EU warns Airbnb to obey rules

BRUSSELS: Airbnb Inc was warned yesterday by the European Union to expect a regulatory clampdown unless its terms and conditions and the way it presents holidayhome prices comply with EU standards by the end of August.

“The online platform must present pricing information in a more transparent way and make the distinction between private and professional hosts clearer to consumers,’’ the European Commission said in a statement.

“The company’s terms and conditions need to be made fairer and more understandable to consumers,’’ the EU executive arm said, urging the company to present changes “swiftly” ahead of a review by regulators.

“Popularity cannot be an excuse for not complying with EU consumer rules,” EU Commissioner for Consumers Vera Jourova said in a statement.

“Consumers must easily understand what for and how much they are expected to pay for the services and have fair rules e.g. on cancellation of the accommodation by the owner.”

Airbnb burst onto the scene a decade ago by persuading millions of people to open up their homes to strangers — starting a trend for holidaymakers looking for an alternatives to hotels.

It has faced criticism, including from landlords, of violating zoning laws and operating as an illegal hotel.

Critics have also said abundant shortterm rentals drive up housing costs and disrupt neighbourhoods.

“Airbnb has to either change or remove illegal terms in its terms of service,’’ the commission said. “These include that the San Francisco-based company can no longer decide unilaterally and without justification which terms remain in effect after a contract is ended, or deprive consumers from their basic legal rights to sue a host if they suffer personal harm or other damages.’’