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Airbnb Could Face Hotel Industry Class-Action Lawsuit as NYC Cracks Down

Excerpt from Crain's New York

Aug 19, 2013 6:26 am

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Airbnb and other peer-to-peer apartment rental companies may be facing their largest legal hurdles, as regulators and competitors get serious about halting the shadow industry’s rapid growth.

— Eliza Ronalds-Hannon

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Airbnb

Airbnb apartment rentals are attracting the attention of hotels and regulators in New York and elsewhere. Airbnb


Government agencies are looking at new ways to regulate this shadow industry, while hoteliers are mapping out strategies to punch back at what they see as unfair competition…

According to sources who have met with the New York State attorney general’s office, Mr. Schneiderman’s staff is looking at ways to get around this legal conundrum…

The hotel industry is hoping to organize a class action lawsuit against Airbnb, said Mr. Dandapani, a director of the Hotel Association of New York City and a member of its executive committee. He believes the government could also compel Airbnb and its competitors to collect disclosure of tax forms, essentially forcing the companies to prove that their hosts are paying all of their taxes.

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