Harrington v. Airbnb, Inc.
Harrington v. Airbnb, Inc.
Opinion of the Court
After hearing from the parties on Defendant's motion to dismiss Plaintiffs' putative class action complaint, United States Magistrate Judge Youlee You issued her Findings and Recommendation ("F&R"). Judge You recommended that the Court dismiss the original complaint with leave to file an amended pleading. The Court adopted in part Judge You's F&R, and Plaintiffs filed their first amended complaint ("FAC"). Defendant then moved to dismiss the FAC with prejudice, and Judge You issued an F&R recommending that the motion be granted without leave to file a second amended complaint. Judge You concluded that the FAC did not allege facts sufficient to show that Defendant acted with discriminatory intent, which is required to state a claim under the Oregon Public Accommodations Act ("OPAA"). See Or. Rev. Stat. §§ 659A.403, 659A.885(7). Because Judge You concluded that Plaintiffs did not adequately allege discriminatory intent, she did not reach the question of whether Defendant's business is a place of public accommodation, which is also required to state a claim under the OPAA. Plaintiffs timely objected to the entirety of the F&R concerning the FAC. After de novo review,
*1087REJECTS IN PART the F&R at issue and DENIES Defendant's motion to dismiss Plaintiffs' FAC.
BACKGROUND
Defendant Airbnb, Inc. ("Airbnb") is a Delaware corporation, headquartered in California. Charging various fees for its services, Airbnb operates an online platform that connects people looking to rent out their homes (or rooms in their homes) with people looking for accommodations for either lodging or tourism experiences. Airbnb does not own any of the properties that it lists for rent. Instead, it charges fees for processing each transaction (often to both sides of a rental relationship), as well as for providing advertising. In 2016, Airbnb's online platform (consisting of websites and mobile apps) served more than 300,000 renters in Portland.
A person offering to rent out a room in his or her home (or offering to rent his or her home) through Airbnb is referred to as a "host." A host must be registered with Airbnb as a "member." Travelers who rent rooms or homes from a host using the Airbnb online platform are referred to as "guests." Although anyone can search the Airbnb database of more than two million properties worldwide, to contact a host online and request a reservation and make a booking, a prospective guest also must be a member of Airbnb, which requires the prospective guest to have an account and profile with Airbnb. Airbnb requires each member's profile to include, among other things, a photograph of the member's face and the member's full name. When a prospective guest sends a request to a host to reserve or book an accommodation listed on the Airbnb online platform, Airbnb sends information to the host about the prospective guest, including the prospective guest's photograph and full name. Although some Airbnb hosts may elect to participate in Airbnb's "instant booking" feature,
Because Airbnb allows hosts to view the photograph and name of a prospective guest before deciding whether to accept or deny a booking request from that prospective guest, a host can deny a booking request for any reason, including the race or color of a prospective guest. Airbnb is aware that some hosts refuse to rent accommodations to prospective guests on the basis of race or color. Airbnb is also aware that African-Americans are less likely to be confirmed for booking as guests on Airbnb's online platform than are persons who are not African-Americans. Because some hosts refuse to rent accommodations to African-Americans, some accommodations listed on Airbnb's online platform are unavailable to African-American travelers. African-Americans, thus, do not have full and equal access to the accommodations and services offered on Airbnb's online platform.
Airbnb does not dispute that some Airbnb hosts engage in racially discriminatory conduct. Airbnb asserts that it takes *1088seriously the problem of racial discrimination on its online platform. Nonetheless, Airbnb has continued to maintain its policy of allowing hosts to wait to make a booking decision until after the host has seen the prospective guest's photograph, which discloses the race or color of the prospective guest. Airbnb explains that requiring a prospective guest to include a photograph of his or her face allows a host to learn more information about the prospective guest before deciding whether to accept a booking request from that person. Airbnb states that viewing a photograph of a prospective guest before accepting a booking allows a host to conclude that a guest is "reliable, authentic, and committed to the spirit of Airbnb."
Plaintiffs in this putative class action are African-American women who reside in Oregon and wish to become members of Airbnb and use the services of Airbnb's online platform without being subject to racial discrimination.
Before filing this lawsuit, Ms. Harrington wrote a letter to Airbnb requesting that it change its policies so that all accommodations on its online platform may be available to all prospective guests regardless of race or color. Ms. Harrington specifically asked Airbnb to change its policy that allows a host to wait to confirm a booking until after the host has seen the full name and photograph of a prospective guest. She expressly asked Airbnb not to provide information to hosts before accepting a reservation or confirming a booking from a prospective guest that would reveal statutorily-protected immutable characteristics, like race. Airbnb denied the request to change its policy, but offered to assist Ms. Harrington in securing alternative accommodations if she ever were discriminated against by an Airbnb host. Airbnb also promised to investigate any reported claims of racial discrimination and take appropriate action.
LEGAL STANDARDS
A motion to dismiss for failure to state a claim may be granted only when there is no cognizable legal theory to support the claim or when the complaint lacks sufficient factual allegations to state a facially plausible claim for relief. Shroyer v. New Cingular Wireless Servs., Inc. ,
A complaint must contain sufficient factual allegations to "plausibly suggest an entitlement to relief, such that it is not unfair to require the opposing party to be subjected to the expense of discovery and continued litigation." Starr ,
DISCUSSION
A. Oregon Public Accommodations Act
Consistent with the Court's earlier opinion adopting a previous F&R, Judge You concluded that a violation of the OPAA requires proof of discriminatory intent, and not merely a discriminatory effect. Although Plaintiffs argue that the Court should reconsider its earlier conclusion that the OPAA is a "discriminatory intent" statute, as opposed to a "discriminatory effect" law, the Court declines to do so. The Court's conclusion tracks both the plain text of the statute and the case law interpreting it. See Or. Rev. Stat. § 659A.403 (prohibiting discrimination "on account of" protected characteristics); Menchu v. Legacy Health ,
B. Plaintiffs Allegations of Discriminatory Intent
Although Plaintiffs must allege discriminatory intent in a non-conclusory fashion, circumstantial evidence can be sufficient. See Lindsey v. SLT Los Angeles, LLC ,
Plaintiffs allege that Airbnb acted with discriminatory intent when it devised and chose to maintain its mandatory photograph policy, even after Airbnb became aware that its policy was leading to racial discrimination on its platform. This allegation sufficiently pleads that Airbnb intentionally makes many of the accommodations listed on its online platform unavailable to Plaintiffs and others on account of their race by maintaining policies that enable hosts to refuse service to prospective guests who are African-American. Because African-Americans do not have full and equal access to all the accommodations on the Airbnb online platform to which persons who are not African-Americans have access, Plaintiffs have plausibly alleged that they are being treated differently than prospective guests who use the Airbnb online platform but are not African-Americans.
Defendants argue that Plaintiffs have not alleged sufficient facts to show that Airbnb acted with the requisite discriminatory intent. In pleading discriminatory intent on the part of Airbnb, however, Plaintiffs also allege that Airbnb's proffered reason for maintaining its photograph policy-that it tells a host whether a prospective guest is "reliable, authentic, and committed to the spirit of Airbnb"-is a pretext for discriminatory motive. Plaintiffs allege that a photograph of a prospective guest's face reveals nothing meaningful about whether that person is "reliable, authentic, and committed to the spirit of Airbnb." Because Airbnb's proffered race-neutral reason for the challenged policy plausibly is a sham designed to conceal discriminatory motive, Plaintiffs have adequately pleaded circumstantial evidence of discriminatory intent.
Defendant narrowly reads Plaintiffs' FAC as arguing only that Airbnb's discriminatory intent can be inferred from Airbnb's awareness that hosts are taking advantage of the photograph policy to discriminate on the basis of race. As explained by Defendant, merely knowing that a policy has discriminatory effects does not constitute discriminatory intent. See Wood v. City of San Diego ,
Plaintiffs, however, allege more than just Airbnb's knowledge of the discriminatory effects of its policies and that Airbnb is aware of the racial discrimination practiced on its platform. Plaintiffs also allege that when Airbnb repeatedly reaffirmed and recommitted to its mandatory photograph policy, Airbnb made a calculated decision that it was not only willing to tolerate racial discrimination on its online platform rather than risk losing potential hosts and potential revenues, but it was also intentionally enabling, and thus furthering, racial discrimination. Airbnb knows that some of its hosts discriminate on the basis of race. Yet, with that knowledge, Airbnb has designed, imposed, and recommitted to features (specifically, its mandatory photograph policy) that, Plaintiffs allege, enables racial discrimination, in order not to lose the business of hosts who seek to discriminate on the basis of race or color.
*1091Evidence that Airbnb's proffered reason for its challenged mandatory photograph policy is pretextual, as Plaintiffs allege, is circumstantial evidence that the underlying motivation is discriminatory. See Lindsey ,
Thus, a plaintiff can survive a motion to dismiss by plausibly alleging that the actor's proffered reason for its allegedly discriminatory policy is unworthy of credence. See Nicholson v. Hyannis Air Serv., Inc. ,
Plaintiffs allege that a photograph of a person's face does not reveal the legitimate information that Airbnb claims it does. Looking at a photograph of a person's face reveals no meaningful information about whether that person is "reliable, authentic, or committed to the spirit of Airbnb." What Airbnb's mandatory photograph policy does do, however, is reveal a prospective guest's race or color, thereby giving a host the ability to deny a request from a prospective guest on account of race or color. Plaintiffs have sufficiently alleged that it is plausible that Airbnb's policy of allowing hosts to review a prospective guest's photograph before booking , rather than after, primarily serves to enable and facilitate racial discrimination. Because Plaintiffs have plausibly alleged that the proffered reason for the mandatory photograph policy is a pretext designed to enable and shield discriminatory motive, Plaintiffs have alleged that Airbnb acted with discriminatory intent sufficient to state a claim under the OPAA.
At this stage of the litigation, Plaintiffs' well-pleaded allegations are presumed true and must be viewed in the light most favorable to Plaintiffs. Defendants argue that the Court should ignore these allegations under Iqbal as merely conclusory and non-factual. Iqbal ,
The facts giving rise to an inference of discriminatory intent are not significantly different from the facts alleged in Williams v. Thant Co. , another case brought under the OPAA. See
C. Place of Public Accommodation
Because Judge You concluded that Plaintiffs had not adequately alleged intentional discrimination, Judge You declined to reach whether Airbnb is a place of public accommodation under the OPAA. Airbnb argues that it is not. Airbnb contends that it falls within the category of "institution, bona fide club or place of accommodation that is in its nature distinctly private." Or. Rev. Stat. § 659A.400(2)(e). Airbnb hosts rent out privately-owned accommodations, generally their homes or rooms in their homes. Further, because hosts allow people into their homes, they retain full discretion over which guests they choose to allow. Indeed, it is this discretion that Airbnb recognizes has allowed so many hosts to deny accommodations to African-Americans based on race or color. Because it is a host, and not Airbnb directly, that offers the accommodations or lodgings, Airbnb argues, Airbnb is not a place of public accommodation under the OPAA. Further, Airbnb argues that it is a "distinctly private" organization and, thus, exempt from complying with Oregon's anti-discrimination public accommodation law.
Airbnb's argument rests on a narrow reading of the statute. The OPAA defines a "place of public accommodation" as "[a]ny place or service offering to the public accommodations, advantages, facilities or privileges whether in the nature or goods, services, lodgings, amusements, transportation or otherwise." Or. Rev. Stat. § 659A.400(1)(a) (emphasis added). Airbnb does not own the actual homes or rooms that its member hosts rent out to guests, but whether the individual hosts themselves are distinctly private entities is a different question from whether Airbnb is a distinctly private entity for purposes of the OPAA. Airbnb is a "service offering to the public ... [certain] services," namely, the service of searching for, finding, and booking an accommodation using its online platform. Further, even though users must join Airbnb as a member and create a member profile to be allowed access to Airbnb's online platform services, entities still may be open to the public "de facto" when they are "so unselective in their membership criteria that they are effectively *1093public." Lahmann v. Grand Aerie of Fraternal Order of Eagles
The Oregon Supreme Court has declared that the definition of a place of public accommodation under the OPAA "is intended to be a broad one and to apply to all types of businesses which offer goods and/or services to the public." Schwenk v. Boy Scouts of Am. ,
CONCLUSION
The Court ADOPTS IN PART AND REJECTS IN PART the Magistrate Judge's F&R (ECF 48) and DENIES Defendant's Motion to Dismiss the First Amended Complaint (ECF 44).
IT IS SO ORDERED.
Under the Federal Magistrates Act, a district court may "accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate."
If a host has opted into the instant booking feature, a prospective guest may immediately book an accommodation that is available on the dates requested by the guest without needing to wait for the host's approval.
After commencing this lawsuit, Plaintiff Patricia Harrington passed away. Plaintiffs Carlotta Franklin and Ebony Price continue to prosecute this action. The personal representative of Ms. Harrington's estate has not yet requested substitution. See Or. Rev. Stat. § 659A.001(9) ; Weeg ex rel. Weeg v. Ortiz & Assocs., Inc. ,
Reference
- Full Case Name
- Patricia HARRINGTON, Ebony Price, and Carlotta Franklin, Individually and on Behalf of All Others Similarly Situated v. AIRBNB, INC.
- Cited By
- 6 cases
- Status
- Published