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Los Angeles City Attorney Feldstein Soto Files Suit Against Airbnb, Alleging Price Gouging

LOS ANGELES COUNTY, CALIFORNIA, JUL 18 – Los Angeles alleges Airbnb enabled price increases exceeding 10% on at least 2,000 rentals during January wildfires, violating state anti-price gouging and unfair competition laws.

  • Los Angeles City Attorney Hydee Feldstein Soto filed a lawsuit against Airbnb on January 17, 2025, accusing the company of price gouging during Southern California wildfires.
  • The suit followed Governor Gavin Newsom’s January 7 state of emergency declaration that triggered California’s anti-gouging law, limiting rent increases to 10%.
  • The lawsuit claims Airbnb allowed illegal rent spikes on over 2,000 properties mostly affected by the Palisades and Eaton fires, despite Airbnb disabling its smart pricing tool and issuing error messages for excessive increases.
  • Airbnb disputes the allegations, highlighting Chief Executive Brian Chesky and nonprofit Airbnb.org’s nearly $30 million contribution to fire relief, including free emergency housing for almost 24,000 people.
  • The case seeks a permanent injunction to halt illegal rents and fines up to $2,500 per violation, underscoring ongoing concerns about misrepresented verified hosts and possible continued price gouging.
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U.S. News broke the news in New York, United States on Friday, July 18, 2025.
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