Host initiates class-action lawsuit over COVID-19 cancellations

[Lisa723]

https://www.cnbc.com/2020/11/06/airbnb-hit-with-proposed-class-action-lawsuit-from-host-missing-paym...

[Sharon1014]

How very interesting @Lisa723 

 Well so much for trying to intimidate hosts out of filing Class Action suits and banning hosts from entering into Arbitration with the latest ToS update.  Airbnb are already in breach of an arbitration agreement, defaulting on paying the plaintiff's legal fees.  Now why doesn't that surprise me?

Airbnb latest ToS trying to ban such suits is apparently "unlawful and un-enforceable" in California.  Know there are many other hosts large and small who are party this proceeding as well.

Do tend to think the only way Airbnb will ever pull it's head in and stop exceeding its remit in lording it over hosts generally and in particular using host money for its own purposes (in breach of its fiduciary obligations to hosts) is in a court of law.  So very good luck to all plaintiffs, it's long past time that hosts were treated with proper respect and given a real seat at the table (minus the ToS Clause 16 "Airbnb in its sole discretion") trapdoor underneath the seat.

And here's a little more reporting from other outlets

https://washingtonsources.org/world/airbnb-hit-with-proposed-class-action-lawsuit-from-host-missing-...

https://superdeluxo.com/2020/11/06/airbnb-hit-with-proposed-class-action-lawsuit-from-host-missing-p... 

https://skift.com/2020/11/05/airbnb-accused-in-lawsuit-of-ripping-off-hosts-and-guests-with-covid-re...

@Robin4 @Sarah977 @Ute42  @Ian-And-Anne-Marie0  @Jessica-and-Henry0 @Ingrid38  @Rebecca181 

[Rebecca181]

@Kia272 - In addition to what @Sharon1014 wrote, if I am remembering correctly, hosts were also not given the opportunity to be able to work directly with their guests to offer / invite them to re-book at a later date. Also, some guests reported that they actually would have been reimbursed by their travel insurance for the cancellation, but because hosts could not speak to them prior to the refund, this option could not be explored - and was definitely not explored by Airbnb. No other short-term rental booking platform that I am aware of handled Covid-related cancellations in this manner.

 I'm with @Ian-And-Anne-Marie0 and @Mark116 on this - Airbnb exhibits a pattern of unilaterally violating hosts' contractual rights, and this should concern us all. Link to the law firm handling the class action suit here:

 https://www.classlawgroup.com/airbnb-host-class-action-lawsuit/

"Gibbs Law Group and Traverse Legal have filed a class action lawsuit on behalf of hosts who allege that when the COVID-19 pandemic hit, Airbnb seized funds that belonged to hosts while claiming that the money would be refunded to guests.

Although Airbnb promised guests full refunds if they canceled due to COVID concerns between March 14 and April 14, 2020, Airbnb has now allegedly failed to provide those refunds to many guests—and to hosts, Airbnb has paid out a paltry 25% or less of what they were supposed to receive under their agreements with guests. This shortchanging of hosts flies in the face of Airbnb’s own insistence, in its Terms of Service, that all trip bookings are agreements solely between hosts and guests, and that Airbnb is merely an intermediary.

If you’re a host on Airbnb and haven’t been paid fairly for canceled trips, you may have a claim. Speak with one of our class action attorneys today."

[Ian-And-Anne-Marie0]

@Sharon1014  @Lisa723 

Exactly Sharon.

What goes around comes around. The first of many I see this morning...

[Kia272]

It's a freakin' pandemic, people. I'm just not getting the entitlement. The health and safety of human beings outweighs money in my world. Your guests are not canceling because they want to. They are canceling because it's not safe or responsible to travel, and in many cases they can't legally travel. The US has done a HORRIBLE job of handing this pandemic. 

So hosts are "entitled" to their money when the cancellations are due to circumstances outside of anyone's control?

Jeez....maybe reexamine your values. 

This is MY take on the situation and not directed at anyone in particular, hence no tagging. I simply remember all of the threads on this subject when the pandemic first started, and how my jaw dropped at what hosts were saying. 

AirBnB is a business, and there are no guarantees in life. You take a CHANCE when you list a property on AirBnB. You have no guarantee of business/bookings. 

[Sharon1014]

@Kia272   Don't think anyone disputes the pandemic related issues.  It's what Airbnb chose to do about it, unilaterally and arbitrarily over-riding host cancellation policies with zero consultation with hosts.  That's not exactly a partnership now is it?

During the early stages of the pandemic, other listing platforms upheld the existing host cancellation policies, and gave hosts the option to refund in full without penalty if they so chose.  That is a huge difference. 

Airbnb on the other hand, just mowed hosts down en-masse, ignored cancellation policies, zero consultation and then belatedly tried to save their rear ends with a miniscule amount of compensation to only a very select few hosts, strictly on Airbnb's terms alone.  Another decision from on high made with zero consultation.

And that my friend, is what the difference is.  And what this law suit is all about.  It's not about "entitlement", it's about tortuous interference in business, which is exactly what Airbnb did.  And it's the way they seem to operate in all spheres.  Airbnb is the Almighty Overlord, we are the serfs, no rights, no comeback, no input, just slaves without even the most basic constitutional rights to a fair hearing and natural justice or equitable partnership in the rules that normally apply to any contractual business arrangement.  Anything that can be done to change this duplicitous corporate dynamic will be incredibly welcome.  My 2c.

[Kia272]

@Sharon1014  I appreciate your 2c. Again, I was just remembering my shock and horror at hosts and their behavior and demands when the pandemic (and mass cancelations) began. 

I think in this particular case, it was a good decision to override host cancellation policies. This situation was unprecedented for all involved. I think AirBnB HAD to make a unilateral decision and apply it across the board to all hosts, regardless of varying factors. 

I can't really address ongoing business practices with AirBnB, and how they treat their hosts. I don't agree with everything they do, but I'm still on the platform because overall, I am benefiting from my relationship with AirBnB. 

I do feel strongly that people have a choice about where they list their properties, and if they feel that AirBnB is not treating them fairly, then they can choose to go elsewhere. 

Of course if there's intentional malfeasance and illegalities, then AirBnB should be held accountable. 

Cheers,

Kia

[Ian-And-Anne-Marie0]

@Kia272 

Of course if there's intentional malfeasance and illegalities, then AirBnB should be held accountable. 

I think that's more the point than anything else.

I don't believe any host would argue to remove cash from guests if there was no interference with the policy's. But because allegedly, there was, this is not now simply a cancellation due to a pandemic problem, it is now an interference of contract problem. The consequences of that are much further reaching. I do believe though that there was a calculated risk involved. I believe the calculation was based on the lethargy and inaction of hosts upholding their rights (or even noticing the change). Many are keen and are upholding their rights, but many don't think it worthwhile.

This Class action makes a claim a lot easier and much more attractive. Those hosts who have not yet put their own arbitration claim in will find it easy to join the action. That $655 - a low amount - will signal that even small claims would be justifiable and possibly attract a greater amount of hosts into the action.

[Mark116]

What you're saying, in effect, is that a legal contract has no meaning, the deal that hosts made with Airbnb in terms of their cancellation policies wasn't a contract at all, and neither was the deal that guests made with the hosts/Airbnb when  they made the reservation.  Airbnb unilaterally changed the terms. 

Putting aside emotion and morality, this is a terrible precedent, allowing a multi-national corporation to void parts of the deals it makes with its suppliers without even bothering with an advance notification.

[Helen3]

I couldn’t agree more @Kia272 . I was shocked at the number of hosts wanting guests to still pay for accommodation they couldn’t provide or expecting Airbnb to subsidise their business including those managing substantial property portfolio’s.

These hosts were quite happy to build up property portfolio’s and huge profits in the good times but seemingly didn’t set aside any of these profits for when their business weren’t doing as well (as any business should) such as during Covid. 

Of course not all hosts were making huge profits but some of those complaining were the very ones who had previously talked about how much they made through STRs. 

It was of course within Airbnb’s gift to update their EC policy to take into account unprecedented worldwide pandemics such as Covid such as they would if there were forest fires, floods and earthquakes. 

I like many others in the hospitality industry  have been hugely affected by Covid because I was not being able to host at all from March to July  due to UK government restrictions.  But I never expected guest or a listing company to subsidise my business. 

[Deb75]

How do you know 'which' hosts are doing the complaining, the rich ones or others, as the plaintiff is, depending on hosting for living expenses?

[Helen3]

Because you can see their listing portfolio and previous posts here @Deb75 

[Inna22]

@Helen3 , my friend. Sometimes I so agree with you and sometimes I so don't! I chose a strict policy and I lost some business because of it all these years. I am sure I some people did not book my places because of it and I sometimes could not get away with charging as much as others. In return, I got peace of mind. I knew what got booked would stay booked. My guests had a choice. They chose my non refundable listing fully knowing that things happen to all of us- perhaps not a pandemic but not a single person is immune to an emergency. By not getting a full refund they would have not subsidised my business, they would have met their obligations under a contract they chose to sign. They also chose not to purchase insurance. I have not had a single unhappy guest on other platforms- I have rebooked or refunded most of the money to everyone. It was my decision though. Vrbo actually has a special banner for hosts who did that- airbnb can learn from Vrbo a thing or two. Airbnb had absolutely no right to make these refund decisions, not for the first 30 days as per TOS. 

[Helen3]

Hi @Inna22 

I really value your input here. Inevitably we won’t always agree 😊

I too had a strict cancellation policy so was one of the hosts personally affected by Airbnb’s decision to extend its extenuating circumstances policy for Covid to all guest bookings. 

let me explain where I am coming from. I live in a country which from March to July our government banned all STR accommodation in a shared home situation. 

this meant I wasn’t able to provide accommodation. In this situation I was never going to ask a guest to honour my strict cancellation policy and pay for a service I couldn’t provide. 

many hosts and property management companies were in a similar position - they either lived in an area that was  in lock down or their guests were in lockdown and not able to travel. Yet some of these were the ones still insisting on their strict policies being honoured. This is what I find morally uncomfortable. 

Travel insurance doesn’t tend to cover pandemics.

if I had been able to provide a service and If they had been able to travel I would feel differently but this wasn’t the situation we found ourselves in.

[Jo56]

@Helen3 and @Kia272 

I think there is a deeper issue you are missing.

As a host I was disgusted that Airbnb was NOT fully refunding guests after withholding the money for hosts, but instead manipulating guests into accepting travel vouchers by telling guests that the hosts' cancellation policy would only allow a 50% refund, OR they could get their full reservation amount back as travel vouchers. Vouchers that many guests may not have the opportunity to use. More importantly, these were guest's funds, which many of them really could have used themselves during the widespread financial losses of the pandemic.

Airbnb kept the money. That is a disgusting abuse of power and funds which should have been held in trust.

I tried to fight for a number of guests to receive full cash refunds after they were misled by the wording on Airbnb's cancellation pages into accepting travel vouchers, to no avail. Airbnb refused to help these guests once they had clicked that box, thinking at the time it was the only way to get back the full 'value' of their reservation.