Sydney, Dec 20: The Federal Court of Australia has ordered Airbnb Ireland UC to pay a hefty $15 million in penalties, along with offering up to $15 million in compensation to eligible Australian customers. This decision comes after Airbnb admitted to misleading Australian users about the currency of accommodation prices listed on its platform.
Between January 2018 and August 2021, Airbnb misrepresented to Australian consumers that the prices for local accommodations were in Australian dollars (AUD).
However, around 70,000 consumers were charged in US dollars (USD), without a clear indication of the currency on the website.
The Australian Competition and Consumer Commission (ACCC) Chair, Gina Cass-Gottlieb, stated that consumers were deceived by the ambiguous currency symbol, leading them to believe the prices were in AUD. This misconduct resulted in higher charges for consumers due to currency exchange rates and additional bank fees for foreign transactions.
Affected consumers, who ended up paying significantly more than anticipated, will be compensated by Airbnb. The compensation will cover the difference between the expected AUD amount and the actual USD charge, including any related foreign transaction fees. On average, each affected consumer is estimated to receive about $230.
Consumers who believe they are eligible for compensation but haven’t been contacted by Airbnb within the next 45 days are encouraged to reach out to the company directly. Airbnb, in collaboration with Deloitte Australia, will manage the compensation claims. To ensure security and avoid scams, consumers are advised to access the Deloitte claims portal only through their official Airbnb account.
The court’s decision also requires Airbnb to cover part of the ACCC’s legal costs and establish a compliance program aligned with Australian Consumer Law.
As of August 31, 2021, Airbnb has amended its platform to denote prices in USD with the abbreviation ‘USD’. This move is seen as a step towards greater pricing transparency on the platform.
The incident underscores the ACCC’s ongoing focus on digital platforms and deceptive advertising in the digital economy. This case marks a significant step in ensuring that digital platforms comply with Australian consumer laws and offer transparent and honest information to their users.
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