BC court rules lawsuit against Airbnb can proceed
The British Columbia Supreme Court has certified a class-action lawsuit against Airbnb, accusing the short-term rental platform of violating provincial consumer protection laws by offering unlicensed real estate brokerage and travel agent services.
The lawsuit, led by plaintiff Margo Ware, represents consumers who paid fees or commissions when booking accommodations through Airbnb.
Ware’s lawsuit, filed in May 2022, alleges that Airbnb is not licensed to provide real estate or travel agent services anywhere in Canada and is also not registered as a money services business with the federal government. The lawsuit argues that these alleged breaches have resulted in improper fee collection from users.
According to the ruling posted online Thursday by Justice Elizabeth McDonald, Ware has "shown a good arguable case" that, if proven, could lead to damages under British Columbia’s Business Practices and Consumer Protection Act.
The class action applies to anyone who made a reservation with Airbnb in Canada or outside the country — except for bookings made in the United States — for accommodations in British Columbia. The lawsuit was originally filed in May 2022.
Airbnb argued that Ware’s lawsuit constitutes an "abuse of process" and is part of a "series of repeated, piecemeal attacks" on the legality of its fee collection practices. The company also contended that the case should be heard in California, where it is headquartered.
However, Justice McDonald dismissed these arguments, stating that Airbnb provided "no meaningful evidence" to support moving the case out of British Columbia.
The company further objected to the lawsuit proceeding, citing overlapping issues with other legal actions it is facing. Justice McDonald, however, determined that the only overlap was Airbnb being "yet again" sued for allegedly improper fee collection.
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If successful, the lawsuit could result in damages for consumers under provincial consumer protection laws. Justice McDonald emphasized that certifying the lawsuit does not imply a decision on its merits but allows the legal action to move forward.
Airbnb has not yet filed a response to the lawsuit and did not immediately comment on the ruling.
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