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Airbnb Vows to Fight Racism, but Its Users Can’t Sue to Prompt Fairness Airbnb Vows to Fight Racism, but Its Users Can’t Sue to Prompt Fairness
(about 5 hours later)
SAN FRANCISCO — Brian Chesky, chief executive of Airbnb, made a vow this month to root out bigotry from his business.SAN FRANCISCO — Brian Chesky, chief executive of Airbnb, made a vow this month to root out bigotry from his business.
His online room-sharing company has recently been grappling with claims of discrimination, with several Airbnb users sharing stories on social media about how they were supposedly denied a booking because of their race. The issue came into the open in December, when a working paper by Harvard University researchers found it was harder for guests with African-American-sounding names to rent rooms through the site.His online room-sharing company has recently been grappling with claims of discrimination, with several Airbnb users sharing stories on social media about how they were supposedly denied a booking because of their race. The issue came into the open in December, when a working paper by Harvard University researchers found it was harder for guests with African-American-sounding names to rent rooms through the site.
“This is a huge issue for us,” Mr. Chesky said at a company event in San Francisco in early June. “We will be revisiting the design of our site from end to end to see how we can create a more inclusive platform.”“This is a huge issue for us,” Mr. Chesky said at a company event in San Francisco in early June. “We will be revisiting the design of our site from end to end to see how we can create a more inclusive platform.”
But even as Mr. Chesky promised to stamp out racism from Airbnb, the company’s class-action litigation policy makes it tough — if not impossible — for customers to push the start-up to make any substantive changes on the issue. Airbnb requires that people agree to waive their right to sue, or to join in any class-action lawsuit or class-action arbitration, to use the service.But even as Mr. Chesky promised to stamp out racism from Airbnb, the company’s class-action litigation policy makes it tough — if not impossible — for customers to push the start-up to make any substantive changes on the issue. Airbnb requires that people agree to waive their right to sue, or to join in any class-action lawsuit or class-action arbitration, to use the service.
That clause, known as a class-action waiver, crops up whenever someone logs into Airbnb’s site. In March, the company updated its terms of service for new users, partly to highlight that clause. Last month, Airbnb users were unable to log in and use their accounts until they agreed to the updated terms, including the class-action waiver language.That clause, known as a class-action waiver, crops up whenever someone logs into Airbnb’s site. In March, the company updated its terms of service for new users, partly to highlight that clause. Last month, Airbnb users were unable to log in and use their accounts until they agreed to the updated terms, including the class-action waiver language.
The waiver clause can be broadly applied to many issues, not just accusations of discrimination. But class-action lawsuits have been particularly effective legal tools to press companies on their discrimination policies over the years, civil rights lawyers said, which would give Airbnb more cause to wield it as it grapples with the issue. In the past, such suits against Merrill Lynch, Morgan Stanley and Coca-Cola pushed those companies to change hiring and workplace practices.The waiver clause can be broadly applied to many issues, not just accusations of discrimination. But class-action lawsuits have been particularly effective legal tools to press companies on their discrimination policies over the years, civil rights lawyers said, which would give Airbnb more cause to wield it as it grapples with the issue. In the past, such suits against Merrill Lynch, Morgan Stanley and Coca-Cola pushed those companies to change hiring and workplace practices.
“Class-action cases have been the only effective way to prove and remedy systemic discrimination because you can’t prove a pattern of behavior with individually filed cases,” said Joanne Doroshow, executive director of New York Law School’s Center for Justice and Democracy, who specializes in civil justice issues.“Class-action cases have been the only effective way to prove and remedy systemic discrimination because you can’t prove a pattern of behavior with individually filed cases,” said Joanne Doroshow, executive director of New York Law School’s Center for Justice and Democracy, who specializes in civil justice issues.
The waiver clause and Airbnb’s more prominent placement of it allows it to shield itself now from outside pressure around the discrimination issue and to handle the matter at its own pace and on its own terms.The waiver clause and Airbnb’s more prominent placement of it allows it to shield itself now from outside pressure around the discrimination issue and to handle the matter at its own pace and on its own terms.
“Airbnb can say it doesn’t condone racism and even has an anti-discrimination policy, but right now that policy doesn’t have teeth if the company is legally insulated from having to comply with the same anti-discrimination laws that real estate brokers must comply with,” said Jamila Jefferson-Jones, a civil rights lawyer and an associate professor at Barry University School of Law. “Airbnb can say it doesn’t condone racism and even has an anti-discrimination policy, but right now that policy doesn’t have teeth if the company is legally insulated from having to comply with the same anti-discrimination laws that real estate brokers must comply with,” said Jamila Jefferson-Jones, an associate professor of law at the University of Missouri, Kansas City.
A spokesman for Airbnb said that the company was open about its dispute resolution policies, including the waiver clause, and that “these provisions are common and we believe ours is balanced and protects consumers.”A spokesman for Airbnb said that the company was open about its dispute resolution policies, including the waiver clause, and that “these provisions are common and we believe ours is balanced and protects consumers.”
In an interview, Chris Lehane, the head of global policy for Airbnb, said the company was being proactive in dealing with discrimination claims. Airbnb recently removed two of its hosts, including one for writing racist epithets to a black user and another for refusing a transgender woman as a guest. Mr. Lehane said the company suspended, or in some cases permanently banned, those who violated its anti-discrimination policy.In an interview, Chris Lehane, the head of global policy for Airbnb, said the company was being proactive in dealing with discrimination claims. Airbnb recently removed two of its hosts, including one for writing racist epithets to a black user and another for refusing a transgender woman as a guest. Mr. Lehane said the company suspended, or in some cases permanently banned, those who violated its anti-discrimination policy.
Airbnb this month also hired Laura Murphy, the former head of the American Civil Liberties Union’s Washington legislative office, as an outside adviser to look at the issue. Ms. Murphy said Airbnb was examining its internal structures and technology, and its processes for identifying and handling discrimination incidents, and building relationships with organizations like fair housing, human rights and travel groups.Airbnb this month also hired Laura Murphy, the former head of the American Civil Liberties Union’s Washington legislative office, as an outside adviser to look at the issue. Ms. Murphy said Airbnb was examining its internal structures and technology, and its processes for identifying and handling discrimination incidents, and building relationships with organizations like fair housing, human rights and travel groups.
Airbnb aims to have announcements in the next 10 days about preliminary actions it is taking on discrimination, and it plans to have a full report with proposed remedies in September, she said. Eventually, the company wants to have a division to handle and resolve discrimination complaints, Ms. Murphy added.Airbnb aims to have announcements in the next 10 days about preliminary actions it is taking on discrimination, and it plans to have a full report with proposed remedies in September, she said. Eventually, the company wants to have a division to handle and resolve discrimination complaints, Ms. Murphy added.
“Litigation is always an option, but we think it’s better to take the time and effort to resolve problems if we can,” she said in an interview.“Litigation is always an option, but we think it’s better to take the time and effort to resolve problems if we can,” she said in an interview.
When there is litigation, Airbnb has not been afraid to use the class-action waiver clause. In March, the company cited the clause in fighting a class-action suit that accused Airbnb of acting as an unlicensed real estate broker. The company said the suit was moot because the plaintiffs had agreed to waive their class-action rights and, in a related clause, agreed to resolve disputes through individual arbitration. The judge in the case is now deciding whether it should be placed in the hands of an arbitrator.When there is litigation, Airbnb has not been afraid to use the class-action waiver clause. In March, the company cited the clause in fighting a class-action suit that accused Airbnb of acting as an unlicensed real estate broker. The company said the suit was moot because the plaintiffs had agreed to waive their class-action rights and, in a related clause, agreed to resolve disputes through individual arbitration. The judge in the case is now deciding whether it should be placed in the hands of an arbitrator.
“Airbnb is willing and eager to use the class-action waiver and arbitration clause,” said Jeffrey Norton, the lawyer who filed that suit in February.“Airbnb is willing and eager to use the class-action waiver and arbitration clause,” said Jeffrey Norton, the lawyer who filed that suit in February.
Airbnb may soon test the waiver clause directly in a class-action discrimination suit, which was filed in May in the United States District Court in Washington. The chief plaintiff, Gregory Selden, who is African-American, claimed Airbnb violated civil rights laws that forbid housing discrimination when a host on the service denied him accommodation last year because of his race. Airbnb’s response to the lawsuit is due by July 13.Airbnb may soon test the waiver clause directly in a class-action discrimination suit, which was filed in May in the United States District Court in Washington. The chief plaintiff, Gregory Selden, who is African-American, claimed Airbnb violated civil rights laws that forbid housing discrimination when a host on the service denied him accommodation last year because of his race. Airbnb’s response to the lawsuit is due by July 13.
Ikechukwu Emejuru, the lawyer representing Mr. Selden, said, “The sharing economy has grown exponentially, and Mr. Selden’s experiences of not being accommodated by Airbnb because of his race put in motion this country’s most iconic civil rights laws.” He declined to comment further and said Mr. Selden was unavailable to comment.Ikechukwu Emejuru, the lawyer representing Mr. Selden, said, “The sharing economy has grown exponentially, and Mr. Selden’s experiences of not being accommodated by Airbnb because of his race put in motion this country’s most iconic civil rights laws.” He declined to comment further and said Mr. Selden was unavailable to comment.
For Airbnb, an effective response to discrimination claims is needed to blunt any fallout on its business. The company, valued at about $25 billion, has hosts in more than 34,000 cities and 191 countries and is positioning itself as an alternative to hotels. Airbnb recently raised $1 billion in debt to help finance its growth, according to a person familiar with the deal who spoke on the condition of anonymity because the transaction is not public. The credit facility was reported earlier by Bloomberg.For Airbnb, an effective response to discrimination claims is needed to blunt any fallout on its business. The company, valued at about $25 billion, has hosts in more than 34,000 cities and 191 countries and is positioning itself as an alternative to hotels. Airbnb recently raised $1 billion in debt to help finance its growth, according to a person familiar with the deal who spoke on the condition of anonymity because the transaction is not public. The credit facility was reported earlier by Bloomberg.
Airbnb’s expansion depends partly on whether people of different nationalities and ethnicities feel welcomed to the platform in the same nondiscriminatory way that they are welcomed at international hotel chains. Two rival room-sharing services, Innclusive and Noirbnb, are now marketing themselves as services that provide inclusive and safe short-term rentals for people of any race or ethnicity.Airbnb’s expansion depends partly on whether people of different nationalities and ethnicities feel welcomed to the platform in the same nondiscriminatory way that they are welcomed at international hotel chains. Two rival room-sharing services, Innclusive and Noirbnb, are now marketing themselves as services that provide inclusive and safe short-term rentals for people of any race or ethnicity.
Ms. Murphy, the Airbnb adviser, said the company recognized that eliminating discrimination was in its best interests. She said Airbnb’s relative youth — the company was founded in 2008 — meant it could deal with the issue in a more agile way than companies with entrenched cultures that may have needed the pressure of litigation to do the right thing.Ms. Murphy, the Airbnb adviser, said the company recognized that eliminating discrimination was in its best interests. She said Airbnb’s relative youth — the company was founded in 2008 — meant it could deal with the issue in a more agile way than companies with entrenched cultures that may have needed the pressure of litigation to do the right thing.
“Airbnb is part of a new area of commerce, and the conditions for transactions are still developing,” she said. “That’s why it’s important to get it right.”“Airbnb is part of a new area of commerce, and the conditions for transactions are still developing,” she said. “That’s why it’s important to get it right.”