In the aftermath of the Pacific Palisade and Eton fires, Airbnb is said to have raised rental prices for at least 2,000 Los Angeles properties.
The complaint, filed by city attorney Heidi Feldstein Soto’s office, calls for a penalty of up to $2,500 for each violation, as well as a permanent injunction to prohibit Airbnb from claiming illegal rents.
“It’s unconscious to allow Airbnb to jack prices on thousands of rental properties when they lost so many people and needed a place to sleep,” Feldstein Soto said.
The vacation rental platform is said to have violated the Prevention Act, which prohibits an increase of more than 10% in essential goods or services, including home rentals, during an emergency.
“We challenge this lawsuit claim and continue to support the City of Los Angeles’ recovery and reconstruction efforts,” an Airbnb spokesman wrote in a statement to NBC Los Angeles.
The law, first approved in 1994, came into effect in January when Gavin Gavin Newsom declared a state of emergency amid a wildfire.
The fatal fires in Pallisad and Altadena in the Pacific Ocean burned more than 12,000 homes and other structures, leaving tens of thousands of Angeleno without a place to stay. Hundreds of affected residents are believed to have booked rentals through Airbnb, Feldstein Soto’s office said.
In January, Airbnb announced that it would send an error message to hosts who tried to raise prices by more than 10%, reminding hosts that cutting prices is illegal in emergencies. These efforts were praised by California Attorney General Robert Bonta at a January 16 press conference.
“In response to the state’s emergency declaration, Airbnb has taken action to help hosts understand their price hike obligations in Los Angeles,” an Airbnb spokesman wrote.
“Then Airbnb has since taken steps to reduce price gouging, but the evidence shows that illegal gouging on the site may continue and be ongoing,” Feldstein Soto said. “This lawsuit sends a clear message that people will not be allowed to be misused without consequences, especially at the most vulnerable moments.”
The complaint also states that Airbnb, if misleading, represents a status of verification of the host and property location. Some of the “validated host” or “validated” property addresses in Airbnb claim to be nonexistent or false.
In March 2025, Feldstein Soto’s office denounced a group of price gouging property owners, claiming it increased rents by up to 113% more than before the wildfires on some properties.
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