The city of Los Angeles has filed a civil enforcement action against Airbnb, accusing the company of price gouging more than 2,000 properties during the January wildfires in the Pacific Palisades and Altadena. Los Angeles City Attorney Hydee Feldstein Soto announced the lawsuit on Friday, alleging that Airbnb violated California Penal Code section 396, the Anti-Gouging Law. This law prohibits increasing the prices of essential goods and services, including rental housing, by more than 10% following a declared emergency.
The state of emergency was declared on January 7, 2025, by Governor Gavin Newsom, and it has been extended multiple times since then. According to the City Attorney’s Office, Airbnb allegedly raised rental prices beyond the legal limit during this period, affecting thousands of residents who were forced to evacuate their homes due to the wildfires.
The lawsuit also claims that Airbnb misrepresented the verification of host identities and property locations, potentially misleading renters. The city is seeking a permanent injunction to prevent Airbnb from charging illegal rents and misrepresenting host information during the state of emergency. Additionally, the lawsuit demands restitution for consumers charged illegal rents and civil penalties of up to $2,500 per violation.
City Attorney Feldstein Soto stated, “It’s unconscionable that Airbnb permitted prices to be jacked up on thousands of rental properties at a time when so many people lost so much and needed a place to sleep.” She emphasized that the lawsuit aims to hold Airbnb accountable and prevent exploitation during vulnerable times.
The litigation is being managed by the City Attorney’s Public Rights Branch, and the case is filed under LASC Case # 25STCV21244: The People of the State of California vs. Airbnb, Inc.
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