AIRBNB platform condemned by GOLDWIN AVOCATS
French Platform Law lawyer -  6 February 2018  -  Tribunal d'Instance

AIRBNB ordered to pay civil liability costs

AIRBNB ordered to pay civil liability costs
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Object of the decision

By a judgment of the District Court dated February 6, 2018,  the AIRBNB platform was condemned on the basis of the common law of civil liability.

A host had illegally sublet his accommodation for a period exceeding the limit of 120 days per year.

The platform was then accused of not having complied with the provisions of Article L.324-2-1 of the Tourism Code, which provided (article amended by the law of 23 November 2018) that:

I. – Any person who engages in or provides assistance for remuneration, through an intermediary or negotiation activity or through the provision of a digital platform, in the rental of accommodation subject to Article L. 324-1-1 of this Code and Articles L. 631-7 et seq. of the Construction and Housing Code shall inform the lessor of the prior declaration or authorization obligations provided for in these articles and obtain from him, prior to the rental of the property, a declaration on his honor attesting to compliance with these obligations, indicating whether or not the accommodation constitutes his principal residence within the meaning of Article 2 of Law No. 89-462 of July 6, 1989, as well as, where applicable, the declaration number of the accommodation, obtained pursuant to II of Article L. 324-1-1 of this Code.

II. – Any person who engages in or provides assistance for remuneration, through an intermediary or negotiation activity or through the provision of a digital platform, in the rental of furnished premises subject to II of Article L. 324-1-1 and Articles L. 631-7 et seq. of the Construction and Housing Code publishes in the advertisement relating to the premises, their declaration number, obtained pursuant to II of Article L. 324-1-1 of this Code.

It ensures that the accommodation offered for rental or subletting is not rented for more than one hundred and twenty days per year through its intermediary when the accommodation constitutes the principal residence of the lessor within the meaning of Article 2 of Law No. 89-462 of 6 July 1989 cited above. To this end, when it becomes aware of it, it counts the number of nights occupied, and informs, at its request, annually, the municipality of the rented accommodation. Beyond one hundred and twenty days of rental, the accommodation can no longer be the subject of an offer of rental through its intermediary until the end of the current year.

III. – The methods of monitoring and sanctioning breaches of the obligations provided for in II of this article are set by decree.

The Court was then able to note that:

– the platform had not informed its host of its obligations;

– the platform did not provide proof of having obtained a declaration on honour from its host;

– the accommodation had been sublet for more than 120 days per year;

– the platform had not made any annual statement;

– the platform had been alerted to the illegal advertisement which it had not removed.

The District Court then concluded that:

“AIRBNB has undeniably failed to meet its legal obligations and provided Mr. L with the means to avoid his contractual obligations without the latter’s unlawful actions being such as to exclude his own liability. Furthermore, it has, with a degree of bad faith and perhaps in collusion with Mr. L, allowed the breaches to continue.”

On the basis of Articles 1240 and 1241 of the Civil Code, the platform was ordered to pay €3,000 in compensation for moral damages, €1,664.86 in material damages, €1,869.07 in restitution of royalties received, €1,500 under Article 700 in addition to costs.

The platform has not appealed this judgment, which is final and irrevocable.