Consumer NZ asks Commerce Commission to review Airbnb and Bachcare cancellation fees

Accommodation booking sites Airbnb and Bachcare are being targeted for cancellation terms that leave some customers hundreds of dollars out of pocket.

Consumer NZ is filing a complaint today with the Commerce Commission, requesting that it take legal action against the two accommodation booking sites for their use of unfair cancellation terms.

Consumer NZ CEO Jon Duffy said the reservation sites’ heavy-handed policies had left some customers with hundreds of dollars out of pocket.

Complaints to Consumer NZ about the sites have increased since the last Covid-19 shutdown in August.

“Consumers who had booked accommodation but were unable to travel due to closure told us that they had been denied a full refund. Although they could not use the accommodation, through no fault of their own, they were informed that they would not get it back their money. That’s clearly unfair, “Duffy said.

Consumer NZ reviewed the cancellation policies of booking sites and found that they run the risk of violating the Fair Trade Act, which prohibits unfair terms in contracts with consumers.

Clients of the sites may face high fees if they need to cancel, in some cases they will lose the full amount they paid.

Duffy said Airbnb allows hosts listed on its site to use cancellation policies that can cause customers to lose 50 to 100 percent of the room fee, despite giving reasonable notice that they must cancel.

In contrast, if an Airbnb host wanted to cancel a reservation, the most Airbnb could charge them was $ 145.

Bachcare’s standard terms were even harsher, he said.

Their cancellation policy states that the client will lose all accommodation fees and the service fee, even if they cancel 60 days before the start of their stay.

“In our opinion, these charges are excessive. If a hosting provider imposes a cancellation fee, they can’t just charge what they want. Businesses should have a legitimate basis for their fees and take into account the fact that ownership could be rented to another customer. It’s hard to argue that the fees charged to Airbnb and Bachcare customers are justified in any way. “

Consumer NZ asked Airbnb and Bachcare if they had revised their terms to comply with the Fair Trade Act, but got no satisfactory answers, Duffy said.

In its complaint, Consumer NZ has asked the Commerce Commission to request a judicial declaration that the cancellation terms are unfair. Any term that the court finds unfair cannot be applied by the merchant.

Duffy advises consumers who believe they have been charged an unfair cancellation fee to file a complaint with the Commerce Commission.