Airbnb Lawsuits and Arbitration

On paper, Airbnb seems like a dream. It’s an easy way to find lodging anywhere in the world or make some extra cash renting out properties. But beneath the shiny surface lie some hidden problems, including arbitration and lawsuits.

Airbnb users have filed lawsuits based on the following grounds:

• Sexual assault
• Rape
• Hidden video cameras in bedrooms and private areas
• Race discrimination

Keep reading to learn more details about the incidents and the ensuing lawsuits or arbitration.

Recent Airbnb Lawsuits and Arbitration

Some recent lawsuits filed against Airbnb allege:

Hidden Cameras

There have been several lawsuits filed against Airbnb in regard to hidden cameras recording guests, including a recording incident in South Carolina in 2019. A woman filed a lawsuit against two Airbnb hosts after law enforcement informed her that she was secretly recorded during her Airbnb stay. The lawsuit alleged a recording device was found on top of a dresser. The recording device captured the entire bed and most of the bedroom.

Although Airbnb has specific requirements that hosts must disclose all security cameras and recording devices in their listings and a strict ban on recording devices inside private spaces like bedrooms and bathrooms, hidden camera incidents continue to happen.

In San Diego, a couple filed a lawsuit against the owner of the Airbnb they stayed at after discovering hidden cameras throughout the unit. According to reports, two of the cameras were in the bathroom, and another one was in the ceiling of the bedroom.

COVID Refund Policy Alleged as ‘Rip Off’

In November 2020, a proposed class-action lawsuit was filed on behalf of Airbnb hosts. The filing alleged the company’s refund policy during the first wave of COVID-19 ripped off both hosts and guests, while the company secretly profited by retaining some of the money. Initially, the short-term rental giant promised full refunds to guests who had booked stays on or before March 14, 2020. However, the lawsuit alleged the company required rigorous documentation as part of the refund process and either refused claims, issued only partial refunds, or issued other forms of compensation toward travel credits instead of cash refunds. The lawsuit accused Airbnb of violating its contractual obligations to its hosts, breached various cancellation policies, and secretly profited by keeping the funds.

Racial Discrimination

In 2015, Airbnb launched a Smart Pricing algorithm as a means for hosts to increase their bookings. With the simple switch of a button to activate the Smart Pricing tool, hosts could set a minimum nightly rate and leave the rest to machine learning and automation, including analyzing a listing’s booking story, reviews, seasonality, market popularity, and viewership metrics. Airbnb also created the tool to address earning disparities between white and African-American hosts. But Smart Pricing ended up doing the exact opposite when not many Black hosts adopted it. Figures show that between July 2015 and August 2017, Smart Pricing widened the earning gap between African-American and white hosts across the United States by 20%.

A year after the rollout of Smart Pricing, a 25-year-old Black man filed a complaint against Airbnb for discriminatory housing practices. He alleged that an Airbnb host refused to accommodate him when he requested a booking with his personal profile — which included a photo. But when the man applied using two fake profiles of white men, the host accepted the bookings.

Rape

On New Year’s Eve in 2015, an Australian woman and her friends arrived at their New York City Airbnb. The keys were left at a nearby bodega for the renters to pick up — no identification required. Shortly after ringing in the new year, the woman returned to the apartment alone after leaving her friends at a bar. She walked into the bathroom, oblivious to the fact that a man was lurking in the shadows. By the time she realized there was an intruder in her Airbnb, he had the blade of a kitchen knife pointed at her. According to official reports, the stranger then grabbed her, shoved her onto a bed, and raped her. The woman eventually escaped, and the perpetrator was arrested. Airbnb ended up paying the victim $7 million — one of the biggest settlements in company history. In exchange, she signed an agreement to remain silent about the settlement.

An investigation found that Airbnb deals with thousands of sexual assault allegations each year. The company also spends around $50 million annually attempting to make things right for guests and hosts who’ve had bad experiences.

If you’ve been injured, taken advantage of, or otherwise victimized on the premises of an Airbnb property or during the booking process, contact Bennett Injury Law for your personal injury needs. Bennett Injury Law is also a leading domestic and international arbitration law firm. We provide the highest-quality legal representation for complex domestic and international commercial and personal injury arbitrations.

Charles Bennett

Charles Bennett is a Plaintiff’s trial attorney and trial consultant based in Dallas, Texas. His law firm, Bennett Injury Law, is a personal injury plaintiff’s law firm that specializes in 18-Wheeler and Commercial crashes, Wrongful Death, Traumatic Brain Damage, Motor Vehicle Crashes, and Workplace Injuries. Cases Charles has consulted on in 2019 have won over $35M in verdicts.