A 3D printed people's models are seen in front of a displayed Airbnb logo in this illustration taken, June 8, 2016. REUTERS/Dado Ruvic/Illustratio
Airbnb Inc and New York City said on Friday they had
resolved a lawsuit brought by the company challenging a law it argued could
expose it to significant penalties for advertising short-term apartment
rentals.
Airbnb filed the suit in October after New York state
enacted a law imposing fines of up to $7,500 on hosts who advertise illegal
short-term rentals on platforms like Airbnb.
Airbnb had contended that the law's ambiguous wording
could allow New York authorities to apply it to online platforms like itself
that host third-party listings, creating the risk of significant civil
penalties and criminal liability.
Under the terms of the settlement, New York City
agreed that the law would not be enforced against the company and was instead
aimed at individual violators, a spokeswoman for Mayor Bill de Blasio said.
"The city will enforce this and other existing
laws against bad actors, and appreciates the additional enforcement powers this
new tool provides to protect New Yorkers and visitors from unsafe
conditions," said Melissa Grace, a mayoral spokeswoman.
San Francisco-based Airbnb in a statement said it saw
this agreement as a step forward for its hosts, with both sides agreeing to
work cooperatively on ways to address New York City's housing shortage.
"We look forward to using this as a basis to
finding an approach that protects responsible New Yorkers while cracking down
on illegal hotels that remove permanent housing off the market or create unsafe
spaces," Airbnb said.
The deal follows an earlier settlement with the New
York state attorney general, who agreed his office would refrain from taking
any action to enforce the law, citing an express provision stating enforcement
would be carried out by the city.
The lawsuit came amid ongoing clashes between the
online lodging service and public officials seeking to minimize the impact of
short-term rentals on neighborhoods and urban housing markets.
Airbnb argues it cannot legally be held responsible
for how landlords use its platform. If it is required to enforce local laws on
short-term rentals, that could drastically reduce listings in some of its
biggest markets.
The case is Airbnb Inc v. Schneiderman, et al, U.S.
District Court, Southern District of New York, No. 16-08239.
(Reporting by Nate Raymond; Editing by Nick Macfie)
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