Jun. 30 at 11:54 PM
Airbnb is facing a lawsuit from the City of Los Angeles over alleged price gouging during the January 2025 Southern California wildfires, after a California judge ruled the case can proceed. The city alleges Airbnb violated California law and the Los Angeles municipal code by advertising and collecting rental prices that exceeded legal limits during the state of emergency, even though hosts set the listing prices.
The lawsuit, filed in July, claims rental prices at more than 2,600 properties increased by more than the 10% cap permitted under California's anti-price-gouging law, which was triggered by Governor Gavin Newsom's emergency declaration and later extended multiple times. City officials also challenged Airbnb's Smart Pricing tool, arguing the company played an active role in determining and displaying rental rates during the crisis.
$ABNB