Headline: Airbnb’s “Just a Platform” Excuse Challenged in Nevada LawsuitHeadline: Airbnb’s “Just a Platform” Excuse Challenged in Nevada Lawsuit Body: Introduction: In June 2024, a class action lawsuit was filed against Airbnb in Nevada, alleging deceptive trade practices. The lawsuit challenges Airbnb’s claim that it is merely a platform and not responsible for the actions of its hosts. Due Diligence Requirements: Nevada state and local laws require Airbnb to verify that hosts are authorized to rent properties on a short-term basis. This includes checking for compliance with homeowners’ leases, condo association rules, and city zoning laws. Case Study: The lawsuit stems from the case of a single-family home in Las Vegas that was illegally rented on Airbnb by a tenant who was prohibited from doing so. The homeowner became aware of the violation after seeing strangers entering and exiting the property using a security code. Airbnb’s Failure to Act: Despite being notified about the violation, Airbnb allegedly refused to take action. The property remained listed on the platform as a “Superhost” rental. Legal Allegations: The lawsuit alleges that Airbnb: – Knowingly allowed hosts to list properties illegally – Facilitated advertising of illegal listings – Obtained income from properties rented in violation of the law Plaintiff’s Claims: The plaintiff, who represents property owners in Nevada, alleges that Airbnb willfully violated Nevada’s short-term rental laws and obtained income from illegal rentals. Section 230 Defense: Airbnb typically defends itself against such lawsuits by invoking Section 230 of the Communications Decency Act, which protects online platforms from being held liable for user-generated content. Significance: This lawsuit marks a significant challenge to Airbnb’s “just a platform” defense. It argues that Airbnb is responsible for ensuring that its hosts comply with the law and that it cannot profit from illegal rentals. Conclusion: The outcome of this lawsuit could have far-reaching implications for Airbnb and other short-term rental platforms. If successful, it could set a precedent for holding platforms responsible for ensuring the legality of their listings and protecting property owners from unauthorized rentals.
Another excuse of “We are just a platform”
By Trudy Grundland
This is my take on the story of the class action lawsuit filed against Airbnb in Nevada in June 2024. Giller v. Airbnb, Inc.. using the Nevada Deceptive Trade Practices Act. There must be someone in California who wants to do the same thing.
Nevada state and local laws require Airbnb to conduct due diligence on new hosts to confirm that the person is authorized to rent the property on a short-term basis. Airbnb is aware that someone may be violating a homeowners’ lease or condo association’s rules, as well as city zoning laws that restrict short-term rentals. These requirements would make the property ineligible for a city business license number, a requirement of the Las Vegas Municipal Code for all short-term rentals in the city, but there are “hosts” who are willing to circumvent the law and use fake license numbers.
This happened to the owner of a single-family home in Las Vegas. The woman rented her home long-term, at least a year, with prohibitions on subletting and short-term rentals.
A young woman rented the home in 2021 and renewed the lease in June 2022 and May 2023. The homeowner/landlord went to the home in November 2023 to do routine yard work and saw “four strangers freely entering and exiting the home using the security code on the front door.”
The homeowner saw that her home was listed for short-term rent on Airbnb with the renter listed as a “Superhost” and Airbnb was notified, but the platform “declined to take action” and allowed the renter to list the property on the site.
The class action lawsuit against Airbnb targets all individuals in Nevada who currently or in the past owned a property from June 10, 2020 to the present that was rented by an Airbnb host when the host was prohibited from renting the property on a short-term basis.
The Clark County Code of Ordinances requires short-term rental agents, such as Airbnb, to verify that the short-term rental unit has been issued a short-term rental permit and that the platform must “deactivate any listings for which a valid state or county permit number has not been issued, or which the department otherwise requests be removed from the permit holder, within five business days of receipt of the request.” CLARK COUNTY, NEV., CODE OF ORDINANCES § 7.110.080(c).
Although Airbnb is well aware that many hosts on www.airbnb.com are not authorized to rent a property on a short-term basis, Airbnb nevertheless enables these hosts to place their illegal listings on the platform. Airbnb also facilitates the advertising of these illegal listings to potential Airbnb guests and facilitates the short-term rental of such properties in violation of legal and/or contractual prohibitions on such short-term rentals.
The plaintiff’s complaint alleges that Airbnb willfully obtained income from a property that violated Nevada’s short-term rental laws by failing to conduct required due diligence when screening a new host and then knowingly allowing the host to continue to rent on the Airbnb platform without the owner’s consent. The plaintiff is requesting a jury trial and the amount in dispute is over $75,000.
Another example of Airbnb’s relentless pursuit of money. Their famous mantra: “We cannot be held responsible for the actions of our hosts and guests. Section 230 of Title 47 of the Communications Decency Act of 1996, which is Title V of the Telecommunications Act of 1966.”
