The city of Los Angeles has filed a lawsuit against Airbnb, accusing the company of allowing illegal price increases in thousands of rental properties during forest fires in southern California in January.
This was revealed by the city lawyer Hydee Feldstein Soto on Friday.
The lawsuit, filed at the Superior Court of Los Angeles, states that rental prices increased more than 10% in “at least two thousand, and possibly more than three thousand” Airbnb listings between January 7 and 17.
The city officials said that these price increases occurred before AirbnB turned off their “smart prices” tool in Los Angeles and Ventura counties. The tool automatically adjusts prices according to demand.
The city argues that Airbnb violated California law against pricing, which prohibits increases of more than 10% in essential goods and services after an emergency state is declared.
Governor Gavin Newsom declared an emergency state in Los Angeles on January 7, which triggered the law. That statement has spread several times.
Also read: forest fires: the death toll rises to 24 as strong winds advance
Feldstein Soto acknowledged that Airbnb, which has about 80% of the local short -term rental market, has made efforts to prevent the increase in prices. But, he added, “the evidence indicates that it can continue.”
He also accused Airbnb of deceptive tenants by claiming on his website that “verified” the hosts and the locations of the property, some, he said, are not real.
Airbnb, in a statement, replied, saying that the company’s CEO, Brian Chesky, and the non -profit organization Airbnb have donated almost $ 30 million to the recovery efforts of forest fires, including providing emergency housing for almost 24,000 people.
The company also pointed out that Airbnb hosts receive an error message if they try to increase prices more than 10% above pre -emergency levels.
The lawsuit states that Airbnb violated the Unjusta Competence Law of California and sought a court order to stop illegal prices during emergencies and civil sanctions of up to $ 2,500 for violation.
Remember that forest fires in southern California caused the death of at least 30 people and caused damage or destruction to more than 16,000 buildings.
Tribune online He informs that the most serious destruction came from the Palisades fire in Pacific Palisades and the Eaton fire in Altadena. The fires burned an area larger than the city of Paris.
(Reuters)
Read too Main stories OF Nigerian tribe