/AUD exchange rate at the time. Some users also incurred additional charges from their banks for paying in foreign currency. Cass-Gottlieb emphasized that the fine sends a strong signal to platforms like Airbnb, emphasizing compliance with consumer protection laws.
Airbnb responded by expressing its commitment to “price transparency” and issued an apology for the confusion caused. The company admitted to the misleading representations and informed users that changes had been implemented to display prices with a three-letter currency code for countries using dollars.
Susan Wheeldon, Airbnb’s country manager for Australia and New Zealand, apologized for the incident, noting that while only a “small percentage” of Australian users were affected, the company was disappointed by the oversight. She highlighted that the problem had been rectified, with the final payment amount indicating the applicable currency code at the point when guests confirmed their booking.
Affected customers eligible for compensation are expected to be contacted by Airbnb within the next 45 days. Those who believe they may have been impacted but do not receive communication by that date are encouraged to reach out to the company. Airbnb’s swift response and changes to pricing display mechanisms aim to restore trust among users and prevent such issues in the future.