Airbnb ordered to pay $15 million in penalties

Australia's Federal Court has ruled that Airbnb Ireland must pay $15 million in penalties for allegedly engaging in misleading currency practices. In addition, the company will provide compensation of up to $15 million to approximately 63,000 consumers who paid for accommodations in U.S. dollars instead of Australian dollars.

According to the Australian Competition and Consumer Commission, Airbnb has admitted to misleading consumers about the currency they were using for payment between January 2018 and August 2021. As a result, consumers were charged more than they expected and were not given the opportunity to make an informed decision regarding the booking price.

Gina Cass-Gottlieb, chair at Australia's consumer watchdog, emphasized the impact of this misleading conduct on consumers, stating, "By paying in U.S. dollars, these consumers were charged more than they expected to pay, and were deprived of a chance to make an informed decision about whether to make the booking because of this misleading conduct regarding the price."

Over 2,000 complaints were filed by Australian consumers regarding being charged in U.S. dollars. The average compensation payment is estimated to be around $230 per consumer.

Airbnb Ireland, which operates the Airbnb website and apps for users in Australia, is incorporated as an unlimited company in Ireland.