Why buy a new car when I can use someone else’s? Why stay in a hotel when I can stay in someone’s holiday home? Why pay for a pool when I can use yours for a modest fee?
The sharing economy continues to grow in unexpected ways, but it is not without some serious legal risks...pointing to a need for better education of all involved.
If you are unfamiliar with the term, the ‘sharing economy’ refers to the rapidly expanding socio-economic system where members of the community make goods and services available to others by sharing them, typically for a fee and typically via an online platform.
Think of people sharing their car with others via Uber, or people sharing their homes with others via Airbnb, or people sharing their ability to undertake domestic tasks via Airtasker.
This is an increasingly popular way for property owners to maximise use of their assets while earning extra revenue, and for service providers to connect directly with the users of their services without going through potentially expensive intermediaries.
The fact that the use of sharing economy platforms is growing so rapidly indicates that this development is a welcome one.
But as the range of platforms proliferates and new and unanticipated forms of the sharing economy emerge, it isn’t all good news.
Sharing might be caring, but a news article caught my eye this week that got me thinking about the some of the legal risks associated with being a provider of these goods and services.
The article was about a woman in Sydney who has started renting out her home swimming pool to people by the hour.
A dip in her backyard pool will set you back $50 an hour, which might seem expensive compared to a trip to the beach but isn’t that bad given it entitles you to exclusive use of the pool without having to deal with summer crowds.
The woman in question has listed her pool on a swimming pool short term rental site, where she says she made $550 in one week.
Her pool sits proudly amongst plenty of other hidden gems including private oases with canal views and pools big enough for a large party.
There’s one in the Northern New South Wales hinterland that is described as surrounded by tall gums and visited by an array of native birds and is available for $1000 a day, perfect for a summer wedding.
Others are described in alluring ways such as: The emerald foliage encircles the pool, creating a natural oasis that evokes a resort-like ambiance or the trees sway gently, casting dappled shadows on the water’s surface, offering a cool respite from the sun.
You get the picture, and it isn’t limited to swimming pools.
The list of things you can share with others, in return for a fee, is growing ever longer, with cars, electric scooters and bikes popular items, along with driveway parking spaces in the big cities.
You can share your suburban backyard garden with people who live in hi-rise buildings to grow veggies, and your home office with people looking for a quiet place to work.
It is easier than ever to make a few extra dollars by letting other people use your stuff, but the lawyer in me sees all this and gets nervous.
It is now, in my view, far too easy to enter into a complex legal arrangement with others on the strength of a mouse click, a direct deposit and not much else.
Thinking about our pool lady, I wonder who would be responsible if someone were unfortunately to get hurt -- or God forbid even drown - in her backyard pool.
What if the teen from the next suburb using your shared scooter causes a serious motor vehicle accident or what if the lovely old guy growing his veggies in your back garden is actually growing something illegal?
There are consumer protection issues, including the usual risk of inadvertently engaging in misleading and deceptive conduct.
What if the trees fail to cast their dappled shadows on the water’s surface and the bride and groom who hired your pool decide that you have ruined their wedding?
There are tax issues and insurance issues. There are privacy concerns associated with some of the newer and smaller share economy platforms and their handling of personal information.
There is a lot to like about this new way of accessing goods and services, but while the ‘sharing economy’ waters are very tempting right now, I think we’re at a point where we need to do more to ensure those considering participating are made aware of the legal risks before they jump in the deep end.
A government led education campaign would be a good start.
Professor Nick James is the Executive Dean of the Faculty of Law at Bond University.