Los Angeles has filed a lawsuit against Airbnb, accusing the home rental giant of price gouging during January’s wildfires that devastated Southern California. City Attorney Hydee Feldstein Soto announced the suit on Friday, alleging that rental prices on over 2,000 Airbnb properties in Los Angeles rose more than 10% between January 7 and 17—after Governor Gavin Newsom declared a state of emergency.
The complaint, filed in Los Angeles Superior Court, claims Airbnb failed to disable its “smart pricing” tool promptly. This feature automatically adjusts rental prices based on demand and remained active for listings in Los Angeles and Ventura counties during the emergency period.
Under California law, prices for essential goods and services—including housing—cannot increase by more than 10% during a declared state of emergency. The lawsuit states Airbnb violated this law and seeks an injunction to halt further unlawful price hikes, along with civil penalties of up to $2,500 per violation.
Feldstein Soto also accused Airbnb of misleading renters by claiming it had verified hosts and property locations, some of which reportedly did not exist.
Airbnb responded by highlighting its contributions to wildfire relief, including $30 million in support and emergency housing for nearly 24,000 people. The company added that its platform alerts hosts with error messages if they attempt to raise prices more than 10% above pre-emergency rates.
The wildfires, including the Palisades Fire and Eaton Fire, killed at least 30 people and damaged or destroyed over 16,000 structures, burning an area larger than Paris. Airbnb currently holds an estimated 80% market share of the short-term rental market in Los Angeles.
The case highlights the tension between digital platforms and regulatory compliance in times of crisis.


New York Moves to Ban Masked Law Enforcement During Immigration Operations
Federal and State Authorities Conduct Widespread Fraud Raids Across Minnesota
Rubio Approves $25.8 Billion Weapons Sale to Middle East Allies
Australia Targets Meta, Google, and TikTok With New News Payment Tax Proposal
Orsted Q1 EBITDA Beats Expectations Despite U.S. Impairments
Maersk Q1 Earnings Beat Expectations as Iran Conflict Clouds Shipping Outlook
Judge Dismisses Elon Musk’s Fraud Claims Against OpenAI, Trial to Proceed on Remaining Allegations
Comey Faces Charges Over Instagram Post as Free Speech Debate Intensifies
CDC Monitors U.S. Travelers After Hantavirus Outbreak on Luxury Cruise Ship
Medicare to Cover GLP-1 Weight-Loss and Diabetes Drugs Starting July 1
Trump DOJ Challenges Colorado’s Large-Capacity Magazine Ban in Second Amendment Lawsuit
Armani Group Eyes Strategic Stake Sale to Luxury Giants
Trump Administration Files Fraud Charges Against Southern Poverty Law Center Over Informant Payments
Judge Rules Use of Military Lawyers in Civilian Prosecutions Is Lawful
US Adds European Union to Section 301 Watchlist Amid Trade Concerns
Arm Stock Drops Despite Strong AI Chip Demand and Earnings Beat
Argentina Court Upholds Cristina Kirchner Asset Seizure in Corruption Case 



