Montreal Gazette

Quebec lawyer spearheadi­ng class action over fees

- KEVIN MIO kmio@montrealga­zette.com twitter.com/kevmio

A Quebec lawyer is arguing that service fees added to the final price of Airbnb rentals contravene­s the province’s Consumer Protection Act and is asking the court to approve a class-action lawsuit against the company.

Joey Zukran, the lawyer spearheadi­ng the lawsuit, says that “service fees” added to the nightly rental rate violate the Quebec law.

Zukran is representi­ng Montrealer Martin Banoon, who recently booked a six-night stay in Florida and was surprised to see his room rate jump from the $199 originally quoted to $224 per night.

Even though the room was booked in the United States, the Quebec law applies, Zukran says. Sections 54.1 and 54.2 of the act state that a “distance contract is deemed to be entered into at the address of the consumer.”

“A company like Airbnb that has over 800,000 users in Quebec, and does business in Quebec, they (should) know that the law is going to apply to them,” he said. “They know that they have to respect the law in Quebec.”

Zukran says the fees charged by Airbnb are in violation of the Quebec Consumer Protection Act, specifical­ly paragraph C of Section 224, which reads that no merchant can “charge, for goods or services, a higher price than that advertised.”

In Quebec, hidden fees like the service charge must be disclosed in the initial price quotes to consumers.

Banoon says he booked the stay in Florida as a surprise vacation for his sister in early August.

“I booked the day before we left. I found this nice listing in Florida, I booked it, we went and had a great time,” Banoon said. “The price was fair.”

He said that when he got back, he took a closer look at the bill and only then did he notice the service fee added to the nightly rate.

“I see on the price of the booking that there was this service fee on it,” he said. “I didn’t really understand what it was.”

He says he didn’t notice the increase because he assumed that it was just taxes being added to an online transactio­n, something he is accustomed to.

“They showed a total that looked more or less (like) the price,” he said. “I shop a lot online and you are used to coming to the total and the price going up by 10 or 15 per cent, because usually they are adding the taxes. And (the fee) is right in that range.”

Banoon says that based on research he and Zukran have done, the rate for the fee appears to vary.

“We really did a little bit of research and prices are advertised without this fee, and then right before the end of the booking, they add it,” Banoon said, adding that the rate for the fee can vary.

Similar cases have been heard in Quebec, specifical­ly against companies like Ticketmast­er and StubHub.

Zukran says the lawsuit is seeking compensati­on for the service fees paid by users, punitive damages of $100 per user and to force Airbnb to change its website to comply with Quebec law.

“Sometimes it’s because the company didn’t know about the law, but I would be very surprised if a company like Airbnb” didn’t know about this, Zukran said. “It’s something they ought to have known.”

The Montreal Gazette reached out to Airbnb, and a company spokespers­on replied that the company would not comment on any ongoing litigation.

… prices are advertised without this fee, and then right before the end of the booking, they add it.

 ?? JOHN MAHONEY ?? Lawyer Joey Zukran, right, with client Martin Banoon in Montreal Monday. The two are seeking to launch a classactio­n lawsuit against Airbnb over service fees tagged on to nightly rental rates.
JOHN MAHONEY Lawyer Joey Zukran, right, with client Martin Banoon in Montreal Monday. The two are seeking to launch a classactio­n lawsuit against Airbnb over service fees tagged on to nightly rental rates.

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