Los Angeles Sues Airbnb for Wildfire Price Gouging

Los Angeles has filed a lawsuit against Airbnb, alleging the company allowed rental prices to increase by more than 10% on at least 2,000 properties following the January wildfires, violating California’s Anti-Gouging Law. City Attorney Hydee Feldstein Soto condemned Airbnb's actions during a time when many residents were displaced and needed emergency shelter. The lawsuit seeks a permanent injunction against illegal price hikes, restitution for affected renters, and civil penalties of up to $2,500 per violation. Airbnb disputes the claims, stating it informed hosts about legal obligations and took steps such as issuing error messages to prevent excessive price increases. The company also points to commendations from the California Attorney General for its compliance efforts during emergencies. City officials maintain that ongoing evidence of price gouging prompted the legal action to protect vulnerable residents.