Airbnb Faces A$30 Million Penalty After Misleading Pricing Practices

In a recent development, the Australian Federal Court has ruled that Airbnb must pay a total of A$30 million ($20.2 million) in penalties and compensation for deceptive accommodation pricing practices, according to the country’s competition regulator.

Between January 2018 and August 2021, Airbnb Ireland, operating in Australia, admitted to misleading consumers by displaying prices solely in U.S. dollars without clearly indicating the local currency, as revealed by the Australian Competition & Consumer Commission (ACCC). This failure to specify the currency led to consumers being charged more than anticipated, preventing them from making well-informed booking decisions.

Gina Cass-Gottlieb, Chair of the ACCC, commented on the situation, stating, “By paying in U.S. dollars, these consumers were charged more than they expected, and were deprived of a chance to make an informed decision about whether to make the booking because of this misleading conduct.”

Susan Wheeldon, Airbnb’s country manager for Australia and New Zealand, acknowledged the issue and highlighted Airbnb’s cooperation with the ACCC. She clarified that the final payment amount displayed the applicable currency code, including the U.S. dollar, once guests confirmed their intention to proceed. Wheeldon expressed Airbnb’s regret, saying, “While only a very small percentage of Australian guests are believed to have been impacted, we are disappointed that this happened. Airbnb would like to apologize to those guests.”

The penalty stems from more than 2,000 complaints filed by Australian customers who experienced being charged in U.S. dollars during the specified period. In response to the complaints, the ACCC initiated proceedings against Airbnb and its Irish unit in June 2022, alleging that they made misleading representations to consumers regarding the currency for Australian accommodation bookings.

This ruling serves as a reminder of the importance of transparent pricing practices in the online marketplace, emphasizing the need for companies to provide accurate information to consumers to enable well-informed decision-making.

(Note: The currency conversion rate is provided for reference purposes: $1 = 1.4804 Australian dollars)

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