Los Angeles Sues Airbnb Over Alleged Price Gouging During Wildfires
Los Angeles has filed a lawsuit against Airbnb, alleging that the company allowed price gouging during the January wildfires in Southern California. The city seeks an injunction to prevent such practices during emergencies and civil fines of up to $2,500 per violation.
The lawsuit comes amidst Airbnb's significant contributions to fire recovery efforts. The company, along with its CEO and a nonprofit affiliate, has donated nearly $30 million. This includes providing free emergency housing for nearly 24,000 people. However, the city alleges that at least 2,000 Airbnb properties increased rental prices by more than 10% during the wildfires.
Airbnb's 'smart pricing' tool, which adjusts rental prices based on demand, was disabled in Los Angeles and Ventura counties during the state of emergency. Despite this, the city accuses Airbnb of misrepresenting the existence of some 'verified' hosts and property locations on its website. The lawsuit also alleges that Airbnb violated California's anti-gouging law, which prohibits price increases of more than 10% for essential goods and services following a state of emergency.
The lawsuit against Airbnb highlights the ongoing issue of price gouging during emergencies. It seeks to hold the company accountable for its actions during the Southern California wildfires, which killed at least 30 people and destroyed or damaged more than 16,000 structures.
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