BACKGROUND

Airbnb was ordered to pay penalties of $15 million for making misleading representations to consumers about accommodation prices.

Basically, the misrepresentation applied to the display of prices on their website.

The display did not indicate that prices were displayed in US dollars, leading customers to believe that the amounts were stated in Australian dollars.

Then, when receiving a complaint from a customer, Airbnb falsely told those customers that it was the users who had chosen to display the price in US dollars when often they have not.

Regardless of receiving thousands of complaints, Airbnb did not change the booking platform until the ACCC intervened.

Amongst other things, Airbnb was also required to compensate impacted customers.

TAKEAWAY

Business owners should review their obligations under the Australian Consumer Law which states that businesses cannot make false or misleading representations about:

(a)    the standard quality, value or grade of goods or services;

(b)    the composition, style, model, history or prior use of goods or services;

(c)    that goods are new when they are not;

(d)    that a particular person (e.g., a celebrity) has agreed to acquire goods or services;

(e)    testimonials by any person, for example, fake Google reviews;

(f)     sponsorship approval, etc.;

(g)    price of goods or services;

(h)    availability of facilities to repair;

(i)     origin of goods;

(j)     the consumer’s needs for the goods or services

(k)    any condition, warranty, guaranty, right or remedy; and

(l)     the requirement to pay for any condition, warranty or guaranty (e.g., the sale of a warranty).

If your business needs guidance on adhering to these regulations or faces challenges in maintaining compliance, we are here to help. Feel free to contact us for support tailored to your specific needs.