Airbnb users unable to sue over racial profiling

SAN FRANCISCO— Brian Chesky, chief executive officer of Airbnb, made a vow this month to root out bigotry from his business.

His online room-sharing company has recently been grappling with claims of discrimination, with several Airbnb users sharing stories on social media about how they were supposedly denied a booking because of their race.

The issue came into the open in December when a working paper by Harvard University researchers found it was harder for guests with African-American-sounding names to rent rooms through the site.

“This is a huge issue for us,” Chesky said at a company event in San Francisco in early June. “We will be revisiting the design of our site from end-to-end to see how we can create a more inclusive platform.”

But even as Chesky promised to stamp out racism from Airbnb, the company’s class-action litigation policy makes it tough — if not impossible — for customers to push the startup to make any substantive changes on the issue. Airbnb requires that people agree to waive their right to sue, or to join in any class-action lawsuit or class-action arbitration, to use the service.

That clause, known as a class-action waiver, crops up whenever someone logs into Airbnb’s site. In March, the company updated its terms of service for new users, partly to highlight that clause.

Last month, Airbnb users were unable to log in and use their accounts until they agreed to the updated terms, including the class-action waiver language.