'Double ticketing' lawsuit against Airbnb certified as a national class action

A B.C. man has succeeded in having his claim against Airbnbcertified as a national class action lawsuit.

Arthur Lin of Vancouveralleges the accommodation booking company is guilty of "double ticketing," a rarely cited criminal offence under the federal CompetitionAct.

Simply put, double ticketingis when a vendor displaystwo different prices for a single productand then charges the customer the higher one.

Airbnb is appealing the certification.

According to his statement of claim, Lin booked a seven-daystay in Japan in May of 2016 on Airbnb. The accommodation he selectedwas shown as costing $109 anight.

But when he booked the service, he was redirected to a listing page displaying a second price of$855for the seven nights, the equivalent of $122.14 anight.

The higher, second price included an extra $91 Airbnb tacked on for service fees.

2 prices for 2 different products?

In arguments, Airbnb claimedthe offence of double ticketing does not apply in its case becausethetwo prices are for two different products: the actual accommodation offered by hosts to guests reflected in the first priceandthe listing service reflected in the second, higherprice.

But in his analysis, Justice Denis Gasconsaid the company "mischaracterizes" its own product.

"I am satisfied, that when read in context, Mr. Lin's statement of claim identifies one 'product'supplied by Airbnb, namely the accommodation booking services offered and supplied by Airbnb through its platform," he wrote.

"Put differently, I do not find it plain and obvious that, as argued, the pleadings relate to two prices for two different products."

Lin's co-counsel Simon Lin (no relation) said Airbnb's claim of selling two products doesn't hold up under scrutiny.

"It's just like if you go to McDonald's and order a Big Mac for $2.99. And then when you go to pay they add a wrapper fee of 50 cents [as if] the wrapper is a different product," said Simon Lin.

'Uncharted territory'

In the decision, Gascon notes that Lin's claim "certainly appears to be stretching the potential interpretation and application of Section 54 of the Competition Act ... extending it into unchartered territory."

However, he does say the concept of double ticketingcan beextended to the technologies and commercial practices of today's digital marketplace, even though it was first introduced into law in 1975 to address stores listing two different prices for a single item.

An estimated 2.2 million Canadians reserved on Airbnb between Oct.31, 2015, and Aug.2018, according to the claim.

It namesAirbnbInc., Airbnb Canada Inc., Airbnb Ireland Unlimited Companyand Airbnb Payments UK Limited as defendants.