Airbnb sues San Francisco over new short-term rentals rules

Airbnb described the action as an unprecedented step for the company, but said it believes “it’s the best way to protect our community of hosts and guests”.

It is not just in San Francisco that Airbnb faces opposition.

The company is now valued at more than $25 billion and operates in virtually every city in the world. Yet, it’s struggled to work with two of the first markets that it entered, NY and San Francisco. “The new law doubles down on a broken system by threatening websites that don’t remove home sharers who can’t navigate a confusing, inefficient, and bureaucratic process that often takes months to complete”. The problem with the city’s new registration requirement, the company said, is that it provides fines and penalties on Airbnb if the company does block rental listings by non-registered hosts, even though that would be illegal based on existing federal law. Residents of San Francisco have to register with the city authorities before they start to rent out their houses on any of the rental platform, which is too complicated according to Airbnb. Earlier in the month, San Francisco legislators passed the law as the city struggles to handle a housing crisis.

Rather than auto rental companies, Airbnb’s argument hinges on comparing itself to platforms hosting user-generated content like YouTube, Facebook, and Twitter.

San Francisco began requiring hosts to register and pay hotel taxes a year ago, but has struggled to enforce that requirement. “It’s simply a duty to verify information that’s already required for a regulated business activity”.

This is not for a lack of effort on Airbnb’s part, the company claims, referencing town hall meetings and the process of registration, and extensive efforts to encourage hosts to register with the city. “It also violates federal law”, Airbnb said on their blog.

“Nothing in San Francisco’s pending ordinance punishes hosting platforms for their users’ content”, Dorsey said.

Goossen compares it to vehicle rental companies who have to confirm that customers have a driver’s license. “That is exactly what we are asking the short-term platforms to do here”. Airbnb says the verification procedure requires it to disclose to the city the names and addresses of everyone who is advertising apartments.

In May, lawmakers in Berlin made it illegal to rent out entire homes or apartments in the German capital.

Airbnb is not about to take San Francisco’s strict new home-sharing rules lying down.

In addition, the Stored Communications Act prohibits the government from requiring communications and internet platforms to hand over user information without a subpoena, the lawsuit argues.