LA City Lawsuit Against AirBnb Moves Forward
The complaint alleges Airbnb used Smart Pricing to raise rates on more than 2,600 properties during the wildfire emergency.
- On Tuesday, California Superior Court Judge Robert Broadbelt ruled that Airbnb must face a lawsuit from Los Angeles City Attorney Hydee Feldstein Soto, rejecting the company's request to dismiss the price-gouging case.
- Feldstein Soto alleges Airbnb's 'Smart Pricing' tool enabled rental prices to rise more than 10% on over 2,600 properties, violating state law enacted after Governor Gavin Newsom's emergency declaration during the January 2025 wildfires.
- While Airbnb argued that hosts set rental rates, Broadbelt wrote that the company's algorithm actually advertises and charges the prices, violating California's penal code and Los Angeles municipal code.
- An Airbnb spokesperson disputed the 'inaccurate allegations,' stating the company has contributed nearly $30 million to fire recovery, including a $16 million donation to Habitat for Humanity of Greater Los Angeles.
- The January 2025 firestorms in Pacific Palisades, Malibu, and Altadena killed at least 31 people and destroyed or damaged more than 16,000 structures across the region.
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Los Angeles City Attorney's Office said it maintains the lawsuit against Airbnb for price speculation during the January 2025 forest fires.
LA Daily News
Airbnb to face LA lawsuit alleging price gouging during 2025 fires
A state judge ruled Tuesday that the city's lawsuit over wildfire-related price gouging in 2025's wildfires can move forward.
Airbnb must face Los Angeles lawsuit alleging price gouging during 2025 wildfires
Airbnb must face a lawsuit by the city of Los Angeles, which accused the home rental company of price gouging during the January 2025 wildfires in southern California, City Attorney Hydee Feldstein Soto said on Tuesday. Judge Robert Broadbelt of the California Superior Court ruled that even if it is hosts who set prices, Los Angeles' allegations that Airbnb's advertising those prices and charging for rentals violated California's penal code …
Airbnb Ordered to Answer City's Wildfire Price-Gouging Claims
LOS ANGELES — Airbnb will have to defend itself in court against allegations it benefited from inflated rental prices during the housing crisis created by the Palisades and Eaton fires after a Los Angeles judge refused to dismiss the City's…
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