Airbnb has been told by the European Commission to clean up its pricing as well as commercial terms.
The accommodation platform has until the end of August to present solutions to changes demanded by the EC.
The commission says Airbnb does not comply with the Unfair Commercial Practices Directive, the Unfair Contract Terms Directive and the Regulation on the jurisdiction in civil and commercial matters.
It says the platform should change how it presents pricing information within the initial search to ensure a total price, including charges and fees, is shown. Where it’s not possible to calculate the total, consumers must be clearly informed of charges that might apply.
A second area of concern highlighted by the EC is whether an offer comes from a private host or a professional, as consumer protection rules differ in this regard.
Airbnb has also been asked to clarify certain “terms or removal of illegal terms.”
A statement from the commission says:
“Airbnb’s terms of services should be brought into conformity with European consumer law. The Unfair Contract Terms Directive requires that standard terms and conditions do not create a significant imbalance between the parties' rights and obligations, to the detriment of the consumer. The Directive also requires that terms are drafted in plain and intelligible language so that consumers are informed in a clear and understandable manner about their rights.”
The commissioner for justice, consumers and gender equality, Vera Jourová, says the popularity of services such as Airbnb “cannot be an excuse” for noncompliance.
“Consumers must easily understand what for and how much they are expected to pay for the services and have fair rules, e.g. on cancellation of the accommodation by the owner. I expect Airbnb to follow up swiftly with the right solutions.”
The EC statement lays out how Airbnb should be complying with the regulations. Examples include that the company should not “mislead consumers” by using a court in a country different to “the one in their Member State of residence” and that Airbnb cannot “deprive consumers of basic legal rights to sue host in incidences of personal harm or other damages.
The commission and EU consumer authorities will review changes proposed by Airbnb and if not deemed adequate, the company could face an “enforcement action.”
Airbnb says it will work with the authorities to clarify the points raised.