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Los Angeles Sues Airbnb Over Alleged Wildfire Price Gouging

The city’s complaint demands an injunction with civil fines for each violation, plus penalties tied to alleged false verification of over 2,000 wildfire-era listings.

Airbnb logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
POLAND – 2025/03/02: In this photo illustration, an Airbnb logo seen displayed on a smartphone. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)

Overview

  • The lawsuit accuses Airbnb of enabling rent hikes above the 10% emergency cap on more than 2,000 properties during January’s southern California wildfires.
  • Los Angeles seeks a court order to halt unauthorized rate increases during the state of emergency and impose up to $2,500 in fines for each instance of price gouging.
  • The complaint alleges that Airbnb misled renters by claiming hosts and property locations were verified when some listings did not actually exist.
  • Airbnb denies wrongdoing, citing its automated system that blocks increases over 10% and its nearly $30 million in wildfire relief contributions, including free emergency housing.
  • The case spotlights growing legal scrutiny of online rental platforms under California’s anti-gouging law, which remains in effect through January 2026.