Home-rental providers Airbnb Inc. and HomeAway are suing New York City over a recently passed law that allows the collection of data on the websites’ hosts, claiming the ordinance violates users’ constitutional rights.
Airbnb is hoping to avoid millions in losses when the law, designed to police short-term home rentals, takes effect this winter. The New York City legislation, which passed with a 45-0 vote, would require Airbnb and similar sites to share the names and addresses of their hosts with the city’s Office of Special Enforcement. After Airbnb sued Friday morning, Expedia Inc.’s HomeAway filed a similar case, saying the new legislation violates privacy laws.
“The regulation illegally ends around established restrictions on government action and violates basic constitutional rights,” Airbnb said on Friday in a New York court case. Said.
Faced with an economic housing shortage, New York struggled with how to implement regulation to control Airbnb and other home rental services. Regulators argue that they are short-term leases that could be more profitable than long-term leases, destroy the neighborhoods, and increase rents. The new legislation is designed to provide enough information to the authorities to catch Airbnb hosts working outside strict house-sharing laws.
“This law city provides critical sacrifices that we need to protect our housing stock, to keep them safe, and to ensure that residents feel secure in their homes and in their neighborhoods,” said Christian Klossner, mayor’s executive director of private practice. . “The city will defend it.”
Some people close to the Airbnb said the new banknote was a devastating blow to the company. New York is one of Airbnb’s most popular markets, and the legislation can inspire other cities to get a harder line for short-term house rentals. But Airbnb says he will not hurt the company and that other cities do not have the same incentives to act because they do not have the same rules.
“The New York City Council is a wholly owned subsidiary of the hotel industry and is not interested in working together,” Airbnb’s global policy manager Chris Lehane said. Airbnb has successfully partnered with authorities in France, Australia, China and India.
In New York, Airbnb is struggling with regulators for almost a decade. In July the company financed a civil rights case against the city. A few days later, the city filed a lawsuit against the Airbnb to enforce compliance with an alleged investigation into an investigation into an illegal hotel.
Legal warning !
The information, comments and suggestions there are not covered by investment advice. It is based on the author's personal opinions. These views may not fit your financial situation and risk and return preferences. For this reason, based solely on this information, investment decisions may not have the appropriate consequences for your expectation. Our Site is not responsible for any direct or indirect damages incurred by the investors as a result of the use of the information on the Site, deficiencies in the sources, damages incurred by profit, moral damages, or damage to third parties.