BRUSSELS (Reuters) – The European Union on Monday told Airbnb to align its terms and conditions with the bloc’s consumer rules or face actions by national consumer agencies, after a review of the platform short-term rental revealed certain violations.
Some of Airbnb’s terms and the way it presents its prices breach the Union’s Unfair Commercial Practices Directive, the Unfair Contract Terms Directive and the Jurisdiction in Civil and Commercial Matters Regulation, said the European executive.
San Francisco-based Airbnb and similar rental platforms, which help landlords rent out their home or room for short periods of time, have grown in popularity in recent years due to their competitive pricing compared to hotels.
“But popularity cannot be an excuse for not complying with EU consumer protection rules. Consumers need to easily understand (…) how much they are expected to pay for services and have rules fair, for example in the event of cancellation of the accommodation by the landlord,” EU Justice Commissioner Vera Jourova said in a statement.
The company has until the end of August to present its proposals to respond to the criticisms which will then be examined by the Commission and national consumer protection authorities. He could face fines if he fails to follow EU rules.
The EU executive said Airbnb should state whether the accommodation is offered by a private or a professional, provide price details clearly and change its terms of service to make them fairer for consumers.
Airbnb said it strives to be as transparent as possible.
“Customers are informed of all charges, including service charges and taxes, before confirming their decision to book a listing, and we will work with authorities to clarify the issues raised,” the company said in a statement. .
The issue came to light after national consumer protection agencies in June reviewed Airbnb’s business practices published in different languages.
Rental platforms have been criticized for driving up property prices and contributing to a housing shortage in Paris, Berlin, Amsterdam and other major cities.
Reporting by Foo Yun Chee; Editing by Adrian Croft
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