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Date Published: 18/12/2024

Spain consumer rights watchdog to sue Airbnb for not removing unlicensed holiday lets from its platform

Thousands of apartments and villas across Spain were offered for rent on the platform, even though they don’t have tourist licenses

Spain’s General Directorate of Consumer Affairs has launched legal proceedings against Airbnb for failing to remove thousands of advertisements for unlicensed holiday accommodations from its platform.

The Ministry of Consumer Affairs had already issued the online booking platform with a warning about these properties, which were flagged as illegal tourist rentals without the proper licenses.

Despite this, the adverts remain active, prompting the watchdog to pursue disciplinary action. Airbnb has yet to issue a public statement on the matter.

For the past few years, Spain has been cracking down on illegal holiday rentals and every summer, an army of inspectors is sent out to weed out unlicensed holiday lets.

These types of practices can be classified as serious offences, with fines of up to 100,000 euros, but this amount can rise to between four and six times the illicit profit obtained.

In June, the government sent requests to several booking platforms for more information about certain properties they had posted, suspecting that many of them didn’t have a legitimate tourist license.

Following this, a second notice was sent to Airbnb, demanding that it “immediately” remove thousands of advertisements for tourist accommodations posted on its domain.

The booking platform did not remove them and the Consumer Affairs Department decided to open the case.

The Ministry of Consumer Affairs has confirmed that these illegal lets are being advertised right across Spain, flooding the market with profitable short-term rentals and, in many areas, depriving residents and locals of affordable housing.

"There are thousands of families in our country who are living on the edge because of housing, while a few are getting rich with business models that force people out of their homes," the minister explained in a statement this week, adding that "no company in Spain, however large or small, can be above the law."

This is the third investigation opened by the Consumer Affairs Department related to tourist apartments, after detecting various irregularities in real estate agencies last October due to abusive practices in temporary rentals.

A week ago, another investigation was launched against large tourist accommodation companies that could be engaging in "deceptive practices."

They stand accused of “hiding” behind misleading ads that cause holidaymakers to believe they are renting for a small, independent landlord rather than a large commercial operation. In this way, the companies are able to avoid certain costly overheads, such as having a customer service department.

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