This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
The European Union warned Airbnb on Monday that its business practices must comply with the EU’s regulations, after a review of the home-sharing company’s terms and conditions reportedly found several violations.
Specifically, Airbnb is under fire for the way it presents its rental prices, and some of the San Francisco-based startup’s other terms were found to be in violation of the EU’s unfair commercial practices directive, the unfair contract terms directive and the regulation on jurisdiction in civil and commercial matters, an EU executive told Reuters.
The EU wants Airbnb to clarify on its site whether a rental is offered by a private individual or professional company, as well as making its pricing more transparent and making its terms of service fairer and easier to understand for its European customers. For example, Airbnb should not prevent customers “from their basic legal rights to sue a host” if they suffer personal harm or other damages, the EU said, according to Bloomberg.
Airbnb has until the end of August to present proposed changes to the EU Commission’s criticisms, or it could face major fines for not complying with the regulations.
“Popularity cannot be an excuse for not complying with EU consumer rules,” EU Justice Commissioner Vera Jourova said in a statement. “Consumers must easily understand… how much they are expected to pay for the services and have fair rules for example on cancellation of the accommodation by the owner.”
Airbnb contended that for the most part, its pricing model is transparent.
“We take this issue seriously and are committed to being as transparent as possible for our community,” Airbnb said in a statement to Bloomberg. “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.”
Featured image by Carl Court/Getty Images.
Know before you go.
News and deals straight to your inbox every day.
NEW INCREASED OFFER: 60,000 Points
TPG'S BONUS VALUATION: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards