The Los Angeles city attorney's office has filed a lawsuit against Airbnb over price gouging and unverified host listings at over 2,000 rentals amid ongoing state emergency conditions. The lawsuit demands a halt to illegal rental price hikes and seeks refunds for consumers charged excess amounts. Airbnb has been criticized for inadequate verification processes that could lead to security concerns for users. Despite the lawsuit, Airbnb claims to have contributed significant financial support and emergency housing to wildfire victims in Los Angeles, amounting to nearly $30 million.
Although Airbnb subsequently took steps to curtail price gouging, evidence indicates that illegal gouging on the site continues and may be ongoing.
Airbnb is aware that its verification processes are inadequate, potentially luring prospective tenants into a false sense of security about its hosts and locations.
Since the wildfires broke out, Airbnb contributed nearly $30 million to fire recovery efforts in Los Angeles, including free emergency housing to nearly 24,000 people impacted by the fires.
The lawsuit seeks fines of $2,500 for each instance of alleged price gouging in L.A., which could reach between 2,000 and 3,000 properties, or up to $7.5 million in total penalties.
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