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Airbnb files lawsuit against San Francisco over new rental rules

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By Rebecca Stewart, Trends Editor

June 28, 2016 | 3 min read

Travel startup Airbnb is to sue its hometown of San Francisco as it looks to avoid coughing up thousands of dollars in fines following the introduction of new short-term rental laws.

AIRBNB SUES SAN FRANCISCO

Airbnb is to sue its hometown to avoid thousands in fines / Airbnb

The company, which lets travellers stay in other people's homes via an online community, has filed a lawsuit against the city objecting to short-term rental rule changes that have been approved by San Francisco's board of supervisors.

The new legislation, due to come into effect in July, would require all Airbnb hosts to register with the city. A failure to do so would result in Airbnb being fined up to $1,000 per day for each listing in a bid to pressure the firm into making sure its listings are legal.

Airbnb argued that the new registration process is too complicated for users, saying that the new law "ignores the reality that the system is not working," and that it will "harm thousands of everyday San Francisco residents who depend on Airbnb".

Local government meanwhile contested that the law was designed to keep the brand in line with companies offering similar services.

"If you are a rental car agency, you have to make sure the person that you rent that vehicle to has a license before you rent them a car. That is exactly what we are asking the short-term platforms to do here," San Francisco supervisor David Campos told the San Francisco Chronicle.

Airbnb has previously faced issues in host cities such as Paris and Iceland. The latter recently moved to introduce restrictions on Airbnb rentals to protect culture and landscapes.

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