SAN FRANCISCO (Legal Newsline) - A class action lawsuit alleges Airbnb's "assistance fee" on travel insurance is a mechanism intended to allow the company to charge more than allowed by California law.
A lawsuit was filed May 23 in California federal court by plaintiffs Jessica Hawley and Kiley Krzyzek against Airbnb Travel Insurance Agency LLC and Generali Assicurazioni Generali S.P.A. (U.S. Branch).
The plaintiffs allege that the defendants unlawfully bundled a so-called "assistance fee" with travel insurance premiums without proper disclosure, thereby violating California's Proposition 103, which mandates that insurance premiums must be pre-approved by the California Department of Insurance (CDI) and cannot include additional mandatory fees.
Neal Deckant
| Bursor & Fisher
The lawsuit claims that consumers were misled into paying more than the approved premium rates for travel insurance policies offered on various booking websites, including Airbnb.com.
The plaintiffs argue that these hidden fees were presented as part of the insurance premium but were actually additional charges for non-insurance services such as customer service and roadside assistance, which consumers neither wanted nor had the option to decline.
The complaint further asserts that these practices are deceptive, unfair, and unlawful under California law, depriving consumers of actuarially based rates for insurance. The plaintiffs seek legal and equitable remedies on behalf of themselves and other similarly situated individuals who purchased travel insurance from the defendants.
Neal Deckant and others at Bursor & Fisher represent the plaintiffs.