The Commission and member states’ consumer protection authorities have called on Airbnb to align its terms and conditions with EU consumer rules, notably with regard to transparency on presentation of prices.
Acting in concert on Monday 16 July, the Commission and the national authorities gave online operator Airbnb until the end of August to bring forward detailed proposals on how it will come into line with EU legislation, after numerous infringements of consumer rights guaranteed under EU law. The Commission and the national consumer authorities will review the proposed changes in September.
“More and more consumers book their holiday accommodation online and this sector has brought many new opportunities to holidaymakers. But popularity cannot be an excuse for not complying with EU consumer rules. Global online companies must assume their responsibilities. We call on them to align their terms and conditions with the legislation and be transparent on their pricing”, European Justice and Consumers Commissioner Vĕra Jourovà told the press. She added: “The same rules must apply online and offline”.
Unfair trading practices. To comply with the EU directive banning any such practices, Airbnb will have to amend the way it presents information on pricing from the initial search on its website, in order to ensure that, whenever properties are offered, the consumer is provided with the total price inclusive of all the applicable mandatory charges and fees, such as service and cleaning charges, or, when it is not possible to calculate the final price in advance, clearly inform the consumer that additional fees might apply. It should also make clear whether the offer is made by a private host or a professional, as the consumer protection rules differ.
Unfair contract terms. To comply with the European directive, Airbnb will have to clarify its terms and conditions and remove any that are illegal.
It should not go to a court in a country which is not in the consumer’s member state of residence; - it must not decide unilaterally and without justification which terms may remain in effect in case of termination of a contract; - Airbnb cannot deprive consumers from their basic legal rights to sue a host in case of personal harm or other damages; - Airbnb cannot unilaterally change the terms and conditions without clearly informing consumers in advance and without giving them the possibility to cancel the contract; - terms of services cannot confer unlimited and discretionary power to Airbnb on the removal of content; - termination or suspension of a contract by Airbnb should be explained to consumers, governed by clear rules and it should not deprive the consumer from the right to adequate compensation or the right to appeal; - Airbnb’s policy on refunds, compensation and the collection of damage claims should be clearly defined and should not deprive consumers from their right to activate the available legal remedies; - Airbnb should provide an easily accessible link to the Online Dispute Resolution (ODR) platform on its website.
Jourová seized the opportunity to urge member states and the European Parliament to approve the legislative package presented in April, the “New Deal for Consumers”, that will introduce a European collective redress system and higher harmonised fines for companies that contravene European consumer law (see EUROPE 11999). (Original version in French by Aminata Niang)