Airbnb on collision course with EU

Airbnb,the popular property rental website, has been warned by the European Commission to comply with its consumer standards or face financial penalties.

According to the Commission, the executive arm of the European Union, Airbnb's pricing is not sufficiently transparent, and its terms do not fully guarantee the rights of European consumers.

"Airbnb has now until the end of August to propose detailed solutions on how to bring its conduct in compliance with EU consumer legislation," the Commission said.

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The EU said the platform needs to align itself with EU consumer rights laws by ensuring prices shown on the platform are inclusive of all fees, and should empower consumers to take legal action against their hosts, should they have reason to do so.

Airbnb has been told to show the full price of rental properties upfront and to clearly identify whether offers are being made by private hosts or by professionals, since this affects the level of consumer protection available.

Belonging, and being regulated, anywhere

"Consumers must easily understand what for and how much they are expected to pay for the services and have fair rules — for example on cancellation of the accommodation by the owner," said Vera Jourova, EU Commissioner for Justice and Consumers.

Airbnb have made a statement on the issue, saying they "take this issue seriously and are committed to being as transparent as possible for our community."

Read more: Amsterdam to curb Airbnb rentals

"Guests are made aware of all fees, including service charges and taxes, before confirming their decision to book a listing, and we will work together with the authorities to clarify the points raised," they added in the statement.

Should Airbnb fail to abide by the EU's demands by the deadline, national consumer authorities in the EU's 28 member states will be empowered to issue individual fines as they see fit.

mds/aos (dpa, Reuters)