Airbnb Seeks To Block New Advertising Law In NY

Home sharing company Airbnb has asked a federal judge to prohibit New York officials from enforcing a new law that imposes fines of up to $7,500 on anyone who posts ads for illegal rentals.

The law, signed late last week by New York Governor Andrew Cuomo, gives new teeth to a 2010 measure that generally prohibits New York City residents from renting apartments for fewer than 30 days. In the past, landlords and other apartment owners -- but not renters -- were subject to fines for violating the short-term rental prohibition.

Airbnb, which also is challenging restrictive laws in California, alleges in a complaint filed Friday in U.S. District Court in Manhattan that the New York law violates the federal Communications Decency Act. That law immunizes Web sites from liability based on unlawful activity by users.

Airbnb argues that the wording of the new New York law doesn't make clear whether companies like itself, which serve as intermediaries, could be held liable for "advertising" short-term rentals.

"Given the ambiguity of the Act, Airbnb anticipates the government will argue that the Act applies to ... online platforms, and will seek to enforce the Act against Airbnb and other hosting platforms," the company writes in a motion seeking a restraining order.

Airbnb adds that the possibility of sanctions would require it to either screen and review all listings of New York rentals, or else to "remove entire categories of rentals, encompassing many lawful listings."

The company also says the law harms its reputation because it "creates the incorrect perception that Airbnb's own activites are unlawful."

New York officials are expected to respond to Airbnb's arguments by the end of the day.

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