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According to their CEO, "We're not classified as the brokers, we're just the service." [1]

I am not sure why they are expected to do dispute arbitration if they are 'just the service'. You don't expect craigslist to refund your money for a transaction that was enabled by craigslist.

1. http://www.nytimes.com/2011/07/25/technology/matching-travel...

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Because AirBnB charges sizable booking fees, people have an expectation that they will assist at some level if/when things go wrong. Furthermore, AirBnB themselves asserted that they have some responsibility. Remember when that apartment in SF got ransacked? Now they offer their $1 million insurance. Clearly, they are more than "just the service."

So I guess 'just a service' ruse is just avoid enforcing licensing/permits on their hosts.

Shady much?

exactly my thinking. If they do take deposit, they should take it on both sides, and have proper a arbiter. The guests bring their valuables too.

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