In a significant development for consumers in British Columbia, a class-action lawsuit against Airbnb has gained approval from the B.C. Supreme Court. The case, led by plaintiff Margo Ware, accuses the popular short-term rental platform of violating provincial consumer protection laws by allegedly operating as both an unlicensed real estate broker and a travel agency.
Justice Elizabeth McDonald, in her ruling released online, affirmed that Ware’s claims satisfy the criteria for class-action status. This means that anyone who has incurred fees or commissions while booking accommodations through Airbnb could potentially be part of this legal challenge.
Ware's lawsuit, which was originally filed in April 2022, asserts that Airbnb lacks the necessary licenses to conduct real estate or travel agency services in Canada. Furthermore, the company is not registered as a money services business with the federal government, raising questions about its operational legitimacy.
Interestingly, Airbnb has yet to issue a public statement regarding the court's decision, and records indicate that the company has not formally responded to the allegations made in Ware's lawsuit. In her ruling, Justice McDonald noted that Airbnb and its affiliates have dismissed the lawsuit as an "abuse of process," framing it as part of a broader pattern of legal challenges against the company’s fees.
This lawsuit is particularly noteworthy because it encompasses all individuals who have made reservations through Airbnb in Canada (excluding the United States) for accommodations in British Columbia. The only commonality among these cases is that they all address the alleged improper collection of fees by Airbnb.
If the claims hold up in court, Airbnb could be liable for damages under the province’s Business Practices and Consumer Protection Act.
As the case moves forward, it could set a precedent for how short-term rental platforms operate in Canada, particularly concerning adherence to local regulations and consumer rights.
