City Attorney Hydef Feldstin Soto said Friday that Los Angeles tried Air BNB, alleging that it allows for an increase in the cost of affecting at least 2,000 properties during the January forest fire in southern California.
According to a complaint filed in the Los Angeles Superior Court, between January 7 and 17, the city “at least two thousand – and possibly more than 3,000” fare prices for Airbon B properties increased by more than 10 percent.
Los Angeles said it increased earlier that Airbon B had disabled its “smart price” tool, which allows owners to automatically adjust fare prices based on demand for Los Angeles and Ventura counties.
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Air BNB was accused of violating a California law, which prohibits more than 10 % increase in the prices of essential goods and services after an emergency.
Governor Gavin Newsom on January 7 declared an emergency in Los Angeles, mobilizing the state’s anti -dignity law, and has been extended several times.
While Air BNB has taken steps to reduce the price hike, with an estimated 80 % market share in the city, the evidence suggests that it continues, said Feldstin Soto.
He allegedly accused the San Francisco -based company of misrepresenting potential tenants that it had “confirmed” hosts and property locations on his website, some of which are not present.
Related: Wild Fire Season Preview: The remaining 2025 risk is at high risk, La Wild Fire Paradim may follow
In a statement, Airbon B said the company, chief executive Brian Chesky, and its affiliated unprecedented Airbinb.com has contributed to about $ 30 million in fire recovery efforts, including free emergency housing for about 24,000 people.
It also states that if Air BNB hosts receive error messages if they try to raise prices more than 10 % at pre -emergency rates.
Airbin B has been accused of violating California’s unfair competitive law.
It tries to restrain an order to prevent illegal fares during the emergency, and in addition to the civil fines up to $ 2500 per violation.
The southern California forest fire killed at least 30 people and destroyed more than 16,000 structures.
Most of the damage occurred in Pacific Palacedes and Eaton Fire in Altadina. The fire charged a larger area than Paris.
(Edit of reporting dan craft via Stimple in New York)
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