EU cracks down on Airbnb with demands for change in pricing and refund policy

Rental company has until the end of next month to provide "detailed solutions" to problems highlighted by European consumer authorities

The EU has given holiday rental firm Airbnb seven weeks to change its terms and conditions in order to comply with consumer rules and be more transparent around pricing.

The European Commission and EU consumer authorities said on Monday that Airbnb’s current pricing presentation and a number of its terms do not comply with various regulations, including the unfair commercial practices directive.

As a result, the EU has “demanded from Airbnb a number of changes”, including a change in the way it presents price information, and more clarity in the company’s policy on refunds, compensation and damage claims.

The EU said Airbnb should 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, if it is not possible to calculate the final price in advance, clearly inform the consumer that additional fees might apply.

In addition, the commission said Airbnb needs to make it clear whether an offer is made by a private host or a professional, as different consumer protection rules may apply, and said the firm cannot deprive consumers from their basic legal rights to sue a host in case of personal harm or other damages.

The EU is also demanding that the firm provide an easily accessible link to the online dispute resolution platform on its website, along with “all the necessary information related to dispute resolution.

Airbnb now has until the end of August to propose “detailed solutions”, the EU said. If the proposals are not considered satisfactory by European authorities, enforcement measures may be taken.

Vera Jourova, the European commissioner for justice, consumers and gender equality, said: “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.

“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.”

A spokesperson for Airbnb said: “We take this issue seriously and are committed to being as transparent as possible for our community. Guests are made aware of all fees, including service charges and taxes, prior to confirming their decision to book a listing, and we will work together with the authorities to clarify the points raised.”