Massive restrictions on Airbnb in Australia

The Australian Federal Court has ordered Airbnb to pay a US$15 million fine and the company must pay more than US$15 million in compensation for making misleading advertisements to more than 70,000 customers.

Airbnb was sanctioned on December 20 for failing to state that transaction amounts were in US dollars and not Australian dollars, it was reported the guardian.

Between January 2018 and August 2021 there is no precision for the “$” designation. During this period, 63,000 users made 77,000 reservations.

The court recalled that 2,088 Australian users had complained to Airbnb.

Before the Australian Competition and Consumer Commission (CACC), the company admitted breaching the Australian Consumer Law.

Airbnb has already reimbursed 8,000 users the full cost of accommodation, amounting to A$9.4 million, but the court found the full value of the difference between Australian and US prices was $16.8 million.

The company said that a computer bug was the cause of the problem and that it has now been fixed.

CACC President Gina Cass-Gottlieb said the outcome of the legal action is “meaningful” for consumers.

“Eligible users will be contacted by Airbnb within the next 45 days and asked to file a claim,” she said. If they believe they are entitled to compensation and have not been contacted, they can also contact Airbnb to ask questions about their claim.