The Ministry of Consumer Affairs has launched an investigation into holiday accommodation platforms for listing properties without proper licenses, which if confirmed, constitutes a violation of consumer laws and could result in fines of up to €100,000 for the owners of the properties.
This inquiry has been initiated after receiving reports from regional and municipal authorities about a significant number of unlicensed holiday rental properties.
A year ago, the official number of holiday rental properties in the Canary Islands was reported to be 42,651. However, AirDNA, a tool that tracks listings on platforms like Airbnb and Vrbo, registered 45,165 listings, both legal and illegal.
Additionally, the Canary Islands government database counted 42,370 properties. These discrepancies indicate that a portion of the holiday rental market is operating outside the regulations and without having a VV licence.
The Directorate General for Consumer Affairs has now sent inquiries to major accommodation platforms to obtain detailed information about the properties listed.
The ministry, led by Pablo Bustinduy, aims to use this information to assess the activities and responsibilities of large landlords and companies managing numerous rental properties across various regions. These entities may be engaging in unfair commercial practices as outlined in Article 47 of the consumer law.
Based on the gathered data, the ministry will consider initiating sanction proceedings against those involved in these illegal activities. These infractions could be classified as serious, with fines potentially exceeding €100,000 possibly reaching four to six times the illicit profits earned.
If the investigation confirms widespread violations, it could lead to significant penalties and stricter regulations for accommodation rental platforms. This move highlights the government's commitment to ensuring compliance with consumer protection laws and maintaining fair market practices.
