Sei sulla pagina 1di 14

5.

AUGUST 1, 2017 LTFRB ORDER: show-cause order to Uber, after it finds


AIRBNB the TNC has continued to accept new drivers into its system despite being
a. Place of incorporation: Delaware ordered to stop doing so last July 26.
b. Principal place of business: San Francisco, California 6. AUGUST 14, 2017 LTFRB ORDER: suspends Uber's operations for one
c. 190 countries month. The board cites Uber's post on its Twitter account last August 1,
d. 65,000 cities where the company said that applications for vehicles were "being accepted
e. 3 million listings but not processed, as we are optimistic that with the ongoing discussions
f. 35 million guests with the LTFRB, ridesharing has a path forward."
g. Philippines 7. AUGUST 17, 2017: UBER drivers transfer to Grab first.

Active Hosts Listings B. UBER Violation


Metro Manila 5,427 12,837 1. Grab's accreditation expired last July and has not been renewed, but Grab
City of Manila 236 595 has so far complied with the LTFRB's orders to stop accepting and
Baguio 425 1,184 accrediting new drivers the rule that Uber supposedly violated.
2. Grab also immediately submitted to the LTFRB its masterlist of peer drivers
HOMEAWAY when the government board wanted to set a June 30 cutoff for drivers whose
1. Principal place of business: Austin, Texas, United States permits would be considered. Uber dilly-dallied, on the other hand.
2. Expedia parent organization
AIRBNB REGULATION
VRBO Arturo P. Boncato Jr., DOT assistant secretary for Mindanao cited the Canadian
1. Principal place of business: Austin, Texas, United States Province of Quebec which has alaw that required the same hotel taxes be put
2. Expedia and HomeAway parent organization upon on Airbnb establishments. The association also mentioned that Airbnb
establishments in the Philippines lack rules and decorum on dealing with guests
TRAVEL AGENCIES which can lead to neglecting the needs of the customers.
1. Booking.Com
2. TripAdvisor.Com Arturo P. Boncato Jr., DOT assistant secretary for Mindanao, said the present
3. Agoda.Com thinking here and abroad is leaning towards regulating listed host establishments
in Airbnb and similar online booking websites.
UBER/GRAB REGULATION AND VIOLATION The local government of Quebec, Canada has filed a bill requiring all Airbnb
A. Regulation establishments to pay the exact same taxes as regular hotels. This has already
1. 2015: DOTC through Secretary Jun Abaya, issued (D.O. 2015-011) which also been experienced in many parts of the world and I believe that should be the
amended D.O. 97-1097, effectively amending the classification of public direction in dealing this new way of booking and travel which is similar to Uber
transport conveyances. The 2015 D.O. provided nationwide regulations for itself in terms of getting their franchises paid and taxes, etc., Boncato said.
app-based transport services. The D.O. introduced a new type of
classification called Transportation Network Vehicle Service (TNVS) that Cynthia R. Mamon, TCP trustee, said the hotel industry is apprehensive of
allows Transportation Network Companies (TNC) such as Uber to conform Airbnb hosted establishments because they are not accredited with the DOT and
within the present regulatory framework. have no standards to comply with when dealing with guests and
2. JULY 21, 2016 LTFRB Memorandum Circular 2016-008: suspends the accommodations.
acceptance and processing of applications for Uber, Grab, and other TNCs. One bag egg, whether accredited or not, will spoil the whole basket, Mamon
The order stops the release of temporary permits to Grab and Uber vehicles. said. If we cannot police our own ranks, and encourage everyone to register with
3. JULY 11, 2017 LTFRB ORDER: For defying its order to stop accepting new the DOT, how can we police the foreigners who come here and own our national
drivers, the LTFRB imposes a fine of P5 million each on Uber and Grab. landscapes and hospitality establishments?
4. JULY 26, 2017 LTFRB ORDER:
a. orders Grab and Uber to deactivate drivers who registered in their These fiercely independent properties are regulated by Quebec law as well as
systems after June 30, 2017 through licenses which cover safety, health and other related matters. These
b. orders both companies to provide a master list of all their drivers as B&B owners also pay commercial property tax, contribute to local tourism
of June 30, 2017 contributions (in essence, another tax), and provincial and federal sales taxes. In

1
a nutshell, these are good corporate citizens and true hoteliers, admittedly on a Smoke and carbon monoxide detectors are an important part of making Airbnb a
smaller scale than the Fairmont. trusted travel option for companies. As part of our commitment to guest safety,
Airbnb offers free smoke and carbon monoxide detectors for hosts.
DOT-7 regional director Catalino Chan III said the department is now on the
process of standardizing this particular category in the accommodation sector. 4. Reviews and response rate
While this home sharing app is obviously growing in the Philippines and is in a a. Listings must have at least 3 star rated reviews before they can be
way helping the accommodation shortage problems in popular destinations, eligible for Business Travel Ready status. For listings with 3 or more
Chan said it has to have an accreditation platform to protect tourists. star rated reviews, at least 60% of both the listings primary reviews,
and the listings reviews for cleanliness and accuracy must be 5 star
Reportedly, one of the major reasons why the home sharing app has become a reviews.
hit among tourists is largely due to the fact that the rates are cheaper than hotels. b. Hosts of Business Travel Ready listings also must have responded
to 90% of booking requests within 24 hours over the last year.
Although DOT is also now working on the reviewed accreditation and rating 5. Cancellations
system for hotels, the creation of standardization structure of Airbnb is a bit a. Hosts of Business Travel Ready listings must provide a 7-day
complicated, thus DOT is still processing datas and information on this new cancellation commitment to reservations. If a listing has a
concept. cancellation within 7 days of a confirmed check-in date, it can't be
considered for Business Travel Ready for 1 year from the
AIRBNB BUSINESS TRAVEL READY cancellation date.
1. Business Travel Ready listings must be an Entire Home/Apt and an eligible 6. Eligibility
property type (house, apartment, bed & breakfast, bungalow, cabin, chalet, a. Listings and their hosts are evaluated for business travel readiness
townhouse, villa, guesthouse, entire floor, hotel, loft, or condo). The listing on a rolling basis. Keep in mind that you and your listing need to
must be no smoking, and cant have pets on the property. continue to qualify after the initial evaluation in order to maintain
2. The space Business Travel Ready status.
a. Many business travelers are new to traveling on Airbnb, so weve
limited Business Travel Ready listings to certain property types to BTR Evaluations
help make sure guests know what to expect when they arrive. 1. Qualification is automatically evaluated based on information a Host provides
b. As a part of this, and because of the potential for allergies and other about a Listing, the reviews for that Listing, the responsiveness of the Host to
sensitivities, we also ask that Business Travel Ready listings are booking requests, and the Hosts cancelation history for confirmed bookings.
smoke-free properties and dont have pets living in the space while Eligibility for a BTR badge is automatically evaluated on a regular schedule
the guest is there. determined by Airbnb. In evaluating the Hosts responsiveness to booking
c. If a pet lives in your space, but wont be there during your guests requests, the BTR Program considers data from the preceding 12 months.
stay we ask that youre aware of travelers potential allergens and 2. Airbnb may, but is not obligated to, notify Hosts of the revocation of their
make sure your listing is cleaned before your guests arrival. Listings BTR status. A Host whose Listing has had its BTR status revoked
3. Amenities will automatically be reevaluated on the first day of each calendar quarter.
The listing must also have the following Business Travel Ready amenities: 3. If your Listing qualifies for BTR status, a BTR badge indicating your status
will automatically be added to the Listing and will remain for as long as you
Wireless Internet
continue to qualify. Occasionally it may take some time for our automated
A laptop-friendly workspace systems to add the badge to a Listing. The delay in the appearance of the
Self check-in (this includes a key lockbox, doorman, keypad, or badge doesn't impact your Listings BTR status, and you will still be able to
smartlock) receive the benefits once your Listing qualifies as a BTR Listing.
A smoke detector 4. BTR Badge
A carbon monoxide detector a. Any use of the BTR badge not specifically allowed by these terms is
Essentials (toilet paper, clean towels, and fresh linens) not permitted. You are not allowed to use or display your BTR
An iron badge outside of your Listing.
Hangers b. If your Listing qualifies for BTR status, this does not give you any
A hair dryer ownership or other proprietary rights in the BTR badge or other
Shampoo Airbnb intellectual property, other than as provided in these terms.

2
Airbnb retains all rights, title and interest in and to the BTR badge, system failure, or for any damages for personal or bodily injury or
trademark, and other protected materials. emotional distress arising out of or in connection with these terms or
5. Having a BTR badge the btr program.
a. We want Hosts to be proud of their Listings BTR status, but please
dont: RELEVANT LAWS
Claim to be endorsed by an agent or representative of Airbnb, or
otherwise misrepresent your association with Airbnb. CONSTITUTION
Use your BTR badge in association with any materials that are false, Section 9. The State shall protect consumers from trade malpractices and from
misleading, offensive, defamatory, obscene, vulgar, pornographic, substandard or hazardous products.
harassing, illegal, or that violate the rights of any third party.
Commercialize the BTR badge (such as by creating, importing, or CONSUMER ACT
selling merchandise with the BTR badge or by displaying your BTR 1. ARTICLE 2. Declaration of Basic Policy. It is the policy of the State to
badge on third party websites or mobile applications). protect the interests of the consumer, promote his general welfare and to
6. Benefits establish standards of conduct for business and industry. Towards this end,
a. BTR Listings are identified with a BTR briefcase badge, which the State shall implement measures to achieve the following objectives:
business travelers can use to identify Listings that may be suited to a. protection against hazards to health and safety;
their needs. Airbnb may add benefits, modify benefits or discontinue b. protection against deceptive, unfair and unconscionable sales acts
the badge or any other benefits associated with the BTR Program at and practices;
any time with or without notice to you. c. provision of information and education to facilitate sound choice and
7. Indemnity the proper exercise of rights by the consumer;
a. You agree to release, defend, indemnify, and hold Airbnb harmless d. provision of adequate rights and means of redress; and
from all claims, suits, damages, costs and expenses, including e. involvement of consumer representatives in the formulation of social
attorneys fees, associated with your misuse of the BTR badge or and economic policies.
with any false or misleading statement, act or omission by you in 2. Article 48. Declaration of Policy. The State shall promote and encourage
relation to your Listings designation as a BTR Listing. fair, honest and equitable relations among parties in consumer transactions
8. Termination and protect the consumer against deceptive, unfair and unconscionable
a. Participation in the BTR Program is a privilege, not a right. sales acts or practices
b. Your Listings BTR status, privileges, and license to the BTR badge 3. Article 49. Implementing Agency. The Department of Trade and
may be revoked at our sole discretion if you violate these terms, Industry, hereby referred to as the Department, shall enforce the provisions
the Airbnb Terms of Service or any other Airbnb terms & conditions of this Chapter
applicable to you. 4. Article 50. Prohibition Against Deceptive Sales Acts or Practices. A
c. Your Listings BTR Program status, membership, privileges, and deceptive act or practice by a seller or supplier in connection with a
license to the BTR badge will be automatically suspended or consumer transaction violates this Act whether it occurs before, during or
terminated if: (a) you or your Listing no longer meet the after the transaction. An act or practice shall be deemed deceptive whenever
qualifications, (b) you stop hosting, or (c) your Listing or Airbnb the producer, manufacturer, supplier or seller, through concealment, false
account is suspended or cancelled, as the case may be. representation of fraudulent manipulation, induces a consumer to enter into a
9. Disclaimer sales or lease transaction of any consumer product or service.
a. the btr badge and any other materials, and any btr program benefits,
are provided hereunder "as is." Without limiting the scope of the above paragraph, the act or practice of a
b. airbnb disclaims all liabilities and warranties including but not limited seller or supplier is deceptive when it represents that:
to any warranties of merchantability, satisfactory quality, fitness for a (a) a consumer product or service has the sponsorship, approval,
particular purpose, quiet enjoyment or non- infringement. the btr performance, characteristics, ingredients, accessories, uses, or
badge or btr listing status is not in any way an endorsement by benefits it does not have;
airbnb of any host or listing. (b) a consumer product or service is of a particular standard, quality,
10. Limitation of liability grade, style, or model when in fact it is not;
a. airbnb will not be liable for any incidental, special, exemplary or (c) a consumer product is new, original or unused, when in fact, it is in a
consequential damages, including lost profits, loss of data or loss of deteriorated, altered, reconditioned, reclaimed or second-hand
goodwill, service interruption, computer or mobile device damage or state;
3
(d) a consumer product or service is available to the consumer for a (e) that the transaction that the seller or supplier induced the consumer
reason that is different from the fact; to enter into was excessively one-sided in favor of the seller or
(e) a consumer product or service has been supplied in accordance supplier.
with the previous representation when in fact it is not; Article 60. Penalties.
(f) a consumer product or service can be supplied in a quantity greater a) Any person who shall violate the provisions of Title III, Chapter I, shall
than the supplier intends; upon conviction, be subject to a fine of not less than Five Hundred
(g) a service, or repair of a consumer product is needed when in fact it Pesos (P500.00) but not more than Ten Thousand Pesos (P10,000.00)
is not; or imprisonment of not less than five (5) months but not more than one
(h) a specific price advantage of a consumer product exists when in fact (1) year or both, upon the discretion of the court.
it does not; b) In addition to the penalty provided for in paragraph (1), the court may
(i) the sales act or practice involves or does not involve a warranty, a grant an injunction restraining the conduct constituting the contravention
disclaimer of warranties, particular warranty terms or other rights, of the provisions of Articles 50 and 51 and/or actual damages and such
remedies or obligations if the indication is false; and other orders as it thinks fit to redress injury to the person caused by such
(j) the seller or supplier has a sponsorship, approval, or affiliation he conduct.
does not have.
5. Article 51. Deceptive Sales Act or Practices By Regulation. The REQUIREMENTS FOR HOMESTAY SITES
Department shall, after due notice and hearing, promulgate regulations Section 9. Minimum Requirements - For purposes of accreditation, the following
declaring as deceptive any sales act, practice or technique which is a are
misrepresentation of facts other than these enumerated in Article 50. the minimum requirements for the operation and maintenance of homestay sites
6. Article 52. Unfair or Unconscionable Sales Act or Practice. An unfair or in
unconscionable sales act or practice by a seller or supplier in connection accordance with the Department's National Homestay Program:
with a consumer transaction violates this Chapter whether it occurs before, a. Homestay Sites
during or after the consumer transaction. 1. There is prevailing peace and order situation in the area.
2. There are existing natural and man-made attractions in the community.
An act or practice shall be deemed unfair or unconscionable whenever the 3. Site is easily accessible to tourists and with existing transportation
producer, manufacturer, distributor, supplier or seller, by taking advantage of services, good road condition and other basic community infrastructures.
the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time 4. The host community is willing to join the National Homestay Program.
or the general conditions of the environment or surroundings, induces the 5. There is a dearth of commercial accommodation facilities in the area to
consumer to enter into a sales or lease transaction grossly inimical to the service tourists.
interests of the consumer or grossly one-sided in favor of the producer, b. Home Facilities
manufacturer, distributor, supplier or seller. 1. Structures are of durable building materials and are in good, presentable
condition.
In determining whether an act or practice is unfair and unconscionable, the 2. The surroundings are pleasant and healthful.
following circumstances shall be considered: 3. There shall be at least one (1) adequately furnished guestroom to
(a) that the producer, manufacturer, distributor, supplier or seller took accommodate paying visitors.
advantage of the inability of the consumer to reasonably protect his 4. The following shall be available:
interest because of his inability to understand the language of an
agreement, or similar factors; - extra bed/s
(b) that when the consumer transaction was entered into, the price - adequate lighting system
grossly exceeded the price at which similar products or services - running water or if not available, adequate supply of water
were readily obtainable in similar transaction by like consumers; - clean and well-maintained toilet and bathroom facilities
(c) that when the consumer transaction was entered into, the consumer - meals at reasonable rates
was unable to receive a substantial benefit from the subject of the - electric fan or other means of ventilation
transaction;
(d) that when the consumer was entered into, the seller or supplier was c. Training - Family members shall have completed the Department's training
aware that there was no reasonable probability or payment of the workshop on Homestay Program.
obligation in full by the consumer; and
LEASE CONTRACTS
4
ARTICLE 1643. In the lease of things, one of the parties binds himself to give to ARTICLE 562. Usufruct gives a right to enjoy the property of another with the
another the enjoyment or use of a thing for a price certain, and for a period which obligation of preserving its form and substance, unless the title constituting it or
may be definite or indefinite. However, no lease for more than ninety-nine years the law otherwise provides.
shall be valid.
BUILDER-PLANTER SOWER [INSERT RULES]
DEPOSIT CONTRACTS
ARTICLE 1962. A deposit is constituted from the moment a person receives POSSESSION
a thing belonging to another, with the obligation of safely keeping it and of ARTICLE 523. Possession is the holding of a thing or the enjoyment of a right.
returning the same. If the safekeeping of the thing delivered is not the
principal purpose of the contract, there is no deposit but some other contract. CUENTAS EN PARTICIPATION (CHECK CLV OUTLINE)
ARTICLE 1998. The deposit of effects made by travellers in hotels or inns ARTICLE 239 (Code of Commerce). Merchants may have an interest in the
shall also be regarded as necessary. The keepers of hotels or inns shall be transactions of other merchants, contributing thereto the amount of capital they
responsible for them as depositaries, provided that notice was given to them, may agree upon, and participating in the favorable or unfavorable results of said
or to their employees, of the effects brought by the guests and that, on the transactions in the proportion, which they may fix.
part of the latter, they take the precautions which said hotel-keepers or their
substitutes advised relative to the care and vigilance of their effects. ARTICLE 239. Merchants may have an interest in the transactions of other
ARTICLE 1999. The hotel-keeper is liable for the vehicles, animals and merchants, contributing thereto the amount of capital they may agree upon, and
articles which have been introduced or placed in the annexes of the hotel. participating in the favorable or unfavorable results of said transactions in the
ARTICLE 2000. The responsibility referred to in the two preceding articles proportion which they may fix.
shall include the loss of, or injury to the personal property of the guests
caused by the servants or employees of the keepers of hotels or inns as well ARTICLE 240. Joint accounts shall not be subject, with regard to their formation,
as by strangers; but not that which may proceed from any force majeure. to any formality, and may be privately contracted orally or in writing, and their
The fact that travellers are constrained to rely on the vigilance of the keeper existence may be proved by any of the means accepted in law, in accordance
of the hotel or inn shall be considered in determining the degree of care with the provisions of Article 51.
required of him. ARTICLE 241. In the transactions treated of in the two foregoing articles, no
ARTICLE 2001. The act of a thief or robber, who has entered the hotel is not commercial name common to all participants can be adopted, nor can any further
deemed force majeure, unless it is done with the use of arms or through an direct credit be made use of except that of the merchant who transacts and
irresistible force. manages the business in his own name and under his individual liability.
ARTICLE 2002. The hotel-keeper is not liable for compensation if the loss is
due to the acts of the guest, his family, servants or visitors, or if the loss ARTICLE 242. Persons transacting business with the merchant carrying on the
arises from the character of the things brought into the hotel. joint business shall only have a right of action against the latter and not against
ARTICLE 2003. The hotel-keeper cannot free himself from responsibility by the other persons interested, and the latter, on the other hand, shall have no right
posting notices to the effect that he is not liable for the articles brought by the of action against the third person who made the transaction with the manager
guest. Any stipulation between the hotel-keeper and the guest whereby the unless said manager formally cedes his rights to them.
responsibility of the former as set forth in articles 1998 to 2001 is suppressed
or diminished shall be void. (n) ARTICLE 243. The liquidation shall be effected by the manager, and after the
transactions have been concluded he shall render a proper account of its results.
ARTICLE 2004. The hotel-keeper has a right to retain the things brought into
the hotel by the guest, as a security for credits on account of lodging, and
FOREIGN CASES
supplies usually furnished to hotel guests. (n)
1. FREQUENCY-BASED TEST
COMMODATUM
2. NATURE OF USE TEST
ARTICLE 1935. The bailee in commodatum acquires the use of the thing loaned
but not its fruits; if any compensation is to be paid by him who acquires the use,
the contract ceases to be a commodatum.

USUFRUCT

5
listing for any reason, it will most likely happen after the
FREQUENTLY ASKED QUESTIONS [GOOD LUCK SELF] rights of one of the parties were violated
b. Property owner rights: Lessor or Hotelkeeper?
LEGAL ISSUE i. It is necessary to determine their business to know
extent of proper exercise of the property owners rights
What is your legal issue? ii. Lessors rights to sublease
1. Accommodation-sharing transactions, the legal relationships and the c. Third Parties Rights
liabilities of the parties are not contemplated under existing legal frameworks i. If these transactions have impact on third parties, we
in the Philippines. Hence, it is imperative to create a legal framework that cannot rely on contractual relationships and stipulations
would settle the place of accommodation-sharing under our legal system and of the parties to the transactions
define the rights and obligations of the parties. ii. Accommodation-sharing transactions affect
2. Whether or not the legal relationships, liabilities of hosts and online platforms neighborhoods, etc.
and remedies of guests under accommodation-sharing, are governed by iii. This might also limit the rights of the property owners
provisions on lease, hotelkeepers liability under the Civil Code and other 2. Some stipulations under the Terms and Conditions of Service of the online
relevant laws. platforms are against public policy, thus void.
3. Given the legal ambiguities as to the relationships, rights and liabilities of a. The contracting parties may establish such stipulations, clauses,
parties arising from accommodation-sharing transactions, it is imperative to terms and conditions as they may deem convenient, provided they
settle the place of accommodation-sharing in our legal system, but since are not contrary to law, morals, good customs, public order, or
existing legal frameworks in Philippines do not squarely govern public policy (Article 1306, CC)
accommodation-sharing, a legal framework governing accommodation- 3. The Tourism Act of 2009 mandates that there be a prior Department of
sharing shall be enacted. My submission is based on the following grounds: Tourism accreditation for "primary tourism enterprises, which includes
a. First, online platforms are not engaged in a pure rental nor hotel accommodation establishments. Accommodation establishments include
business; hotels, motels, resorts, homestay operations, among others. Since
b. Second, the hosts are also not ordinary lessors, as contemplated accommodation-sharing hosts are providing alternative accommodation
under the Civil Code; services to consumer guests using their own homes and vacation properties,
c. Third, the legal relationship between online platforms and hosts is it can be argued that these properties are part of primary tourism enterprises,
neither agency, employment, partnership and joint venture; which is subject to compulsory accreditation by the DOT.
d. Fourth, online platforms cannot always be held liable for the willful a. Department of Tourism Memo. Circ. No. 2012-02
and negligent acts, or omissions of hosts; b. Fire Code; Environmental Code; Accessibility Law
e. Fifth, the lack of defined rights and remedies of the consumer c. IRR of Sanitation Code issued by DOH
guests is a violation of the Consumer Act and of the Constitution, d. The Tourism-Related Establishment Code provides for the
which mandates the State to protect consumers from trade guidelines in regulating homestay operators
malpractices. e. Insurance requirement
f. ensure handicap accessibility and prevent discrimination
What is the legal basis for regulating the accommodation-sharing 4. The case of Makati Shangri-La v. Harper and De Los Santos v. Tan Khey
transactions? ruled that hotel business and accommodation establishments are likened to
A. LEGAL ARGUMENTS the business of common carriers imbued with public interest. Thus, these
1. Rights of Accommodation-sharing Parties and Third Parties operators are bound to provide security and safety to their customers or
a. Consumer Guests Rights: Tenant or Hotel Guest: consumers.
i. The lack of defined rights and remedies of consumer 5. Both rental and hotel business require licensing.
guests is a violation of the Constitutional mandate to a. Especially when it comes to tourism, licenses ensure that a host can
protect consumers from trade malpractices and the provide a space, which conforms to some minimal standards. In
Consumer Acts objective to provide defined means of most cases that means hygienic requirements and fire safety. Some
redress. locations might have additional requirements related to nature
ii. (Consumer Act) forces.
iii. (Sec. 9, Art. XVI, Constitution) b. In Lithuania, a person which is willing to rent his property, he shall
iv. While company reserves the right, at any time and obtain a certificate of individual activities. If a person offers rental
without prior notice, to remove or disable access to any services which can be considered as tourism services (i.e.
6
accommodation and breakfast), he shall also notify the State f. eviction of lessees/guests
Department of Tourism and comply with hygienic requirements. g. other negative externalities
6. Since local government units impose taxes to tourism establishments, then it h. these online platforms have electronic records of the hosts and
is imperative to settle the nature of accommodation-sharing operators, to guests activities
determine whether they shall likewise be subject to occupancy or rental
income taxes. What rights are violated if accommodation-sharing is left unregulated?
a. The company facilitates renting, but does not assume any 1. Consumer Rights, Property Owners and Third Parties
responsibility to ensure that income tax (or any other taxes) are paid 2. Incumbent players in traditional and regulated industries that the sharing
to the state budget. In a way, Airbnb helps to create a black market economy players disrupt
of renting, because it is extremely hard to monitor the activity of
hosts. ANALYSIS
7. Assuming arguendo that these are innominate contracts, but the Civil Code GENERAL
provides that innominate contracts shall be regulated by the stipulations of
the parties, by the provisions of Titles I and II of this Book, by the rules What countries are permissive/accommodating?
governing the most analogous nominate contracts, and by the customs of United States
the place. (Art. 1307, CC). Thus there is a need to settle which most o Arizona
analogous contracts apply to these arrangements, and which provisions may passed a law in January 2017, prohibiting local
apply suppletorily. governments from banning short-term rentals facilitated
8. Terms and Conditions of Service of online platforms by online accommodation-sharing platforms. 1 The
a. The platforms provide that they may always alter such terms states Department of Revenue also partnered with
anytime, in favor of them, w/ notification to the users. Airbnb in streamlining of tax payments of hosts to the
b. Some provisions of the Terms are ambiguous, therefore the courts state.2
still has to rule upon the interpretation of maximum extent permitted o New Jersey
by law in the Philippine context. has legalized accommodation-sharing but only allows
i. Statutory construction provides that the ambiguous residents to rent a maximum of five units for less than
provisions on contracts of adhesion shall be construed 30 days a year.3
against the one who caused the ambiguity. o San Francisco
in an ordinance, also forbade hosts who have not
B. PRACTICAL ARGUMENTS properly registered their homes to engage in
1. The self-regulation mechanisms of these online platforms are not sufficient accommodation-sharing transaction4
to give the consumers remedy. This ordinance sparked a lawsuit filed by Airbnb, but
2. They cannot be reached, or they refuse to participate or assist recently in May 2017, the parties came up with a
3. Review mechanisms may not accurately reflect the necessary regulatory compromise, where Airbnb committed in helping
concerns
1. Consumers/Hosts might fear retaliation outside the platform, since
they know each others personal information already
1
2. Consumer observations and past experiences may not always John Kartch, Gov. Doug Ducey Aims To Make Arizona The Sharing Economy
reflect the problems, risks or perils that they cannot see. State, available at https://www.forbes.com/sites/johnkartch/2016/01/12/gov-doug-
i. heating system, carbon monoxide poisoning, facilities ducey-aims-to-make-arizona-the-sharing-economy-state/#3e1f662d3894 (last
ii. fire exits, cooking systems accessed July 20, 2017).
3. These are the things that hosts and guests cannot properly assess 2
Id.
and prevent on their own. 3
Office of Jersey City, Mayor Fulop Leads on Sharing Economy, Jersey City to be
4. deadbolt on each door requirement to prevent intruders First in the Tri-State Area to Officially Allow Airbnb, October 12, 2015, available at
4. Not all offer insurance; Airbnb insurance is not yet provided in Philippines http://www.cityofjerseycity.com/uploadedFiles/Public_Notices/Press_Releases/10-
c. to know the level of diligence required of hosts in their delivery of 12- 15%207am%20Airbnb%20RELEASE%20.pdf (last accessed July 20, 2017).
accommodation-sharing services
d. zoning laws are being violated 4
City & County of San Francisco, San Francisco Ordinance No. 218-14, available at
e. condominium and homeowners associations rules are being violated
http://www.sf-planning.org/index.aspx?page=4004 (last accessed July 20, 2017).
7
authorities enforce its short-term rental laws. 5 Airbnb unlicensed hoteliers, since many hosts offer multiple
will create a new registration system requiring hosts properties for short-term rentals through these platforms.8
information, which will be turned over to the city 37% of Airbnbs revenue in 2014 belongs only to 6% of
officials. 6 Invalid registration of hosts will also hosts in the city.
deactivate their listings.7 In effect, Airbnb seems to be advertising the unlicensed
Europe lodging businesses of these hosts. Hence, several strict
o United Kingdom regulatory measures to curtail accommodation-sharing
United Kingdom granted a 1,000 tax-free sharing have been adopted.
economy allowance to hosts starting April 2017 As early as 2010, the New York Multiple Dwelling Law was
o Greece already enacted, prohibiting short-term rentals of less than
licensing laws for renting out private homes were 30 days in Class A buildings, i.e. with three or more units,
already abolished, hence making it easier for unless the owner is present during the rental period. 9
inhabitants to rent out their rooms or homes Violation of this law would cost the hosts penalties ranging
o Amsterdam from $US 1,000 to $US 7,500, depending on the number of
the first European city to expressly authorize the violations.
operations of Airbnb and other accommodation-sharing authorities announced that they would not penalize the
transactions under certain conditions accommodation-sharing companies for illegal listings of
city permitted the lease of houses for a maximum of hosts on their platforms
two months per year, and required hosts to be legal July 2017: The bill will require hosts who list apartments or
residents in these homes, though temporarily absent. buildings with multiple units to disclose their exact location
In 2015, Amsterdam partnered with Airbnb regarding details to make it easier for authorities to determine illegal
the collection of taxes, information, and prevention of hotel operation
public nuisance Europe
o France o Barcelona, Spain
enacted a law that allows hosts to rent out their adopted a prohibitive approach in dealing with
principal residence up to four months without accommodation-sharing, its main concerns being the mass
requirements and imposes income taxes, but since arrival of tourists and the long-term impact on cost of
October 2015, Airbnb has been conducting housing
investigations and raids to prevent large-scale Barcelona imposed $636,000 fines to both Airbnb and
accommodation-sharing that amounts to operating de HomeAway for allowing hosts to rent out properties without
facto but unlicensed hotels tourist license.
o Ireland April 2017: Airbnb separates professional landlords from
where a Welcome Standard was introduced to regular hosts, by limiting the number of home rental listings
provide parameters for alternative accommodation to one property in central Barcelona, unless the host is a
providers. professional landlord, i.e. more than one property, wherein
he is required to provide his business information on his
What countries are restrictive? website
United States o Berlin, Germany
o New York law prohibiting the use of a residential property for purposes
believes that online accommodation-sharing platforms, other than residence.
particularly Airbnb, are responsible for the proliferation of allows subletting less than fifty percent of the entire home,
thus outlawing subletting of entire homes or apartments,

5
Heather Somerville & Dan Levine, Airbnb, San Francisco settle lawsuit over short-
8
term rental law, available at http://www.reuters.com/article/us-airbnb-sanfrancisco- James Dobbins, How to Host on Airbnb Legally, N.Y. TIMES, Apr. 7, 2017,
settlement-idUSKBN17X254 (last accessed July 20, 2017). available at https://www.nytimes.com/2017/04/07/realestate/how-to-host-on-airbnb-
6
Id. legally.html (last accessed July 20, 2017).
7 9
Id. Multiple Dwelling Law, New York State, United States, 4, 8.
8
without prior approval from local governments starting May guests that the host would provide a safe and secure place for them,
2016. consistent with what was posted on the online platforms.
The online platforms may be obliged disclose information 2. But to determine the liability of the hosts and the diligence required of them
about the hosts to authorities. shall also depend on the circumstances of time, place and person.
o Munich, Germany 3. At common law, innkeepers are strictly liable for injury to guests and have a
issued a by-law similar to that of Berlin, prohibiting duty to accommodate, a duty to render courteous treatment, a duty to
commercial usage of homes, but allows occasional provide safe accommodations and a duty to protect guests from others.
subletting of rooms and spaces to visitors. a. stems from the special relationship between an innkeeper and guest
o Hamburg, Germany b. Second Restatement of Torts equates innkeepers with common
amended housing law in 2013 permits hosts to rent out carriers, which imposes on them a collection of duties to protect
guests.
DUTIES OF ONLINE PLATFORMS

Is it a hotel business?
1. No, because they are not offering accommodation services, and they are What liabilities are you imposing to the hosts?
incapable of providing security and safety in the premises of all the hosts; all 1. Duty to Provide basic and adequate security, consistent with what was
they have is general guidelines and claims. But they have no physical means posted online and considering the circumstances of place
of doing so. 2. Duty to
2. Online platforms do not manage/operate the accommodation services of all
hosts. Is there a presumption of negligence on the part of the online platforms
upon the hosts negligent acts causing injury or damage to another?
Is it a travel agency/broker?
1. No it is not because it involves more than mere booking; What is intermediary liability?
2. It is under the supervision of the online platform, in such a way that the legal liability imposed to Internet intermediaries for the content or activities of
online platforms can intervene if an issue arises between the host and the third parties
guest. Airbnb for instance has a dispute resolution mechanism. It can decide What are Internet Intermediaries?
and overrule the decision of a host/guest. they bring together or facilitate transactions between third parties on the Internet.
3. Before, during and after the transaction, the online platforms have They give access to, host, transmit and index content, products and services
participation, as opposed to mere brokers or middlemen. originated by third parties on the Internet or provide Internet-based services to
4. These online platforms sometimes offer insurance coverages, which is not third parties.
happening in travel agencies. They only care to book you. What is the scope of Internet intermediaries?
5. Airbnb for instance gives out free fire detectors It includes the following: (1) Internet access and service providers (ISPs); (2)
6. They seem to feel that they are responsible if their hosts are violating the Data processing and web hosting providers, including domain name registrars;
local laws, since they always remind their hosts to know the laws of their (3) Internet search engines and portals; (4) E-commerce intermediaries, where
place; they remind time to get insurance. these platforms do not take title to the goods being sold; (5) Internet payment
7. Verification, Background checks, 90% response Rate in 24 hours systems; and (6) Participative networking platforms, which include Internet
8. Smoke-free and pet-free publishing and broadcasting platforms that do not themselves create or own the
content being published or broadcast.10
DUTIES OF HOST What are the models of Intermediary Liability?
Strict (Blanket) Liability , Conditional (Safe Harbor) Liability, Broad Immunity
Does the provision on necessary deposit applicable to hotel and What is the Digital Millennium Copyright Act (US)?
innkeepers and common carriers also apply to accommodation-sharing limits the intermediarys liability for infringing content posted on its website upon
hosts? Under what circumstances? meeting certain conditions: no knowledge/awareness, benefit, responds quickly
1. These provisions may analogously apply to accommodation-sharing hosts, upon notice
since these hosts are marketing themselves as safe and secure What is the Communications Decency Act?
accommodation service provider, alternative to what the hotel and
innkeepers offer. There is a certain expectation on the part of the consumer
10
Id.
9
- Section 230: no provider or user of an interactive computer service shall be 1. No, the Real Estate Service Act does not contemplate juridical entities
treated as the publisher or speaker of any information provided by another 2. Online platforms are more involved in the transactions. They want to be a
information content provider. hotel/travel business, without being held liable.
- intermediary is insulated from liability for the acts and posts of its users, so long 3. Online platforms set the tone, the rules, the branding, as opposed to
as the platform is not an information content provider,11 or any person or entity brokerage arrangements, where the property owner is the principal.
that is responsible, in whole or in part, for the creation or development of
information provided through the Internet or any other interactive computer Is it a cuentas en participation?
service.12 The law also protects intermediaries from liability when they remove No delectus personae. No mutual agency.
content based on private company policy.13
What is the European Union Electronic Commerce Directive? Have you used doctrines in Torts to determine the liability of online
- instructive in providing a legal framework for the imposition of intermediary platforms?
liability to website providers 1. No, because there are no employment or agency relationship between the
- it prohibits member States from imposing general obligations on providers to hosts and the online platforms, thus the tort principles on vicarious liability or
monitor the hosted content for potential illegal activities, 14 but it also protects respondeat superior would not apply.
intermediaries from being liable for hosted content upon showing that: (1) the
intermediary does not have actual knowledge of the illegal activity or information; RECOMMENDATION/PRACTICALITY
or (2) the intermediary, upon being informed, acts expeditiously to remove or
disable access to such content. GENERAL
Is the intermediary liability regime implemented in Philippines?
- Electronic Commerce Act How do you implement your recommendation?
- Cybercrime Prevention Act of 2012 1. Two-layered approach
- Anti-Child Pornography Act of 2009
- Section 216 of the Intellectual Property Code DUTIES AND LIABILITIES OF HOSTS
There is either knowledge, benefit and notification. Notice-and-takedown
Procedure Isnt it impractical to require these hosts to obtain prior accreditation
before operating and before obtaining licensing from their LGUs?
1. Although the law may seem to add burden to small players under
ONLINE PLATFORM-HOST RELATIONSHIP accommodation-sharing industry, but the Tourism Act of 2009 requires
primary tourism enterprises, including accommodation establishments, to
Is it an agency transaction? obtain DOT accreditation, before being able to obtain their LGU license and
No. There is no fiduciary relationship; no representation. operate as such.
2. The government may initially subsidize some of the DOT accreditation and
Why is it not an online travel agency? LGU licensing fees, such as what it does in Homestay Operators in local
1. No agency relationship between host and guest, except to the extent that the communities.
online platforms collect payments of guests 3. The business of accommodation services is imbued with public interest,
therefore, they have the duty to provide basic and adequate security to the
Is it a brokerage contract? lives and property of the guests, depending on the circumstances of the
location, as determined by the Department of Tourism and their respective
LGUs.
11
Communications Decency Act, 230 (c)(1)
12
Communications Decency Act, 230 (f)(3) How would you know that these provisions are the ones that apply to an
13
Legal Information Institute. 47 U.S. Code 230 - Protection for private blocking accommodation-sharing, and not the ordinary rules on lease contracts
and screening of offensive material. Cornell University Law School. under the Civil Code?
www.law.cornell.edu/uscode/text/47/230 (Accessed 18 July 2014.) 1. The fact that they use the online platforms in entering into these kinds of
14
Directive 2000/31/EC of the European Parliament and of the Council of 8 June transactions means that they would be governed by the accommodation-
sharing law, because by using this you enter a new sphere of public and
2000 on certain legal aspects of information society services, in particular electronic
more commercialized accommodation establishment business.
commerce, in the Internal Market, 2000 O.J. (L 178) [hereinafter Directive on
Electronic Commerce].
10
Why did you not impose short-term rental (number of days) policies? 1. Airbnb has stipulated in its Terms and Condition that they can be sued
1. This is a matter that local government units have discretion on. before the courts of the resident of the consumer/user of the platform.
2. These policies are more for purposes of addressing housing shortages and 2. Airbnb and all the other platforms are also doing business in Philippines,
pricing in cities, but currently in Philippines, there are no findings yet that therefore these platforms may be sued, although they cannot in return be
accommodation-sharing transactions directly affect housing supply and sued.
costs. 3. Foreign Investments Act
The praise "doing business" shall include:
Can a national government order LGU? a. soliciting orders, service contracts, opening offices, whether called
Yes, Devolution to local-government vs. Local autonomy "liaison" offices or branches;
b. appointing representatives or distributors domiciled in the
Is the guest a possessor-in-good faith? Philippines or who in any calendar year stay in the country for a
No. If he does not claim ownership, he cannot be a possessor-in-good faith with period or periods totalling one hundred eighty (180) days or more;
that respect. c. participating in the management, supervision or control of any
LIABILITY OF ONLINE PLATFORMS domestic business, firm, entity or corporation in the Philippines; and
d. any other act or acts that imply a continuity of commercial
What is the purpose of classifying/distinguishing active platforms from dealings or arrangements, and contemplate to that extent the
passive platforms? performance of acts or works, or the exercise of some of the
1. Not all online platforms are conducting accreditation or branding to the functions normally incident to, and in progressive prosecution
content of the hosts. of, commercial gain or of the purpose and object of the
2. Some just indiscriminately accept anyone as hosts business organization:
3. Some puts profile badges based on the accreditation of the online platforms: e. Provided, however, That the phrase "doing business: shall not be
(1) business ready; (2) superhost deemed to include mere investment as a shareholder by a foreign
4. Some platforms also have the choice which kind of guests to retain entity in domestic corporations duly registered to do business,
and/or the exercise of rights as such investor; nor having a nominee
What liabilities are you imposing to the online platforms? director or officer to represent its interests in such corporation; nor
1. Intermediary liability for allowing unlicensed hosts from operating without appointing a representative or distributor domiciled in the Philippines
prior DOT accreditation or LGU license. which transacts business in its own name and for its own account;
2. Own negligence for accrediting unfit or unsuitable hosts 4. FIA IRR
The following acts shall not be deemed doing business in the Philippines:
Isnt it that intermediary liability would impose too much burden on the (1) Mere investment as a shareholder by a foreign entity in domestic
online platforms and stifle their freedom of speech? corporations duly registered to do business, and/or the exercise of rights
1. No, it is the emerging means to hold online companies. as such investor;
2. But, to ensure that freedom of speech is not stifled, then due process (2) Having a nominee director or officer to represent its interests in such
considerations must likewise be implemented. Such as notifying the online corporation;
platform, giving it a chance to explain itself or remove the illegal content. (3) Appointing a representative or distributor domiciled in the Philippines
which transacts business in the representatives or distributors own
What is the mechanism of intermediary liability of online platforms? name and account;
1. Online platforms have to ensure that DOT accreditation and LGU licensing is (4) The publication of a general advertisement through any print or
filled up by hosts prior to confirming their accounts, profiles, registration on broadcast media;
such platforms. (5) Maintaining a stock of goods in the Philippines solely for the purpose of
2. Online platforms may confirm such registration by looking into the online list having the same processed by another entity in the Philippines;
of DOT accredited and LGU licensed hosts, published by the DOT. (6) Consignment by a foreign entity of equipment with a local company to be
3. Online platforms are capable of doing this, since they are able to remove used in the processing of products for export;
content based on grounds provided in their Content policies. (7) Collecting information in the Philippines; and
(8) Performing services auxiliary to an existing isolated contract of sale
How do you acquire jurisdiction over these online platforms if they are which are not on a continuing basis, such as installing in the Philippines
sued? machinery it has manufactured or exported to the Philippines, servicing

11
the same, training domestic workers to operate it, and similar incidental
services.

5. Section 12 of Rule 14 of the Rules of Court provides the means to acquire


jurisdiction over foreign juridical entities, which are not registered and do not
have a resident agent in Philippines.
a. SEC. 12. Service upon foreign private juridical entity.
When the defendant is a foreign private juridical entity which has
transacted business in the Philippines, service may be made on its
resident agent designated in accordance with law for that purpose,
or, if there be no such agent, on the government official designated
by law to that effect, or on any of its officers or agents within the
Philippines.
b. If the foreign private juridical entity is not registered in the
Philippines or has no resident agent, service may, with leave of
court, be effected out of the Philippines through any of the following
means:
i. By personal service coursed through the appropriate court
in the foreign country with the assistance of the Department
of Foreign Affairs;
ii. By publication once in a newspaper of general circulation in
the country where the defendant may be found and by
serving a copy of the summons and the court order by-
registered mail at the last known address of the defendant;
iii. By facsimile or any recognized electronic means that could
generate proof of service; or
iv. By such other means as the court may in its discretion
direct.
c. This rule shall take effect fifteen (15) days after publication in a
newspaper of general circulation in the Philippines.

How do you execute your judgment?


1. File a case here and assuming that Airbnb participates in the proceedings,
then file for the execution of the judgment abroad, pursuant to Rule 39 of the
Rules of Court.
2. Require the online platforms to register as a juridical entity in the Philippines,
i.e. a corporation, partnership, etc., wherein they would be required to file a
performance bond, which could be used for purposes of executing judgment
against the online platforms.
3. The Department of Information and Communications Technology can always
block the access to these online platforms in Philippines.

Can Airbnb invoke Forum non Conveniens?

12
or 40.4 million of the total 44 million tourists in Philippines in the first half of
CONTRACT LAW 2016.
RECOMMENDATION Therefore, we do not want to wait for the worst case that could happen in
A. First Layer of Regulation these unregulated businesses. Pursuant to the mandate of the Constitution
- DOT Accreditation of hosts: DOT is authorized to formulate minimum standards and the Consumer Act to protect the interest of consumers, it is imperative to
for accreditation of tourism facilities and services; similar with the DOT National settle this legal question and enlighten the stakeholders of their rights and
Homestay Program remedies against those who ought to be held liable.
- DOT Accreditation for primary tourism enterprises (accommodation
establishments) is required for the LGUs issuance of the license to operate the Questions:
accommodation establishments What is your legal basis for regulating the accommodation-sharing
- LGU Registration of properties used for accommodation-sharing industry?
o
B. Second Layer of Regulation o Necessary Deposits provision under the Civil Code
- Intermediary liability of online accommodation-sharing platforms Article 1998. The deposit of effects made by travellers in
hotels or inns shall also be regarded as necessary. The
What liabilities are you imposing to the hosts? keepers of hotels or inns shall be responsible for them as
Is there a presumption of negligence on the part of the online platforms depositaries, provided that notice was given to them, or to
upon the hosts negligent acts causing injury or damage to another? their employees, of the effects brought by the guests and
Similar to hotels or ordinary lease? that, on the part of the latter, they take the precautions
What are the remedies of the guests? which said hotel-keepers or their substitutes advised
- claim from the hosts relative to the care and vigilance of their effects.
- claim from the online platform by independently proving the negligence of the
online platform in accrediting the hosts Article 2003. The hotel-keeper cannot free himself from
What are the remedies of third persons affected? responsibility by posting notices to the effect that he is not
Why did you not prohibit short-term rentals? liable for the articles brought by the guest. Any stipulation
Why did you not place a minimum period to be considered as a short-term between the hotel-keeper and the guest whereby the
rental to distinguish it from an ordinary lease contract? responsibility of the former as set forth in articles 1998 to
EXECUTION 2001 is suppressed or diminished shall be void.
Philippine Homestay Programs o National Accommodation Standards, IRR issued by the Department
FlipFlop Tours of Tourism
Beyond the scope of my thesis since these only cover small o Taxation provisions are violated
communities or families that do not have access to the internet
How will you enforce since they do not have presence in Philippines? Why dont you just leave the transaction among the parties?
Airbnb waived their jurisdiction, they can be impleaded in the country of o Zoning regulations are violated
the complainants residence o Taxation laws
Contracting with Airbnb Ireland, HomeAway in Singapore o This violates the hotel liability on

Addressing this legal problem in the Philippine context is necessary, given


that the Philippines is a promising market for the accommodation-sharing Notes:
industry and one of the fastest growing markets of Airbnb in Asia, according 1. Reduce History
to its Southeast Asia and India Managing Director. From 2014 to 2015 alone, a. Go to definition and problem
the growth of Airbnb listings in the country was 300%. As of September b. Recent trend is happening
2017, there are 5,250 hosts and around 12,800 listings in Manila, alone, c. Do not include registration process
under the Airbnb platform. 2. Definition
Investors are buying condo units, particularly in Manila, Boracay and 3. Why is it unfair that Airbnb
Tagaytay, just to cater to this accommodation-sharing market. Furthermore, 4. Agency
Department of Tourism data shows that domestic travelers account for 92% 5. Whether or not under existing laws in Philippines govern the liabilities of
accommodation-sharing platforms.
13
a. Whether or not the existing laws in Philippines can address the - ordinary lease and hotel business
dangers - both lease and hotel are required to have a license
i. What if like te 11. Legal Issue
b. Whether or not the relationship accommodation-sharing - do not say there are no laws that govern
economy are presently, - say that you are violating these laws
6. Frame it in a way violation? - it is more of advocacy
a. Is there something provokes you to draw weapon? - read on violations
i. Accommodation-sharing -
7. How to obtain jurisdiction
a. if they do not follow, then block the webs ESTABLISH LEGAL ISSUE:
8. Is there a separate host and ANALYSIS
9. Is there RECOMMENDATION
a. the contract is between the law THANK YOU
i. agency Civil Code Commission
10. Host and Guest Review Concepts of Civil Code
11. What is the practicality of regulating everyone? Senate deliberations on Civil Code
a. safety Code of Commerce
12. 2 pages for mock defense US Cases on Airbnb
13. Legal possession Substantial Distinction between hotels and lessors
a. what else can distinguish accommodation-sharing
14. Superhosts v. Private Individuals
15. Agency
16. Employment
17. Partnership
18. Co-venture
19. Necessary Deposit may not apply on accommodation-sharing
20. Contractual Argument
21. Why do you have to
22. Airbnb how Broker
23. How to distinguish

1. Presentation of arguments
2. Statistics
- show it is a emerging market, how much reserve
- Philippines
3. Whether or not violation siya
- Consumer Act
4. What is the legal harm that is being addressed by the lack of regulation?
- lack of remedies
- Consumer Act
5. Who gets liable for the crimes, injuries, damages
6. Isnt it enough for crimes that the guests sue the host for such specific acts
7. Vicarious liability
- you have the house to pay for the damages to guests
8. Lack of remedies
9. Liability of online platforms
10. Hybrid business
14

Potrebbero piacerti anche