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Australian regulator sues Airbnb for allegedly misleading customers on pricing -Breaking

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© Reuters. In this illustration, taken February 27, 2022, the Airbnb app can be seen on a smartphone. REUTERS/Dado Ruvic/Illustration

(Reuters.) Australia’s competition regulator Wednesday stated that it was pursuing proceedings against Airbnb Inc before the Federal Court in Australia. The company is accused of misleading customers about the pricing of accommodation.

Between January, 2018 and August, 2021, the U.S.-based vacation rental company misled consumers in Australia by displaying prices for accommodation using only the ‘$’ sign, without clarifying that the prices were in U.S. dollars and not in the local currency, the Australian Competition & Consumer Commission (ACCC) said in a statement.

Airbnb has not yet responded to a Reuters comment request.

ACCC stated that it seeks pecuniary sanctions and orders to compensate individuals who, among other things were misled regarding pricing.

According to the regulator, when Airbnb was complaining about pricing they said that the prices displayed were in U.S. Dollars because the customer had chosen that currency. This is often incorrect.

Gina Cass Gottlieb, ACCC Chair, said that Airbnb’s misleading conduct prevented consumers from making an informed decision on whether or not to use the Airbnb platform for their vacation accommodation.

In addition to having to pay higher prices than anticipated, consumers charged in U.S. Dollars also ended up paying currency conversion fees from their credit card company.

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