Airbnb to pay $6M in double ticketing settlement; some customers to receive credit

Have you tried to book a vacation rental on Airbnb and noticed the final price was higher than advertised? If so, you may be eligible for company credit.

Since 2017, Airbnb has faced a class-action lawsuit from Vancouver man Arthur Lin, alleging the company was guilty of double ticketing. Double ticketing is the practice of showing a buyer two different price points but charging them the higher price at checkout. The practice contravenes the Canadian Competition Act.

Lin brought his claims after trying to book a vacation rental at the displayed price of $108 per night. After booking, Lin found the price had jumped to $122 because of service fees.

Typically, double ticketing applies to prices displayed in retail stores where a lower price is displayed on a product, in company promoted sales materials or an in-store or point-of-purchase display.

A judge had ruled on Lin’s case saying that laws around double ticketing should also cover the online world. Airbnb appealed the decision.

The suit was later settled for $6 million and a separate settlement in Quebec was reached for $3 million. Airbnb does not have to admit any liability.

Bookings through the popular rental service now show the all-inclusive price excluding applicable taxes at every step of the search and booking process. This was not required as part of the settlement but instead was done on the company’s own accord.

Canadian residents outside of Quebec who booked an Airbnb between Oct. 31, 2015, and June 25, 2019, could be eligible for a $45 credit. Those residing inside Quebec will have to go through a separate settlement process.

Members of the class action will be contacted through email to access the claim and verify their eligibility. The deadline to make a claim is March 28, 2022 and the credits are redeemable within 24 months. Claims will be administrated by the accounting firm Deloitte.

The credit and be redeemed automatically on future bookings through Airbnb.

@SchislerCole
cole.schisler@bpdigital.ca
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