Airbnb got a big fine
Airbnb got a big fine, of $15 million in Australia because they didn’t tell customers clearly about prices from 2018 to 2021. They used the “$” sign for US dollars but didn’t say it wasn’t in Australian dollars. The court said Airbnb must also pay back money to the people who were affected.
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Around 70,000 customers were given wrong information about prices from January 2018 to August 2021. The prices looked like they were in US dollars, but the Australian currency was never mentioned. The court said Airbnb didn’t do a good job of telling people the prices were in US dollars. Only on the fourth page of the booking did it clearly say the prices were in US dollars.
Airbnb admitted they broke the law in Australia by not being clear about the money. They blamed a computer mistake that didn’t show Australian customers the right currency. The Airbnb leaders knew about customer complaints in 2018.
The court told Airbnb to pay back up to $15 million to the people who had trouble, giving them their money back and covering fees for changing money. The average payment to customers is expected to be around A$230.
Susan Wheeldon, who manages Airbnb in Australia and New Zealand, said they fixed the money issue on their website as soon as they found out.
Gina Cass-Gottlieb, the head of the Australian Competition and Consumer Commission (ACCC), said giving money back is important for the affected people. She explained, “Airbnb will contact eligible customers in the next 45 days, but if you think you deserve money and Airbnb hasn’t contacted you, you can ask them about it.”
During the mentioned period, 63,000 users made about 77,000 bookings. Airbnb already gave back all the money for accommodation to 8,000 users, totaling A$9.4 million. Out of these, around 2,000 customers complained to Airbnb.
Wheeldon apologized, saying, “Even though only a small number of Australian guests had a problem, we’re sorry it happened. Airbnb wants to say sorry to those guests.” The court calculated the total difference in prices between Australia and the US for the bookings in question was $16.8 million, with Airbnb making about A$9 million.
As part of the deal with the ACCC, Airbnb will also pay an extra $400,000 to cover the commission’s legal costs.
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