There’ll be no more surprise charges or hidden fees on Airbnb following an ACCC probe into concerns of misleading pricing practises.
The Australian Competition and Consumer Commission (ACCC) found that the consumer-to-consumer accommodation site had failed to adequately disclose fees such as mandatory Service Fee and a Cleaning Fee since November 2012.
The fees were required on Search Results pages and Accommodation Listing pages on its website, mobile site and apps accessible in Australia.
Its online peer, eDreams, was pulled up for failing to adequately disclose fees on bookings pages from January to December 2014 and for withholding a total price inclusive of the mandatory Service Fee and Payment Fee.
Rod Sims, ACCC Chairman, said drip pricing practises can impact local competition and result in higher prices than advertised for consumers.
“The law does not prevent traders from charging fees. However, it does require that fees are disclosed clearly to avoid consumers being misled.”
Rod Sims, ACCC Chairman
Airbnb and eDreams have since accepted and acknowledged concerns and have since undertaken to improve their practises on their sites.
The pair will incorporate mandatory fees into displayed prices or disclose them more prominently on key pages during the booking flow.
ACCC said changes will ensure users have access to clearer and accurate price information up front.
