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Sanctions against e-commerce violations of 'Airbnb Island', a global shared lodging platform

by walk around 2024. 3. 11.

- Consumer protection in the relevant market is expected to increase due to the recognition of the obligation of mail-order intermediaries to verify and provide identity information of mail-order intermediaries in the accommodation service market -

The Korea Fair Trade Commission decided to impose an order to prohibit future activities and impose a fine on Airbnb Island, an operator of a cyber mall website(www.airbnb.co.kr) that provides online accommodation services under the Consumer Protection Act in Electronic Commerce, etc. (hereinafter referred to as the "E-Commerce Act") and a mail order broker who provides accommodation brokerage services, as well as the act of failing to display his or her identity information as an operator of ▲ a mail order broker and the act of not providing it to consumers until the subscription is made.

The E-Commerce Act requires cyber mall operators to display their identity information on the cyber mall, thereby seeking to resolve disputes and quickly remedy damages arising from e-commerce by consumers using the cyber mall. In addition, mail-order brokers are required to identify and provide identification information of mail-order brokerage clients (e.g., pension operators, hotel operators, etc.) so that consumers can quickly resolve disputes related to e-commerce.

Airbnb Island, however, is an operator of a cyber mall (website and mobile app) that mediates accommodation service transactions between the guest and the accommodation provider (host), and (1) the name of its name and representative on the initial screen of the cyber mall, ③ the address of the place where the office is located, 전화 the phone number and e-mail address, ④ the business registration number, ⑤ the terms and conditions of use of the cyber mall, and the name of the person providing the ⑥ hosting service were not displayed (voluntarily corrected after June 2022). Airbnb Island also failed to fulfill its obligation to display information such as its identity on the initial screen (2) on the mobile app (voluntarily corrected after August 2023). Accordingly, the FTC decided to impose a ban order and fine in the future, considering that Airbnb Island's act violates the obligations of cyber mall operators under Article 10 (1) of the Electronic Commerce Act.

Airbnb Island has not fulfilled its obligation to verify and provide identity information to consumers until the subscription is made by simply providing identity information such as ① the name of the trade name and representative of the client, ② the address, phone number, e-mail address, ③ the mail business report number, and ④ the business registration number without any confirmation. Accordingly, the FTC decided to impose an order to implement Airbnb Island, considering it as a violation of the obligations of mail order brokers under Article 20 (2) of the Electronic Commerce Act. In this regard, the FTC required Airbnb to determine specific matters, such as methods and degree of verification, within 60 days from the date of service of the resolution.

This measure is expected to contribute to the prevention of consumer damage disputes by ensuring that mail-order brokers who operate brokerage platforms for domestic consumers, even if they are overseas businesses, comply with the obligations under the Electronic Commerce Act, such as faithfully checking the identity information prepared by mail-order brokerage clients and delivering it to domestic consumers. At the same time, it is expected that in the event of actual consumer damage, a timely relief system for damage can be promoted.

In the future, the FTC plans to continue to monitor platform operators' violations of the e-commerce law without discrimination against domestic and foreign businesses and take prompt and strict action against violations of the law. In addition, the FTC plans to do its best to prevent consumer damage by ensuring that related identity information is accurately provided in the process of specifying the implementation order imposed in this case.