The American Hotel and Lodging Association (AHLA) has issued a statement regarding a New York Times article that details New York City officials uncovering an Airbnb scheme ultimately involving more than 100 misleading host accounts and 18 corporations created to run an illegal hotel business with the goal of avoiding lodging taxes and oversight.
“While the magnitude of this illegal scheme involving Airbnb is shocking, the fact is similar bad actors have been caught running the same ploy in other major cities across the country,” William “Chip” Rogers, president and CEO of AHLA said in a statement. “Airbnb is the main culprit to blame for these illegal activities because the company refuses to prohibit this type of illegal activity and vigorously attacks city leaders who try to rein in commercial operators. Those who set up illegal and fraudulent rentals ultimately reduce the availability and affordability of housing for local permanent residents.”
As the New York Times story notes: posting a unit that should not be listed on Airbnb is a civil offense, not a criminal one, and the city typically issues violations that can result in fines of thousands of dollars; lawsuits are filed in the most egregious of cases. In this lawsuit, New York Cuty is seeking more than US$20 million from the defendants.
Airbnb did not respond to request for comment in time for this article.