LOS ANGELES — City Attorney Hydee Feldstein Soto announced today that the civil enforcement action her office filed against Airbnb will proceed after the Court overruled Airbnb’s request to dismiss the lawsuit. Feldstein Soto’s office filed this action last year alleging that the platform illegally increased rental prices of at least 2,600 properties during last year’s calamitous wildfires.
In rejecting Airbnb’s attempt to dismiss the lawsuit, the Court held that Feldstein Soto’s complaint adequately alleges that Airbnb violated California’s price gouging law and the Los Angeles Municipal Code by advertising and charging unlawful rental prices during a declared emergency. Airbnb offers a tool called “Smart Pricing”, allowing Airbnb to set, advertise, and adjust prices based on demand. Airbnb argued that the Airbnb hosts set the prices, but the lawsuit alleges that when Smart Pricing is turned on, Airbnb sets and advertises prices.
“This ruling confirms that our allegations of wildfire-related price gouging against Airbnb are legally sufficient to move forward in court. We look forward to presenting our case as we continue to seek justice for Angelenos who were exploited at their most vulnerable moments,” said Hydee Feldstein Soto, Los Angeles City Attorney. “My office will always hold accountable those who violate City and State laws, especially laws enacted to protect Angelenos in times of crisis.”
The court also held that that that the complaint adequately alleged that Airbnb has “falsely, deceptively, unfairly, and/or misleadingly” represented that host identities and property locations “have been ‘verified.’”
The City Attorney’s lawsuit against Airbnb, filed in July 2025, seeks injunctive relief, civil penalties, restitution and other remedies authorized by law.
This litigation is being managed by the City Attorney’s Public Rights Branch.
LASC Case #25STCV21244: The People of the State of California vs. Airbnb, Inc.
Minute Order Regarding Motion to Dismiss
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Hydee Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022. Her team of nearly 1,000 legal professionals, including 500+ attorneys, carries out legal work for the City of Los Angeles at her direction and under her supervision. She is the first female City Attorney in L.A. history.