Consumer sanctions Airbnb with 64 million for advertising homes without a license

He Ministry of Consumer Affairs has sanctioned 64 million euros to the online tourist housing rental platform Airbnb for, among other reasons, publishing tourist accommodation advertisements without a license.

The resolution becomes final and exhausts the administrative route after the appeal filed with the Minister of Consumer Affairs has been resolved. Pablo Bustinduyas reported by the ministry this Monday.

The resolution also implies two accessory sanctions that oblige the platform to rectify the identified non-compliance, eliminating the illicit content published, and to make public the fine imposed.

Violations of consumer regulations – identified in a total of 65,122 ads in Airbnb and that have given rise to this resolution—have consisted of unfair commercial practices with consumers and users.

Specifically, Consumption has referred to the publication of advertisements for tourist accommodation without a license, contravening the obligations imposed by the majority of regional regulations, which require indicate the registration number in advertising.

It has also mentioned ads that use false or incorrect license or registration numbers, as well as those without truthful information about the legal nature of the hosts, which constitutes false advertising.

For this reason, a penalty for serious infringement has been imposed in the amount of 64,055,311 euros, an amount that, according to Consumption, is equivalent to “six times the illicit profit” obtained by Airbnb as a consequence of these practices, maintained from the warning issued by the Ministry until the withdrawal of the ads.

In this context, the Superior Court of Justice of Madrid had previously supported the withdrawal order issued by the Ministry in different orders.

The Ministry has also identified an infraction due to non-compliance with the regime and obligations of contracts concluded remotely, by omitting information about the legal nature of the host of the advertised tourist accommodation. This is a minor infraction, fined 10,000 euros.

Likewise, he has pointed out the obstruction or refusal to provide information during the investigation of the filesince the platform did not respond to the Consumer requirements, another minor infraction sanctioned with 10,000 euros.

Finally, it has been noted failure to comply with imposed duties and prohibitions through orders or provisional measures of the investigating body – issued to avoid risks or harm to consumers during the processing of the file – a serious infraction punishable by 55,000 euros.

In the field of housing, the Ministry has recalled that it maintains different sanctioning files against real estate agencies for possible abusive practices towards tenants in rental management.

All these actions are part of the objective set by Pablo Bustinduy of contributing to tackle the housing crisis in Spainone of the main problems of the country.

Bustinduy has stated that “There are thousands of families living on the edge because of housing.while a few enrich themselves with business models that expel people from their homes”, and has stressed that “no company in Spain, no matter how large or powerful, can be above the law.”