Airbnb, along with Expedia’s HomeAway, failed to persuade a U.S. court of appeals to strike down a Santa Monica law that makes the companies liable for illicit rentals there.
for booking rentals of residences that aren’t licensed by the city. The appellate panel agreed with the city that the restriction doesn’t violate the U.S. Communications Decency Act of 1996, which shields online services from liability for the content that their users post on their sites.
Airbnb is also fighting Paris, where it faces as much as $14 million in fines for allegedly posting illegal advertisements, and in November it sued Boston over a new ordinance that it says would limit short-term home rentals and impose unfair restrictions and financial penalties on the company. The 9th Circuit panel concluded that Santa Monica’s statute puts only an “incidental” burden on the companies’ constitutional right to free speech.
“Airbnb has made great strides around the world, working with dozens of cities to develop more than 500 partnerships including fair, reasonable regulations, tax collection agreements, and data sharing that balance the needs of communities, allow hosts to share their homes in order to pay the bills and provides guests the opportunity to affordably visit places like the California coast,” the company said in a statement.
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