In the aftermath of the Pacific Palisades and Eaton fires, Airbnb allegedly increased the rental prices of at least 2,000 properties in Los Angeles, the city claims in a lawsuit filed Friday.
Filed by City Attorney Hydee Feldstein Soto’s office, the complaint is seeking a permanent injunction to prohibit Airbnb from charging illegal rents, in addition to penalties of up to $2,500 for each violation.
“It’s unconscionable that Airbnb permitted prices to be jacked up on thousands of rental properties at a time when so many people lost so much and needed a place to sleep,” Feldstein Soto said.
The vacation rental platform allegedly violated an anti-gouging law, which prohibits a 10% or more increase on essential goods or services, including house rentals, during a state of emergency.
“We dispute the allegations in this lawsuit and will continue supporting the city of Los Angeles in its recovery and rebuilding efforts,” an Airbnb spokesperson wrote in a statement to NBC Los Angeles.
The law, first approved in 1994, was put into effect in January when Gov. Gavin Newsom declared a state of emergency amidst the wildfires.
The deadly fires in the Pacific Palisades and Altadena burnt more than 12,000 homes and other structures, causing tens of thousands of Angelenos to be left without a place to stay. Hundreds of residents who were affected are believed to have booked rentals on Airbnb, Feldstein Soto’s office said.
In January, Airbnb announced it would send an error message to hosts who attempted to raise prices by more than 10%, and remind hosts that price gouging in a state of emergency is illegal. These efforts were praised by California Attorney General Robert Bonta in a Jan. 16 press conference.
“In response to the state’s emergency declarations, Airbnb took action to help hosts understand their obligations with respect to price increases in Los Angeles,” the Airbnb spokesperson wrote.
“Although Airbnb subsequently took steps to curtail price gouging, evidence indicates that illegal gouging on the site continues and may be ongoing,” Feldstein Soto said. “This lawsuit sends a clear message that we will not allow people, particularly at their most vulnerable moments, to be exploited without consequences.”
The complaint also says Airbnb misleadingly represents the verification status of hosts and property locations. It alleges some of Airbnb’s “verified hosts” or “verified” property addresses are non-existent or false.
In March 2025, Feldstein Soto’s office also accused a group of property owners of price gouging, claiming they increased rent up to 113% higher than before the wildfires for some of their properties.