10,000 Hosts, LLC launched a document automation and self-help service today which seeks to assist 10,000 Airbnb hosts to file 10,000 arbitrations against Airbnb. Airbnb hosts claim that Airbnb violated its own terms of service, misrepresented its polices and engaged in consumer deception when it converted over $2 billion in host payouts to bolster its goodwill with travelers and IPO valuation. Hundreds of host arbitrations with large damage claims are already in process against Airbnb alleging that Airbnb violated its own Terms of Service. 10000hosts.com empowers hosts with smaller damage amounts to inexpensively and easily file their claims as well.
Why are hosts mad? Airbnb’s attorneys had previously decided that pandemics were not a valid reason to override the agreed 50-50 split of risk on cancellations by guests. But in early March 2020, Airbnb changed its mind and decided it was in Airbnb’s best interest to create new refund policies allowing 100% guest refunds and apply them retroactively to existing reservations. Airbnb interfered with hosts who were already working through COVID-19 travel issues, cancellations and credits with their guests. Hosts assert that Airbnb should have supported travelers with its own money, not payouts belonging to hosts.
Why is collective action through individual arbitration a game changer? Airbnb’s Terms of Service (TOS) require hosts with claims against Airbnb to file individual arbitrations with the American Arbitration Association. Airbnb TOS preclude class actions and collective arbitrations. Class action waiver clauses are common for platforms like Airbnb. Without the threat of a class action, website users are often left powerless. 10000hosts.com seeks to balance the scales. Collective action thorough individual arbitrations will be expensive for Airbnb to defend. Airbnb hosts pay a $200 filing fee to start arbitration. Airbnb has to pay all remaining arbitration costs and fees which can easily exceed $10,000 per arbitration. 10,000 arbitrations filed by 10,0000 Airbnb hosts will cost Airbnb approximately $100,000,000 in arbitration fees and costs.
10000hosts.com has worked with a leading document automation company Contractbook to build a platform which makes filing arbitration against Airbnb easy, informed and inexpensive. More importantly, 10000hosts.com provides hosts with the resources to win their arbitration. 10000hosts.com is a platform designed to take on a platform.
For the first time and after years of being powerless to stop Airbnb from interfering with their short term rental businesses and existing contracts, Airbnb hosts are standing together and demanding accountability and transparency. By creating a platform that inexpensively assists hosts in filing and winning arbitrations, 10000hosts.com seeks to empower the true creators of the sharing economy, Airbnb’s hosts who pay the mortgages, hire the workers, do the work and take the financial risks involved in sharing their homes with travelers to create five-star guest experiences.