Accommodation service told it needs to be clearer on total cost including fees and charges

Airbnb has been found in breach of EU law and given until the end of the summer to ditch a range of practices, including that of belatedly applying additional fees to the prices it promotes online.

The accommodation service has been accused by the European commission and national regulators of failing its customers and making the mistake of many global digital firms of “forgetting its responsibilities”.

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Věra Jourová, the commissioner for justice and consumers, told reporters in Brussels that the company had until the end of August to show it was reforming its ways or it could expect national regulators across Europe to launch coordinated action.

The commissioner said the prices displayed to those using the Airbnb website fail to reflect the fees and charges later passed on to the consumer, including cleaning costs.

The site did not clearly identify if the offer of accommodation was being made by amateur hosts or professionals. The issue is important because the level of consumer rights differ according to the status of the owner, as do the health and safety requirements.

The commissioner said Airbnb’s terms and conditions were unclear. She also said the company should put an end to its policy of seeking to tackle legal complaints made by its clients in courts outside the country where the complainant resides.

Jourová, who lamented a lack of EU sanctions directly available to Brussels, 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, [for example] on cancellation of the accommodation by the owner. I expect Airbnb to follow up swiftly with the right solutions.”

Jourová, who is from the Czech Republic, added that the commission had received some 6,000 complaints about such accommodation services last year but the EU’s executive regarded that as “the tip of the iceberg”.

She added that the warning would not come “out of the blue” to Airbnb, which is is said to be aiming to have 1 billion annual guests worldwide by 2028.

An Airbnb spokesman said: “We take this issue seriously and are committed to being as transparent as possible for our community.

“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.”

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There have long been concerns about Airbnb’s policies, along with its wider impact on the hospitality industry and residential rents, with local authorities increasingly looking to curb its presence.

After a 40% increase in residential rents followed a 50% rise in unregulated tourist lets, Palma de Mallorca voted in April to ban almost all listings by Airbnb and similar sites.

The Silicon Valley firm, which earned $93m in profit on $2.6bn in revenue in 2017, faces a range of fines from EU member states if it fails to respond to the commission’s warning. The commission said it was willing to meet the company in September to find an acceptable solution.