Airbnb Service Fees Class Action Settlement

Tuesday is the deadline to claim a credit up to $45 in the Airbnb service fees class action lawsuit settlement. Tomorrow is also the deadline to opt out the open settlement.

Airbnb has agreed to settle a class action lawsuit alleging it violated Quebec’s Consumer Protection Act by advertising prices on its website and mobile app but adding charges at checkout. If you made an Airbnb reservation while in Quebec, you may be entitled to benefits from the Airbnb class action settlement.

According to the Airbnb class action lawsuit, Airbnb violated Quebec law by showing consumers one price on its website or app but then added “Service Fees” that tacked on an additional 13 to 17 percent more to the price. These Service Fees were allegedly only listed at the last step before the consumer completed the Airbnb booking.

The Airbnb class action lawsuit points to section 224 of Quebec’s Consumer Protection Act, a legislative amendment that took effect in 2010, which states: “No merchant, manufacturer or advertiser may, by any means whatever … charge, for goods or services, a higher price than that advertised.”

Because Airbnb charged Quebec consumers a higher price than advertised on their websites and mobile apps, the Airbnb service fees class action lawsuit says the company violated the law.

The plaintiff alleges he made a reservation to stay at a condominium in Florida from Aug. 2 through Aug. 8, 2017 and was charged $141 in “Service Fees” that were not advertised at the first step of the transaction. These fees were approximately 12.5 percent of the total price for the accommodations.

He went through the booking process for other Airbnb listings and found that one “Service Fee” listed at the final step of the transaction was approximately 17 percent of the price to book the location.

According to the Airbnb service fees class action lawsuit, Airbnb factors in the costs of other services such as a “Cleaning Fee” at step one in the transaction and should have done the same for the “Service Fees.” The plaintiff says he would not have booked the accommodations with Airbnb if he had seen the true price advertised at step one in the transaction.

“A sufficient nexus exists between the lower price advertised by Airbnb at the first step and the room purchased,” the Airbnb service fees class action lawsuit says. “By advertising its rooms at a lower price at the first step, Airbnb is capable of influencing a consumer’s behavior with respect to the formation of the contract.”

The Airbnb service fees class action lawsuit seeks reimbursement of the amounts that consumers paid in excess of the price advertised on the Airbnb website and mobile app, excluding any taxes.

Airbnb changed its business practices on June 26, 2019 to display all applicable guest fees on the search results page for consumers who access the Airbnb website and mobile app from Quebec. This new practice results in Quebec consumers viewing Airbnb pricing that is “all-inclusive” except for taxes and optional costs.

Airbnb denies the allegations.

Class Members of the Airbnb service fees settlement include Quebec residents who, between the dates of Aug. 22, 2014 and June 26, 2019, and while located in Quebec, made a booking using Airbnb’s website or mobile app and who paid a higher price than the price initially advertised by Airbnb.

Under the terms of the Airbnb service fees class action settlement, Airbnb will provide eligible Class Members a total of $3 million in credits to be used on the Airbnb platform.

The Airbnb service fees settlement was approved on Feb. 3, 2020.

The deadline to opt out of the Airbnb service fees class action settlement has been extended to June 30, 2020.

Who’s Eligible

To qualify for benefits from the Airbnb class action settlement, you must meet the following criteria:

• You must be a Quebec resident;
• You must have used the Airbnb platform at least once from Aug. 22, 2014 to June 26, 2019 for a purpose other than business travel to book an accommodation anywhere in the world;
• The booking must have been for a purpose other than business travel;
• You must have been located in the Province of Quebec at the time you made the booking;
• You have not excluded yourself from this Airbnb service fees class action settlement;
• You must have an active account with Airbnb at the time the credit is issued (i.e., you must not have voluntarily cancelled your account or been suspended from the Airbnb platform due to violations of the company’s Terms of Service, policies or standards.

Potential Award

An Airbnb credit of up to $45.

Eligible Class Members will have the opportunity to claim a credit applied to their Airbnb account. Once applied, the credit will be redeemed automatically at the next checkout.

The Airbnb credits will be distributed pro rata and the value each Class Member will receive depends on the total number of claims submitted.

Proof of Purchase

N/A. Eligible Class Members will receive an email that will include a link to claim the Airbnb credit.

Claim Form Deadline

6/30/2020

Case Name

Martin Preisler v. Airbnb Ireland UC, et al., Case No. 500-06-000884-177, in the Superior Court of Quebec, Canada.

Final Hearing

5/6/2020

Settlement Website

lpclex.com/airbnb/

Claims Administrator

LPC Avocats
Mtre Joey Zukran
276 Saint-Jacques Street, Suite 801
Montreal, Quebec, H2Y 1N3
(514) 379-1572
Email: [email protected]

Class Counsel

Mtre Joey Zukran
LPC AVOCATS

Defense Counsel

Me Jean-François Forget
Me Yves Martineau
STIKEMAN ELLIOTT LLP

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