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Airbnb faces ultimatum to comply with EU's consumer rules

Airbnb Inc. was warned by the European Union to expect a regulatory clampdown unless its terms and conditions and the way it presents holiday-home prices comply with EU standards.

Stephanie Bodoni (Bloomberg)
Tue, July 17, 2018

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Airbnb faces ultimatum to comply with EU's consumer rules Airbnb Inc. was warned by the European Union to expect a regulatory clampdown unless its terms and conditions and the way it presents holiday-home prices comply with EU standards. (Shutterstock/Kaspars Grinvalds)

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irbnb Inc. was warned by the European Union to expect a regulatory clampdown unless its terms and conditions and the way it presents holiday-home prices comply with EU standards by the end of August.

The online platform must present pricing information in a more transparent way and make the distinction between private and professional hosts clearer to consumers, the European Commission said in a statement on Monday.

The company’s terms and conditions need to be made fairer and more understandable to consumers, the EU authority said, urging the company to present changes “swiftly” ahead of a review by regulators.

Read also: European tourist magnets hit back as Airbnb turns 10

“Popularity cannot be an excuse for not complying with EU consumer rules,” EU Commissioner for Consumers Vera Jourova said in a statement. “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.”

Airbnb burst onto the scene a decade ago by persuading millions of people to open up their homes to strangers -- starting a trend for holiday makers looking for an alternatives to hotels. It’s faced criticism, including from landlords, of violating zoning laws and operating as an illegal hotel. Critics have also said abundant short-term rentals drive up housing costs and disrupt neighborhoods.

Airbnb has to either change or remove illegal terms in its terms of service, the commission said. These include that the San Francisco-based company can no longer “decide unilaterally and without justification” which terms remain in effect after a contract is ended, or deprive consumers “from their basic legal rights to sue a host” if they suffer personal harm or other damages, the EU authority said.

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