A proposed class action lawsuit was filed against short-term rental vacation company, Airbnb. The California suit, filed by a Texas rental host, alleges that Airbnb breached a contract, breached a fiduciary duty and is in violation of California consumer protection laws. Due to the COVID-19 pandemic, the host claims the company offered full refunds to guests. The host alleges Airbnb owes them $655 from canceled reservations by Airbnb.

An extenuating circumstances policy was enacted by Airbnb in March. This policy was to provide full refunds for bookings due to the pandemic. This policy overrode a hosts’ individual refund policy. Guests then stepped forward with complaints that they were not able to recoup their money in full as well as the steps needed to request one. Airbnb then offered hosts 25% of a hosts’ normal refund policy; however, many hosts have claimed they are not receiving those as well.