Los Angeles Sues Airbnb Over Price Hikes and Fake Listings During January Wildfires

Los Angeles City Attorney Hydee Feldstein Soto has filed a lawsuit against Airbnb in the LA Superior Court, accusing the platform of enabling price gouging on over 2,000 listings during January's wildfires.

The suit claims Airbnb allowed rental prices to increase by over 10 percent. California law prohibits essential service hikes above 10 percent after a declared state of emergency. The wildfire catastrophe, which began on January 7 and was extended multiple times, gave Airbnb legal obligations that the city says were ignored.

The lawsuit also claims Airbnb misled guests with “verified” badges, even when property hosts were fictitious or addresses were inaccurate.

So far, Airbnb denies wrongdoing and claims compliance.

The city seeks a permanent legal ban on illegal pricing, consumer refunds, and fines of up to $2,500 for each violation.

Cover photo by Oberon Copeland on Unsplash