Airbnb agreed to pay $6 million as part of a class action settlement resolving claims it charged unlawful service fees on Canadian properties.
The settlement benefits Canadians who booked an Airbnb between Oct. 31, 2015, and June 25, 2019, for non-business purposes.
Residents of Quebec are not included in this settlement due to a separate $3 million settlement reached in the province.
Airbnb allows homeowners to host customers at their property as an alternative to hotel stays. According to a letter from the founders that was posted on Airbnb’s website, the company’s core ideas include community, creativity, and responsibility.
Despite Airbnb’s popularity and inspirational values, the company may have taken advantage of Canadian consumers through illegal “double ticketing.”
An Airbnb customer filed a class action lawsuit against the company in 2017, alleging he was charged more than the advertised cost for a property due to added service fees. These fees took the nightly cost from $108 to $122, the plaintiff contended.
According to the Airbnb class action lawsuit, this up-charge counted as “double ticketing” — where a customer sees two prices and is charged the higher one — and violated Canada’s Competition Act. Under the Competition Act, businesses found guilty of double ticketing could pay up to $10,000 and face a year’s imprisonment.
A judge agreed with the plaintiff and found Airbnb guilty of double ticketing. Airbnb later attempted to appeal the decision.
Airbnb hasn’t admitted liability despite the court decision against it. However, the company agreed to pay $6 million to resolve these allegations.
Under the terms of the settlement, Class Members can receive credits of up to $45. Consumers may receive fewer credits depending on the number of claims filed with the settlement.
According to the settlement website, credits should be distributed by May 27, 2022.
Credits from the settlement can be used to book with Airbnb and are one-time use only, non-transferable, and non-refundable. Credits expire 24 months, or two years, after they are issued to Class Members.
The settlement was approved by the Federal Court of Canada on Nov. 19, 2021.
In order to benefit from the Airbnb service fees settlement, Class Members must click the link they received via e-mail; this will allow access to the claim portal, where claimants can verify their eligibility.
These claims must be submitted by March 28, 2022.
