Airbnb sign Airbnb. Photo: AlesiaKan/Shutterstock.com

Airbnb has changed the way it displays offers and prices on its online platform – a move that brings it into compliance with EU consumer protection law and enables the company to avoid paying multimillion-euro fines.

The European Commssion on Thursday announced that the San Francisco-based company had passed a year-long probe by its consumer watchdog, the Consumer Protection Cooperation Network.

"For these summer holidays, Europeans will simply get what they see when they book their holidays," Věra Jourová, commissioner for justice, consumers and gender equality, said in a statement. "Comparing and booking online hotel or accommodation has made it fast and easy for consumers. Now consumers can also trust that the price they see on the first page will be the price to pay in the end."

Jourová commended Airbnb for cooperating with the European Commission and national consumer protection authorities to improve the way its platform works.

"I expect other platforms to follow suit, " she said.

Airbnb changed how it presents offers after the European Commission warned in July 2018 that its practices did not respect EU consumer law. One of the Commission's main complaints was that consumers faced higher-than-expected prices at the time of booking, as cleaning fees and other charges were added at the last stage.

Now, search results display the final price that consumers have to pay. This price includes all charges, including cleaning and other fees. The platform will also state clearly if the property is being offered by a private individual or a professional.

Airbnb's website will also clearly display a link to a dispute resolution platform.

The company has also revised its terms of service to make clear that users can bring a case against Airbnb before the courts of their country of residence and that users' basic legal rights to sue a host in case of personal harm or other damages will be respected. The company also pledges not to unilaterally change the terms and conditions without clearly informing users in advance and without giving them the possibility to cancel the contract.