Los Angeles sues Airbnb over alleged price gouging after January wildfires

Lawsuit Allegations - Los Angeles is suing Airbnb for alleged price gouging after January's wildfires, claiming violations of anti-gouging laws on at least 2,000 rentals [1] - The city alleges Airbnb raised prices by 200%-300% (2 to 3 times) above the legal limit of 10% during the state of emergency [3][5] - The lawsuit includes allegations that Airbnb's algorithm, not just host choices, contributed to the price increases based on demand [3] - Los Angeles is also questioning the validity of Airbnb's "verified host" claims, suggesting some hosts have false identities or addresses [6][7] Airbnb's Response - Airbnb denies the accusations, stating it took action to inform hosts about their obligations regarding price increases during the state of emergency [1] - Airbnb claims to have sent a message on January 15th indicating that hosts attempting to price gouge would receive an error message [7] Legal Remedies Sought - Los Angeles is seeking a permanent injunction to prevent Airbnb from charging illegal rental rates during states of emergency [10] - The city is demanding restitution, requiring Airbnb to refund the difference between the legal price and the inflated price to affected renters [10] - Los Angeles is also pursuing civil penalties against Airbnb for its alleged behavior [11] Market Share and Responsibility - Airbnb holds an 80% market share in Los Angeles, implying a significant responsibility to ensure fair practices [6]