The European Commission has warned Airbnb that its terms and conditions do not comply to EU consumer rules.
The accommodation service has been told it has until the end of the summer to ensure that it ends practices including that of belatedly applying additional fees to online prices.
Věra Jourová, the EU’s commissioner for justice, consumers and gender equality, said: “More and more consumers book their holiday accommodation online and this sector has brought many new opportunities to holidaymakers. But popularity cannot be an excuse for not complying with EU consumer rules.”
“Consumers must easily understand what for and how much they are expected to pay for the services and have fair rules, eg on cancellation of the accommodation by the owner. I expect Airbnb to follow up swiftly with the right solutions,” she added.
Airbnb is also failing to make clear whether if an offer has been made by a private individual or a professional.
“We take this issue seriously and are committed to being as transparent as possible for our community,” said a spokesperson from Airbnb.
“Guests are made aware of all fees, including service charges and taxes, prior to confirming their decision to book a listing and we will work together with the authorities to clarify the points raised,” the spokesperson added.
If the firm fails to comply with the warnings by September, it will face fines from EU member states.
In June Japan introduced a new law around home-sharing, forcing Airbnb to cancel thousands of booking.
“We know this stinks – and that’s an understatement,” Airbnb said. “Japan is an incredible country to visit and we want to help our guests deal with this extraordinary disruption.”