Nearly a year ago, Airbnb filed a lawsuit against the city of San Francisco, challenging a law the city passed attempting to regulate their disruption of the hotel industry. The legislation not only required Airbnb host-users to register with the city and adhere to strict limits, the city made it illegal for the company to collect fees from the host-users that were not registered with the city as short-term rental providers.

Airbnb challenged the law on the basis that it violated a federal act protecting the online publishers of information from liability. Unfortunately for Airbnb, a federal judge found their argument unconvincing. The court explained that the San Francisco law did not penalize anything involved with the publishing of information, but rather, penalized the separate conduct of collecting fees from hosts that do not register with the city.

In the wake of that decision, Airbnb and the city reached a settlement after much negotiation and problem solving. The settlement will allow business to continue for Airbnb while also accomplishing the goals the city’s legislation sought to achieve.

Details of the Settlement

Under the settlement, which is anticipated to gain the approval of city supervisors, Airbnb has agreed to implement a system that would involve the city of San Francisco in their sign up process for hosts within the city. Additionally, the company agreed to deactivate listings identified by the city as having failed to register.

 

Read Full Article: Source: Airbnb Settles Short-Term Rental Dispute in San Francisco

 

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