Airbnb settles $6 million class-action lawsuit, some Canadians eligible for up to $45 credit (2024)

If you used Airbnb for the first time after Oct. 2015, you may be eligible for up to $45 in credit. That’s thanks to a $6 million settlement in a class-action lawsuit filed over the company’s service fees, which previously made checkout prices higher than what was first advertised.

Initially filed in 2017, the class action was led by Vancouver resident Arthur Lin, who accused the accommodation booking giant of tacking on service fees and charging him a total of $122 per night for a booking that was first listed at $108 per night.

A judge agreed Airbnb was guilty of “double ticketing,” which is when a buyer sees two or more prices and is charged the higher one at checkout. Double ticketing is a criminal offence under Canada’s Competition Act and can lead to a maximum fine of $10,000 and a year’s imprisonment.

Airbnb appealed the decision, but finally reached an agreement with Lin in federal court on Nov. 19, 2021 which allows the San Francisco-based company to avoid admitting liability. After costs like legal fees are deducted, the remainder of the $6 million will be used to provide credits of up to $45 to some affected Canadian customers.

Although it wasn’t part of the settlement, Airbnb’s online accommodation marketplace now shows prices that include all service and cleaning fees.

Anyone who may be eligible for a credit will be contacted via email by the company Deloitte LLP to submit a claim, so be sure to check your spam folder. The messages appear to have begun circulating this week.

“However, receipt of this notice does not mean that you are part of the settlement or eligible to submit a claim for a Redeemable Credit,” an email from Feb. 8 cautions.

To be eligible, you must be a resident of Canada who first used Airbnb between Oct. 31 2015 and June 25 2019. Business travellers are excluded, and so are residents of Quebec, where a separate $3 million class-action settlement has been reached. Claims must be submitted to Deloitte by March 28, 2022. Credits will be a maximum of $45, but could be lower depending on how many claims are approved. They will be valid for 24 months.

For more information on claim eligibility and the settlement, visit www.airbnbsettlement.ca.

Airbnb settles $6 million class-action lawsuit, some Canadians eligible for up to $45 credit (2024)

FAQs

Airbnb settles $6 million class-action lawsuit, some Canadians eligible for up to $45 credit? ›

If you used Airbnb for the first time after Oct. 2015, you may be eligible for up to $45 in credit. That's thanks to a $6 million settlement in a class-action lawsuit filed over the company's service fees, which previously made checkout prices higher than what was first advertised.

Who is eligible for Airbnb class action in Canada? ›

You received this email because, according to Airbnb's records, you are a resident of Canada, other than Québec, and between October 31, 2015 and June 25, 2019 you booked an accommodation via Airbnb for purposes other than business travel. Therefore, you could be eligible to receive a credit.

What is the reward for the Airbnb settlement? ›

Under the terms of the settlement, Class Members can receive credits of up to $45. Consumers may receive fewer credits depending on the number of claims filed with the settlement. According to the settlement website, credits should be distributed by May 27, 2022.

Is the Airbnb lawsuit real? ›

If you're experiencing issues with Airbnb, you're not alone.

There are several current claims and lawsuits against AirbnB. Most of these AirbnB lawsuits are class actions, which means you may be able to get in on the settlement. Or learn about how to make your own claim.

Is Labaton Keller legit? ›

With more than 60 years of experience, Labaton Keller Sucharow LLP stands as a tenacious advocate for investors, having secured billions of dollars in landmark recoveries. Renowned as a global leader, the Firm specializes in representing clients in securities and corporate governance and shareholder rights litigation.

What is the new law for Airbnb in Canada? ›

New rules come into effect on May 1, 2024, that restrict short-term rentals to principal residences and either a secondary suite or what is known as an "accessory dwelling unit," such as a laneway house, in 65 B.C. communities.

Do you have to claim income from Airbnb in Canada? ›

Like other types of income, the money you make from your rental must be reported to the government as income on your personal income tax return. Before you have any second thoughts, keep in the mind the good news, that since you're reporting the income, you are also able to deduct expenses related to that income.

How do I get my payout from Airbnb? ›

You choose how you'd like to receive the money you earn hosting. Payout methods include Fast Pay, bank transfers, PayPal, Payoneer debit cards, and Western Union, among others. The options vary depending on where you're based. To get set up, select a payout method in the Payments & payouts section of your account.

How to claim compensation from Airbnb? ›

How you'll get your money. Need to request a refund before or after a trip or Experience? First, discuss the amount with your Host in the message thread, and if they agree, go to the Resolution Center to request money. If they don't agree to the amount within 72 hours, reach out to us for help mediating.

What qualifies for a refund on Airbnb? ›

If the host cancels the booking shortly before your stay or does not give you access to the lodging, you can expect an Airbnb refund. If, at the start of the booking, the property is not generally clean and sanitary, contains safety or health hazards, or has vermin or undisclosed pets.

Who is the man suing Airbnb host? ›

Shawn Mackey has taken legal action against Pamela Fohler, who holds the title of an Airbnb “superhost.” In his 22-page lawsuit, Shawn asserts that Pamela attempted to extort an additional $960 in fees (roughly Rs 80,000) from him after he left a negative review of his experience at her Airbnb accommodation.

What is the Airbnb refund lawsuit? ›

A lawsuit seeking class action status, filed Thursday in San Francisco on behalf of Airbnb hosts, alleges the company's refund policy in the United States during the first wave of the Covid-19 crisis ripped off both hosts and guests, and that the short-term rental giant secretly profited by retaining some of the monies ...

Can Airbnb watch you? ›

Can Airbnb hosts watch you on cameras? Technically, yes, but only through outdoor cameras in open areas. Hosts are not allowed to set up any kind of indoor camera.

Is Labaton Sucharow real? ›

Labaton Keller Sucharow is an American plaintiffs' law firm. Founded in 1963, the firm employs over 60 lawyers in offices in New York, Delaware, and Washington, D.C.

Is JJ Keller a good company? ›

Employees rate J. J. Keller 3.9 out of 5 stars based on 319 anonymous reviews on Glassdoor.

Is Keller Finance legit? ›

Keller Finance is not a trusted broker because it is not regulated by a financial authority with strict standards. We recommend you open an account only with brokers that are overseen by a top-tier and stringent regulator. All the 100+ brokers reviewed on the BrokerChooser website meet this criteria.

How do I claim income from Airbnb? ›

Generally if you rent out your entire home on a short-term basis, you will file under Schedule C; while those who rent out just a part of their home or who also have long-term tenants will file under Schedule E.

Who is the disability host on Airbnb? ›

Airbnb Experience Hosts can choose to allow access providers to join the guests they're assisting in person at no additional cost. When a guest who requires an access provider books an Experience that has this option enabled, their access provider won't be charged for (or counted as) a separate seat.

What is Canada's version of Airbnb? ›

VRBO Canada

VRBO (Vacation Rental by Owner & formerly HomeAway) is one of the most popular and well-known alternatives to Airbnb. With a wide array of vacation homes, condos, cabins, and cottages, VRBO is an excellent choice for those seeking a home-away-from-home experience.

Is an Airbnb considered a business in Canada? ›

Income tax on accommodation sharing. All income you receive from an accommodation sharing arrangement is subject to income tax. However, the CRA may consider this income to be either rental income from a property or self-employment business income. The type of income affects how you report it on your tax return.

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