The B.C. Supreme Court has certified a class-action lawsuit against Airbnb that alleges the short-term rental company has breached provincial consumer protection laws by offering unlicensed real estate brokerage and travel agent services.
Justice Elizabeth McDonald says in a decision posted online Thursday that lead plaintiff Margot Ware鈥檚 lawsuit against Airbnb meets the test as a class action on behalf of consumers who paid fees or commissions when booking accommodations.
Ware鈥檚 lawsuit alleges Airbnb is 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.
McDonald鈥檚 ruling says Airbnb and several related companies claimed Ware鈥檚 lawsuit was an 鈥渁buse of process鈥� and part of a 鈥渟eries of repeated, piecemeal attacks鈥� on the legality of the company鈥檚 fees charged to users.
The legal action applies to all those who made a reservation with Airbnb in Canada and outside Canada 鈥� excluding those in the United States 鈥� for accommodations in British Columbia.
Airbnb did not immediately respond to a request for comment on the ruling, and McDonald鈥檚 decision says the company has not filed a response to Ware鈥檚 lawsuit, which was filed in May 2022.
The ruling says the company objected to the lawsuit moving ahead because of overlapping issues with other lawsuits it faced, but McDonald found the 鈥渙nly overlap鈥� was that the company was 鈥測et again鈥� being sued for the alleged improper collection of fees.
McDonald鈥檚 ruling says Airbnb also wanted the lawsuit heard in California rather than British Columbia, but the judge found the company offered 鈥渘o meaningful evidence鈥� about why the case shouldn鈥檛 be litigated in the province.
McDonald found the plaintiff 鈥渉as shown a good arguable case鈥� that, if proven, could open Airbnb up to damages under the province鈥檚 Business Practices and Consumer Protection Act.
Ware was described as a B.C resident who used Airbnb's services for leisure travel for years, including a 13-day stay in Penticton in August of 2021 that was specifically noted in the ruling, for which she paid over $7,400.
