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The EU Would Very Much Like Airbnb To Know That the Rules Are Different in Europe (fortune.com) 105

Airbnb is facing fresh regulatory pressure in Europe. But this time it's not about the short-term home rental platform's core business model -- it's about its terms and conditions, and the way the company presents pricing to consumers. From a report: On Monday, the European Commission and a number of EU consumer watchdogs accused Airbnb of breaking consumer law. If the company does not change the way it operates by the end of August, then it could face legal action. Specifically, the regulators said Airbnb must show people total prices up-front that include all charges and fees, and it must clearly tell customers whether a property is being offered by a private host or a professional. The American company's terms and conditions are illegal under EU law for a variety of reasons, the regulators added. For example, the company tells people in the EU that they cannot sue a host in cases of personal harm or other damages, and it claims it can unilaterally change its terms and conditions without giving customers a warning and the option of cancelling their contracts. These sorts of terms might fly in the U.S., but they're banned in Europe.
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The EU Would Very Much Like Airbnb To Know That the Rules Are Different in Europe

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  • by ddtmm ( 549094 ) on Monday July 16, 2018 @09:48AM (#56956718)
    But they've got this right. Glad to see them doing the right thing.
    • Meanwhile Ajit Pai (Score:2, Informative)

      by Anonymous Coward

      Meanwhile in the USA, if you want to complain about a telco screwing you over, it now costs $225 to file a complaint with the FCC. Non-refundable. There use to be an informal free complaint system, Ajit has done away with that.

      https://www.extremetech.com/internet/273212-fcc-may-gut-informal-complaint-process-force-consumers-to-pay-225-fee

      Ajit Pai again.

    • by sycodon ( 149926 )

      Never used AirBnB.

      If this is how they operate, I'm not likely to use them ever.

      • Re: (Score:2, Informative)

        by GNious ( 953874 )

        Just tried using them (trip in August).
        Reading their rules and regs, saw various potential options for hosts to scam guests.
        Booked trip, host immediately tried to change price etc (city pretty booked due to intl event, easy scam).
        I refused, told the host to cancel so I'm not stuck with fees etc.
        Host refuses to cancel, since then he's not paid anything.
        AirBnB? They are not picking up, no matter how I'm trying to contact them. Only option is to do a chargeback on the CC used for the original booking, which je

    • Agree, maybe wealthy people can afford lawyers and servants constantly checking all the contracts for them, but for an ordinary person to have a family and to check in detail all the contracts one has to deal with to goon in life would practically require giving up the little free time, which is left including sleep.

      Personally I do not require much:
      - the truly total price
      - not voided right to sue
      - required consent for any contract changes
      - default not sharing personal information
      would be really apprec

      • Sounds like you want EU-style legal protections then. Which would suck if you're not an EU citizen.

        What's the size of the possible EU market compared to the US market? 100 million higher, or 150 million higher? I forget which.

  • It took this long? (Score:5, Interesting)

    by ranton ( 36917 ) on Monday July 16, 2018 @09:51AM (#56956736)

    These violations seem easy to identify, so why has it taken this long for the EU to act? I cannot tell from the story how long Airbnb has operated in the EU but they do mention other EU legal battles in the past so I'm guessing it has been many years. It's not like Airbnb is a small company that could have flown below their radar.

    • by captbollocks ( 779475 ) on Monday July 16, 2018 @09:58AM (#56956802)

      Probably because they have lots of worse behaving US companies to contend with.

      Try one of the big travel booking companies that closed their European office and thought it was ok to just lock the doors without notice and not pay any staff any money at all nor even give the staff termination notices which meant the staff couldn't even claim social security.

    • by AmiMoJo ( 196126 ) on Monday July 16, 2018 @10:23AM (#56956994) Homepage Journal

      The EU generally doesn't investigate stuff like this itself, it relies on member states' own consumer watchdogs to do it and then bring the case to them if it looks like an EU wide issue. Unfortunately that does mean that it can be a bit slow.

      • by fazig ( 2909523 )
        On top of that national consumer protection institutions usually don't do a lot on their own either.
        First they need people to complain about something. Then they investigate the matter, maybe file class action lawsuits or take other legal routes. But that step with people complaining is crucial.
        And yes, action/reaction taking too long can become a problem, because of customary laws. If things were handled that way for such a long time that they can be considered to be normal by everyone, they're sometimes
        • Also, enforcement tends to be at city / district level rather than national level, and councils tend to be more concerned about them running unlicensed hotels, paying residential property tax rather than hotel tax, and taking properties away from local people.

    • by Vulch ( 221502 )

      There has probably been a lot going on in the background to try and sort things out. That hasn't worked so it's now turned into a public "Fix this or else" situation. Ultimatums are rarely the first means of redress.

  • by Anonymous Coward

    "These sorts of terms might fly in the U.S., but they're banned in Europe."

    Maybe that is an indication that, those US laws have more LOOPHOLES to exploit (compared to EU), for companies like AirBNB, Uber, etc?

    • by Futurepower(R) ( 558542 ) on Monday July 16, 2018 @10:09AM (#56956900) Homepage
      AirBnB "tells people ... that they cannot sue a host in cases of personal harm or other damages, and it claims it can unilaterally change its terms and conditions without giving customers a warning and the option of cancelling their contracts."

      The U.S. government should not allow companies to manipulate, trick, and otherwise abuse customers.

      "... the [EU] regulators said Airbnb must show people total prices up-front that include all charges and fees, and it must clearly tell customers whether a property is being offered by a private host or a professional."

      It is shocking and extremely unpleasant to see how much dishonesty there is in U.S. advertising, and the extreme weakness of the U.S. government in preventing abuse.
      • by sjbe ( 173966 ) on Monday July 16, 2018 @10:21AM (#56956976)

        The U.S. government should not allow companies to manipulate, trick, and otherwise abuse customers.

        They shouldn't but they routinely do. The love to hide behind the fiction that many contracts are somehow not one sided and abusive because they are theoretically (though not really) optional.

        It is shocking and extremely unpleasant to see how much dishonesty there is in U.S. advertising, and the extreme weakness of the U.S. government in preventing abuse.

        Well, one party has been trying to do something [consumerfinance.gov] about it, albeit meekly and in a pathetically limited way. The other party screams loudly that regulation is the devil no matter how sane the regulation might actually be and works tirelessly to permit companies to behave as badly as possible. End result is that we get screwed unless we are rich enough to fight the system.

        • Comment removed based on user account deletion
        • by Anonymous Coward

          Half the people in the US are cool with companies doing whatever the hell they want, because they believe people are smart enough to ban or boycott companies that don't fall in line.

          Then they proceed to call the other half stupid for believing opposite of what they do.

          So who's the real stupid one? :P

        • The love to hide behind the fiction that many contracts are somehow enforceable

          FTFY. You can't sign away your rights. ... Well in most places in the world you can't sign away your rights. I'm not sure what batshit insane supreme court sitting decided you can force arbitration on people.

          • FTFY. You can't sign away your rights.

            Sure you can and people do it all the time. You can voluntarily give up your rights if you want to - you just cannot be forced by a court into doing so. A right that is not exercised or that cannot be exercised is a right that is given away. A right that you cannot defend is a right you effectively do not have. Slavery was outlawed in the 1860s but for all practical purposes black people didn't even gain even the semblance of equal rights for another hundred years. They couldn't defend their rights so

            • Sure you can and people do it all the time. You can voluntarily give up your rights if you want to

              Actually no you can't. In most places of the world you can sign what you want but your rights doesn't magically disappear. That's the very definition of an unenforceable contract and many if not most contracts are full of unenforceable clauses which get through out during court cases constantly. Just because you sign something doesn't mean you won't exercise or defend that right if needed.

              Their argument is that it isn't forced.

              Their argument misses the incredible one-sided nature of contracting parties which is precisely why many countries defen

              • Actually no you can't. In most places of the world you can sign what you want but your rights doesn't magically disappear.

                You're talking legal theory. I'm talking real world outcomes. In theory you are right. In practice you are routinely incorrect. A right that you voluntarily give up or that you cannot defend in a court room is de-facto a right you don't have. There also is the problem of rights being defined in such a way that they no longer have any meaning. For example let's take the 4th amendment right "against unreasonable searches and seizures". The key word there is "unreasonable" because all they have to do to

      • by Anonymous Coward

        It is not manipulating, tricking or abusing customers –it is a disruptive business idea!

        Everyone knows that government needs to stop trying to force heavy handed over-reaching regulations on the poor companies. With all this regulation, how do anyone expect innovation? The free market will regulate itself. Customers will vote with their money. Dishonest advertising is not lies, it is alternate facts.

        Yes, when I wrote all this my keyboard was dripping with sarcasm if it didn't come through. I am happy

      • The U.S. government should not allow companies to manipulate, trick, and otherwise abuse customers.

        Any U.S government that stopped companies manipulating, tricking, and otherwise abusing customers would be voted out of office for being cawmanusts. Because freeduhm and markets!

    • by Anonymous Coward

      It's not legal in the US to change the terms of a contract unilaterally. There are many things in many TOS that aren't enforceable.

      • Many things are also not enforced until a grievance has been had. For example, my wife works at an Asian supermarket in Oregon where there are laws for the number of sick hours given, and how they are deducted. By law they are required to be deducted in increments of 1 hour, but the employee handbook states that an employee must take them in increments of 2 hours. No amount of complaining to the Oregon Bureau of Labor would get them to do anything until someone had been denied taking an odd houred sick leav

    • by jonadab ( 583620 )
      It's more of a fundamental difference in how civil law works. In America, you can put wording in your terms and conditions that ostensibly requires your customers to bend over backwards and kick themselves in the gonads while whistling Dixie, for three hours every Sunday morning. Your customers will then proceed to not bother to read the terms and conditions and not actually do any of the weird junk said terms and conditions supposedly require. As long as you don't try to actually enforce any of it, it'l
      • It's more of a fundamental difference in how civil law works. In America, you can put wording in your terms and conditions that ostensibly requires your customers to bend over backwards and kick themselves in the gonads while whistling Dixie, for three hours every Sunday morning. Your customers will then proceed to not bother to read the terms and conditions and not actually do any of the weird junk said terms and conditions supposedly require. As long as you don't try to actually enforce any of it, it'll probably never go to court, and your terms and conditions will probably never be officially ruled unenforceable.

        Under Australian consumer law it's unlawful to even make some of these claims, like "no refunds for any reason" and the ACCC will take you to court for even trying.

  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Monday July 16, 2018 @09:55AM (#56956766)
    Comment removed based on user account deletion
    • Re: (Score:2, Insightful)

      American companies are increasingly accustomed to laws supporting their profit margin, not acting against it.
      • Re: (Score:3, Insightful)

        by Anonymous Coward

        I'm a reasonable person, but am beginning to feel actively hostile towards the behaviour of many US companies, which is not a good sign. Coupled with Trump basically seeing how many countries he can insult, I suspect it's not long now before there is a consumer-led major boycott of all US goods and services.

        • by Anonymous Coward on Monday July 16, 2018 @11:03AM (#56957330)

          Perhaps you missed this one:
          https://www.nytimes.com/2018/07/08/health/world-health-breastfeeding-ecuador-trump.html

          World Health Organizations wants to encourage breast feeding. US milk formula lobby opposed it. So USA tries to remove the wording encouraging breast feeding. Fails. US then threatens the bill sponsor, Equador, with military and trade sanctions to force them to stop sponsoring the bill! Equador withdraws the bill.

          Russia then sponsors the bill, USA shuts up, says nothing, lets the bill pass.

          US starts a trade war with Canada, not over the milk exports (there's no such thing as fresh milk exports, its too expensive to ship *chilled* milk long distances), but milk *protein* exports. The same group of companies, the same type of product.

          US has a trade *surplus* with Canada, and USA screws it over on things like pharmaceuticals import bans. Yet it starts a trade war over whey protein.

          So the current pecking order is Russia > US Milk Powder Companies > Canada > Nursing Mothers

    • save that idea when it's time Trans-Pacific Partnership to die again.

  • Resort fee (Score:5, Informative)

    by ruddk ( 5153113 ) on Monday July 16, 2018 @10:09AM (#56956902)

    We are not used to that.
    The whole:” the hotel is 299 pr night”
    But then there’s the:
    Resort fee, that’s another 50 pr night
    Oh the tourist tax, that’s another 10 pr night
    Ah you want to park your car? That’s another 25 or night.
    And of course that’s without taxes.

    And if you are using a hotel search engine, expect only the room price to be listed so you still have to do the calculations yourself.

    I have learned to research it when I plan my vacations so it’s not a problem, just annoying. :)

    • by sjbe ( 173966 ) on Monday July 16, 2018 @10:25AM (#56957012)

      I have learned to research it when I plan my vacations so it’s not a problem, just annoying.

      It is annoying but it is also a problem. It permits de-facto false advertising of prices. The price should be the price. Taxes, fees, markups, etc should all be rolled in, whatever they happen to be. I don't really care what the tax is in your jurisdiction - I just care what the out the door price is and that is what I should be able to compare. If this makes businesses under the jurisdiction of some local government less competitive then they should petition to have the taxes reduced.

      • Recently in Oregon with recreational marijuana, they will sell you a gram for $5.00, then under that they list out how much local and state taxes are already included. This way the price you see advertised is the correct price, and you get to know how much of it is taxes.

        • Recently in Oregon with recreational marijuana, they will sell you a gram for $5.00

          You have got to be shitting me! Are you saying the only people in the USA with any sense are the pot dealers in Oregon?

    • Re:Resort fee (Score:5, Informative)

      by AmiMoJo ( 196126 ) on Monday July 16, 2018 @10:27AM (#56957038) Homepage Journal

      The rule in the EU is that the price advertised must be the price you pay for everything you would reasonably expect, including things like taxes and random fees. Parking might be included sometimes, it depends what it is you are booking (e.g. airline tickets won't include airport parking).

      They also can't get away with advertising offers where there are only one or two available and the rest cost much more, aka bait and switch. Comparison prices can show them and let you book them, but they can't do billboards or TV ads for them.

      The next step is to ban comparison sites and search engines from pressure selling to you. A lot of them claim to only have a couple of rooms left or only hold the flight for 1 minute.

    • Re: (Score:3, Informative)

      Comment removed based on user account deletion
      • by pjt33 ( 739471 )

        I've learnt with booking.com to check for cleaning fees on top of the base price. They seem to be quite common in France and Spain, at least, and in one case would have doubled the cost of the room if I hadn't noticed and discarded that particular apartment.

    • by MeNeXT ( 200840 )

      Compared to AirBNB where the accommodations advertised are inaccessible, not what as advertised or plain unlivable and you are left empty handed with a company with couldn't care less. You are left thousands of dollars out of pocket stranded and abandoned.

      In most jurisdictions you are still liable for the tourist tax since it is imposed by the local government. If the tax is not collected it can result in the unit not being available when you arrive.

      Most jurisdictions in North America have fire safety requi

    • Hotels are a regulated market with heavy taxing and complex rules which involve things like the customers security. Airbnb is pretty much the opposite. The problem of it in Europe is that its creating a bubble and too much speculation in the market. Airbnb and Uber are not rwgulated and they are unfair competition to established businesses. If they cant follow the law terminate their opeeations.
  • This one is so obvious that it's surprising that the rule is not applied in all developed countries. On airbnb, the daily rate is shown but it can be easily doubled after cleaning and airbnb fees are added to the original price.
  • by rsilvergun ( 571051 ) on Monday July 16, 2018 @10:21AM (#56956972)
    if European politicians would just take the bribe^XCampaign Contributions and look the other way.
  • by CoolDiscoRex ( 5227177 ) on Monday July 16, 2018 @10:23AM (#56956996) Homepage
    The third-world of the first-world. The USA has seen better days, and most of us know it.
  • by VMaN ( 164134 ) on Monday July 16, 2018 @10:54AM (#56957262) Homepage

    The amount I have to pay is the only price that I'm interested in. That goes for ALL purchases.

    A breakdown that shows me how much of that money goes to pay employees toilet paper and various taxes is nice, but ultimately a total irrelevance unless I can use them for deductions etc.

    Taxes that a company has to pay isn't interesting to me. I don't care. And the beauty is that if everyone lists full price, nobody is at a pricing disadvantage.

    • by mccalli ( 323026 )
      Displaying the full price with tax seems correct, but it is interesting to see a break down. It allows you to put pressure on those taking them.

      Random example - petrol tax in the UK. Petrol is taxed at £0.5795 per litre fuel duty plus a further 20% VAT, and the price per litre at the moment is around £1.281. That means a majority of the price of a litre of petrol is tax. Whether this is right or wrong is not the point of this comment - there are arguments either way. It is, however, quite ill
      • by Calydor ( 739835 )

        Put it on the receipt, don't make it a math exercise before you pump.

        If you have to put 1.45 Euro per liter on the counter once you're done pumping, it doesn't matter right then and there whether 20 or 25 cents of those are some kind of tax. You need to have THAT MUCH MONEY on your person (or in your bank account if paying with credit card) at that moment in time.

        • by mccalli ( 323026 )
          Totally agreed. It's interesting background information, but it shouldn't be the thing you see first.
      • There is no law saying it is illegal to show the breakdown, just that the total price must be displayed up front. you can still itemise every tax, every fee and make that clearly visible and many places do. In Australia we also require total price upfront, but GST, fees etc are normally broken down in the invoice/bill so nothing is hidden, you just don't have to wait till you are half way through a purchase to work out what the fuck you have to pay.
    • A breakdown that shows me how much of that money goes to pay employees toilet paper and various taxes is nice, but ultimately a total irrelevance unless I can use them for deductions etc.

      The Insightful part missing from other comments [well, cannot mod]

    • This so caught me out in the USA. I literally had a dollar on me, got like a chocolate bar walked up to the counter and then couldn't buy the damn thing because I only had a dollar and the damn thing had a dollar on the price tag but somehow that offer and payment was unable to be reconciled.

      • by dave420 ( 699308 )

        I love the idea of dollar stores in places like that - walk in with a dollar and can't afford anything. It's insanity!

  • Post to cancel mod.
  • So long as you have an army of corporate attorneys in your pocket, you're pretty much free to do whatever you want to whomever you want in the Good'ole U. S. of A.

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