Airbnb Sued for Alleged Price Gouging During California Wildfires
Airbnb has faced criticism and legal action in Los Angeles following wildfires that affected thousands of properties. The company was accused of violating California's anti-gouging law, which limits price increases during emergencies.
At least 2,000 Airbnb properties in Los Angeles experienced price hikes of over 10% during the wildfires. This occurred despite Governor Gavin Newsom declaring a state of emergency on January 7, triggering the state's anti-gouging law that caps price increases for essential goods and services.
Airbnb's 'smart pricing' tool, which adjusts rental prices based on demand, was disabled in Los Angeles and Ventura counties during the wildfires. However, this did not prevent the significant price increases experienced by many properties. In response, Los Angeles sued Airbnb, alleging that the company allowed price gouging during the January wildfires in Southern California.
The legal action against Airbnb follows accusations of violating California's anti-gouging law. The company's 'smart pricing' tool was disabled during the emergency, but price increases persisted. The outcome of the lawsuit remains to be seen, with potential implications for Airbnb's operations in California.
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