Los Angeles Sues Airbnb for Price Gouging, Fake Hosts in Wildfires
The Los Angeles City Attorney’s Office has filed a civil lawsuit against Airbnb, accusing the home-sharing platform of price gouging and allowing fake or unverified hosts during the January 2025 wildfires. City Attorney Hydee Feldstein Soto alleges Airbnb violated California’s Anti-Gouging Law by raising prices on nearly 3,000 rental properties after a state of emergency was declared.
Governor Gavin Newsom declared the emergency on January 7, 2025, triggering legal protections that cap rental increases at 10%. These protections remain in effect, having been extended most recently on June 24. The lawsuit claims Airbnb listings exceeded that limit, exploiting displaced residents seeking shelter in areas like Pacific Palisades and Altadena.
The lawsuit also accuses Airbnb of misleading consumers by falsely promoting its “verified” hosts and property listings. According to the city, some verified hosts used fake identities, and certain listed addresses were inaccurate or non-existent.
Filed under California’s Unfair Competition Law, the lawsuit seeks a permanent injunction to block Airbnb from continuing these practices during the emergency. It also calls for restitution to affected renters and civil penalties of up to $2,500 per violation.
“It’s unconscionable that Airbnb permitted prices to be jacked up on thousands of properties at a time when people had lost so much,” said Feldstein Soto. “Though Airbnb has taken steps to limit price gouging, evidence suggests violations continue.”
Airbnb, which earned $11.1 billion in revenue in 2024 and holds an estimated 80% share of Los Angeles’ short-term rental market, has not yet publicly responded.
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