B.C. lawsuit alleges Airbnb is offering unlicensed real estate brokerage and travel agent services
The┬аB.C. Supreme Court has certified a class-action lawsuit against┬аAirbnb┬аthat alleges the short-term rental company has breached provincial consumer protection laws by offering unlicensed real estate brokerage┬аand┬аtravel agent services.
Justice Elizabeth McDonald says in a decision posted online Thursday that lead plaintiff Margo Ware’s lawsuit against┬аAirbnb┬аmeets the test as a class action on behalf of consumers who paid fees or commissions when booking accommodations.
Ware’s lawsuit, first filed in April 2022, alleges┬аAirbnb┬аis not licensed anywhere in Canada to provide real estate or travel agent services, nor is it registered as a money services business with the federal government.
Airbnb did not immediately respond to a request for comment on the ruling, and McDonald’s decision says the company has not submitted a response to Ware’s lawsuit, which was filed in May 2022.
McDonald’s ruling says┬аAirbnb┬аand┬аseveral related companies claimed Ware’s lawsuit was an “abuse of process”┬аand┬аpart of a “series of repeated, piecemeal attacks” on the legality of the company’s fees charged to users.
The legal action applies to all those who made a reservation with┬аAirbnb┬аin Canada┬аand┬аoutside Canada тАФ excluding those in the United States тАФ for accommodations in┬аBritish┬аColumbia.
The ruling says the company objected to the lawsuit moving ahead because of overlapping issues with other lawsuits it faced, but McDonald found the “only overlap” was that the company was “yet again” being sued for the alleged improper collection of fees.
McDonald’s ruling says Airbnb also wanted the lawsuit heard in California rather than British Columbia, but the judge found the company offered “no meaningful evidence” about why the case shouldn’t be litigated in the province.
McDonald found the plaintiff “has shown a good arguable case” that, if proven, could open┬аAirbnb┬аup to damages under the province’s Business Practices┬аand┬аConsumer Protection Act.
