Airbnb to pay out $15m to Australian customers on top of $15m fine

Australian customers affected by a controversial practice will get to share in $15 million in compensation as the consumer watchdog slaps on an additional eye watering fine.

A Judge has ordered a well known company to pay a $15m fine for misleading its Australian customers. Picture: Supplied.

Airbnb will pay out Australian customers $15 million on top of a fine of the same amount after it was found to have mislead Australian customers.

The Federal Court ordered the online accommodation platform to cough up the $30 million after it was found to have made false or misleading representations to users in Australia by failing to let customers know that prices listed on the site were in US dollars rather than Australian dollars.

Airbnb acknowledged that it displayed only a dollar sign without indicating which currency on more than 63,000 listings between 1 January 2018 and 30 August 2021.

The company admitted to misleading Australian customers by showing prices in US dollars.

Customers were left unaware that prices were in USD until they reached the checkout page, with the difference between the two currencies causing the cost to leap up.

Due to the confusion, Airbnb received over 2000 complaints, but the company said that customers had chosen to pay the US dollar rate even though most were unaware they had.

Federal Court Justice Brendan McElwaine said Airbnb’s conduct was “misleading or deceptive or likely to mislead or deceive”.

“The affected users ... suffered damage in several ways,” the written judgement said.

“They were deprived of the opportunity of making an informed choice of accommodation.

“All prices displayed in USD appeared lower than if they had been displayed in AUD.

“Thus, the relevant users paid more than they expected to pay for the accommodation selected.”

Airbnb was ordered to pay the $15m fine within 30 days as well as cover $400,000 in costs, the company also said they would provide compensation to eligible customers which could equal another $15m.

The company must also bring in a new complaints system, a consumer law compliance program and provide more staff training.

More than 63,000 customers were affected by the incorrect display.

Airbnb’s Australia and New Zealand country manager Susan Wheeldon in a statement said the company was sorry for misleading any customers.

“While only a very small percentage of Australian guests are believed to have been impacted, we are disappointed that this happened,” she said.

“Airbnb would like to apologise to those guests.”

Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said she was happy Airbnb had agreed to reimburse customers on top of paying the fine.

“We are pleased with the undertaking by Airbnb to pay compensation, which provides a meaningful outcome for the affected consumers,” she said.

“Eligible consumers will be contacted by Airbnb within the next 45 days and invited to lodge a claim, but they can also contact Airbnb to ask about their claim if they think they are eligible.”