Failure to Refund Booked Amount By Airbnb: Chandigarh Consumer Commission Rules

In a stern reminder of consumer rights in the digital age, the District Consumer Disputes Redressal Commission-II, U.T. Chandigarh, has ruled against Airbnb India Private Limited for failing to process a refund following a property booking cancellation. The commission, led by President Amrinder Singh Sidhu and Member Brij Mohan Sharma, deemed the travel aggregator’s failure to act as both a "deficiency in service" and an "unfair trade practice."

A Vacation of Frustration The complainant, Tanya Walia, had booked a London-based studio apartment through the Airbnb platform for a late-December vacation. Despite paying a booking amount of Rs. 60,326.44, personal commitments necessitated that she cancel the stay.

What followed was a protracted ordeal of digital communication. According to the complaint, the platform explicitly acknowledged the cancellation and assured the customer that a refund would be processed. However, month after month passed, and the refund remained uncredited. Despite providing payout details and verifying the situation with her bank—only to find no funds had arrived—Walia was met with repetitive, unhelpful customer support responses and vague promises of a 10–12 business day wait.

The Commission’s Verdict Refusing to entertain the case, the representatives of Airbnb failed to appear before the commission, resulting in the case being decided ex-parte . The Commission noted that the company’s internal chat logs, provided as evidence, corroborated the complainant’s claim that a refund was owed.

In its order, the Bench observed:

"Once the OPs themselves admitted the complainant's entitlement to refund, they were under a legal obligation to process the same within a reasonable period. Their failure to refund the booking amount despite repeated assurances and repeated requests from the complainant amounts to deficiency in service and unfair trade practice ."

Legal Consequences The Commission concluded that the prolonged retention of the complainant's money without justification caused significant financial impact and mental harassment. Consequently, the Tribunal directed Airbnb to: 1. Full Refund: Return the principal booking amount of Rs. 60,326.44. 2. Interest: Pay interest at a rate of 9% per annum from March 4, 2025, until full realization. 3. Compensation: Pay an additional Rs. 10,000 to cover litigation expenses and mental agony.

Key Observations The verdict underscores a critical principle in consumer law regarding online service providers:

  • "The non appearance of the OPs shows that they have nothing to say in their defence against the allegations made by the complainant."
  • "The complainant has remained deprived of her hard-earned money for a considerable period without any justifiable reason."
  • "Such conduct on the part of the OPs has undoubtedly caused financial loss, inconvenience and mental harassment to the complainant, for which she deserves reasonable compensation."

This ruling serves as a warning to major travel aggregators that digital acknowledgment of a refund request is legally binding. Failure to act on promises made to customers now risks not only reputational damage but substantial financial penalties under consumer protection statutes. Airbnb has been granted 45 days to comply with the order.