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

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.

30 of 105 comments (clear)

  1. The EU may not be perfect.. by ddtmm · · Score: 5, Insightful

    But they've got this right. Glad to see them doing the right thing.

    1. Re:The EU may not be perfect.. by sycodon · · Score: 2

      Never used AirBnB.

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

      --
      When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    2. Re:The EU may not be perfect.. by AlwinBarni · · Score: 2

      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 appreciated.

  2. It took this long? by ranton · · Score: 4, Interesting

    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.

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    1. Re:It took this long? by captbollocks · · Score: 4, Interesting

      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.

    2. Re:It took this long? by AmiMoJo · · Score: 4, Insightful

      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.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    3. Re:It took this long? by fazig · · Score: 2

      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 allowed to technically break a law.

  3. Good. by houghi · · Score: 3, Insightful

    If you do not like the laws, do not do business in the country. Can you imagine what would happen if AB InBev (A Belgian-Brazillian company, stationed about 100m from where I live) would start selling beer to 16 year olds because that is what they do in the home countries?
    No matter how stupid the law is, you must follow it and let the people decide what those laws are.

    --
    Don't fight for your country, if your country does not fight for you.
    1. Re:Good. by Anonymous Coward · · Score: 3, Insightful

      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.

  4. Governments should not allow abuse. by Futurepower(R) · · Score: 5, Informative

    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.

  5. Resort fee by ruddk · · Score: 4, Informative

    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. :)

    1. Re:Resort fee by AmiMoJo · · Score: 4, Informative

      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.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Resort fee by houghi · · Score: 2, Informative

      In Europe we are used to pay what we see displayed. You go to a restaurant and if the price says 3EUR for a beer and 12 EUR for a pizza, you pay 15 EUR.

      In the US you see some random number and at the end they have added some numbers and then you need to calculate on top of that how much you are going to pay. (Could still be the same amount)

      And yes, I have heard the excuses that it is difficult because all of the different taxes in the US. If that is true, how come the prices including the taxes are known when you pay?

      As for hotels, I use booking.com and I have have yet to pay more than what was advertised. Even in Spain, where there is a tourist tax, I will see the total before I do a payment. Most things I see is if breakfast is not included. As I do not take breakfast, I do not care.

      The most annoying ones are the airlines who seem to get away with not clearly indicating prices (even in Europe) and even the railroads where they advertise a price, but reserving a seat is X EUR and you MUST reserve a seat (on certain trains).

      --
      Don't fight for your country, if your country does not fight for you.
    3. Re:Resort fee by MeNeXT · · Score: 2

      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 requirements for tourist rentals including, fire evacuation plans, mandatory fire drills with staff training and inspections by the fire department ensuring conformity with the local laws.

      The hypocrisy of this just astounds me. We insist on government intervention to protect the consumer or the participation of local business in financing local communities and oblige them to meet certain requirements such as insurance and then "Oh look shiny Internet thingy is less expensive". If your car gets damaged in an AirBnB client parking spot it's your insurance that pays.

      AirBnB takes commission on both ends and doesn't provide any benefit/help/consideration when things go wrong. I find AirBnB to be more of a scam than anything else. That is my experience with AirBnB.

      --
      DRM? No thanks, I'll just get it somewhere else...
  6. And AirBnB would like very much by rsilvergun · · Score: 2

    if European politicians would just take the bribe^XCampaign Contributions and look the other way.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  7. The US government doesn't care by sjbe · · Score: 5, Insightful

    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 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.

  8. We're an Industrialized Banana Republic Now by CoolDiscoRex · · Score: 4, Insightful

    The third-world of the first-world. The USA has seen better days, and most of us know it.

    1. Re:We're an Industrialized Banana Republic Now by Carewolf · · Score: 4, Funny

      The third-world of the first-world. The USA has seen better days, and most of us know it.

      That is what happens when your country is run by banana republicans.

  9. Prices should include all fees and taxes by sjbe · · Score: 3, Insightful

    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.

    1. Re:Prices should include all fees and taxes by thegarbz · · Score: 2

      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?

    2. Re:Prices should include all fees and taxes by sjbe · · Score: 2

      Sure, resort fees and parking should be made clear if they are optional or rolled in for ease (perhaps an "all-included" price) but tax is not part of the price,

      Tax absolutely is part of the price because they won't sell it to you unless you pay it. Taxes are an expense to the vendor just like any other. If you have an issue with the amount of tax then take that up with your elected representatives. The place for that fight isn't on the receipt.

      it is extra money stolen by a third party.

      Ahh, I get it. You're one of those loonies who actually believes taxes are theft and that somehow our society would be possible without them. Explain to me how we get roads, police, schools, first responders, a military, health care for everyone, a judicial system, public parks, etc without those taxes. If you don't want to pay taxes then go live off in the wilderness as a hermit. When you decide that sucks and want to live in a civilized society with the rest of us then pay your taxes and shut up about it.

      The customer should be made aware of this.

      You seriously think that people in the US aren't aware of how much they pay in taxes? They are freakin' obsessed with that information.

  10. Meanwhile Ajit Pai by Anonymous Coward · · Score: 2, Informative

    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.

    1. Re:Meanwhile Ajit Pai by jellomizer · · Score: 2

      There is only so much time we can protests.
      There is too much evil going on right now, FCC stupidity is on the low end of things at the moment.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  11. Bottom line price only, thx by VMaN · · Score: 2

    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.

  12. Baby formula makers by Anonymous Coward · · Score: 5, Insightful

    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

  13. Re:Stupid as usual by Calydor · · Score: 2

    Please point to one case of this leading to a lower cost and not having to pay a lot more than expected.

    Just one. One will suffice.

    --
    -=This sig has nothing to do with my comment. Move along now=-
  14. Re:ridiculous regulation by mrvan · · Score: 3, Informative

    That's an easy question :-)

    https://en.wikipedia.org/wiki/...

    US is around 19T$, EU is 17T$ and relatively easy to do business in (strong rule of law, some convergence between countries). Next are China at 12T$, but if you find EU too much of a hassle don't even think about it, after that Japan (4T$) and India (2T$), also not easy markets.

    So, if you don't think US is a big enough market, EU is a pretty natural second. But to play ball here, you gotta play by the rules. Which is true across the pond as well, just check out the fines EU banks were hit by in response to (presumably) violating US laws or statutes.

  15. Re:LOOPHOLES by jonadab · · Score: 2

    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. A great many American companies have wording in their terms and conditions that would never fly if actually taken to court. No one is very concerned about this, as long as they don't try to actually enforce them.

    --
    Cut that out, or I will ship you to Norilsk in a box.
  16. Re:LOOPHOLES by godel_56 · · Score: 2

    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.

  17. Re:ridiculous regulation by gravewax · · Score: 2

    How the fuck is being required to show the real price up front a ridiculous regulation, rather than the bait and switch method and hidden fees the US uses?