Airbnb settles NY lawsuit
New York City – 23 November 2016
Airbnb has settled its lawsuit against New York state over a new law restricting short-term rentals, with both sides agreeing that New York City, not the state, is responsible for enforcing it, Bloomberg reported.
Airbnb and New York Attorney General Eric Schneiderman agreed in court papers filed on Tuesday that the state would be dismissed from the suit.
The new law prohibits advertising of short-term rentals – less than 30 days – with violators facing fines of as much as US$7,500.
Hours after Governor Andrew Cuomo signed the bill into law on October 21, Airbnb sued the city and the state claiming the restrictions were unconstitutional and infringed its free-speech rights.
“We have long sought to work with leaders in New York on clear, fair rules for home sharing, and we’re continuing to do all we can to protect the thousands of middle-class families who depend on home sharing to earn a little extra money,” Airbnb spokesman Peter Schottenfels said.
Airbnb is fighting local rental regulations throughout the US, driven by opposition from the hotel industry and cities, which stand to lose revenue from hotel occupancy taxes.