It turns out that while racism works the same way in the on-demand economy as it does everywhere else, accountability does not. As part of their user agreements, renters, drivers, and riders alike waive their right to public jury trials or to file class action suits against Airbnb, Uber, and Lyft.
On Tuesday, a federal judge ruled against Gregory Selden, a black man attempting to launch a class action suit against Airbnb for violating the Civil Rights Act of 1964. When Selden’s reservation request was rejected by a white host, he rebooked using fake profiles with the names “Todd” and “Jessie.” Both were accepted instantly.
But, following the ruling, he’ll have to plead his case in private arbitration, where relevant documents are sealed and the outcome won’t help other users facing the same problem. Despite a number of black Airbnb users alleging racism on the platform, many of whom have used the #AirbnbWhileBlack hashtag to share their stories, they’re prevented from merging together to form a broader class action suit because of the same clause.