Airbnb ponders legal action over New York short-term rental limitations
Airbnb has threatened to take legal action if the state of New York enacts legislation currently being considered that would make it illegal to advertise apartment rentals for less than 30 days. The bill, which was passed earlier this year, impacts on all rentals, however Airbnb hosts are likely to be the hardest hit, facing fines of between $1,000 and $7,500, for advertising listings of whole apartments in shared buildings for less than 30 days. Airbnb General Counsel Rob Chesnut has written to New York Governor Andrew Cuomo, stating the bill violates several Constitutional amendments.
Airbnb isn't going down in New York without a fight.

The home-sharing company on Tuesday sent a letter to New York Governor Andrew Cuomo, the speaker of the New York State Assembly and the New York Senate president threatening legal action if the state does not back down from a bill that could limit much of Airbnb's operations in the state.

The bill(opens in a new tab), passed in June but not yet signed into law, would make it illegal to advertise listings for apartments that violate an existing law banning rentals of whole apartments in shared buildings for fewer than 30 days.

New York's law prohibiting short-term rentals predates the escalation of its struggle with Airbnb, but the new bill would effectively make advertising or listing certain apartments on Airbnb illegal and subject the host to fines ranging from $1,000 to $7,500.

The bill doesn't limit advertising for all listings, but rather those that are already technically illegal.

SEE ALSO: Airbnb asked to disclose data on 172 users so far this year

"We want to formally notify the State that if [the bill] is signed into law by Governor Cuomo, Airbnb would have no choice but to immediately file suit against the State of New York and ask a court to declare the statute invalid and unenforceable as well as to award any damages and fees as appropriate," Airbnb General Counsel Rob Chesnut wrote in the letter(opens in a new tab).

Airbnb says the law would "lead to financial duress for the Airbnb New York host community," with the fines it imposes on people who violate its regulations.

More specifically, Airbnb claims that the bill violates the First Amendment by restricting "commercial speech," or posting listings.

"The ban on advertising is, at its core, a ban on speech," Chesnut wrote in the letter.

The company also says the bill violates the due process clause of the Fourteenth Amendment because it imposes criminal penalties for publishing an Airbnb listing without fulfilling the mens rea, or evidence, requirement of the clause.

Airbnb also claims the bill violates the Communications Decency Act by holding both the Airbnb platform and individual hosts liable for violations of the rule. And since a listing for a New York property could technically be published from anywhere, the company says the law represents an attempt by the state to govern outside its borders.

The state bill most directly threatens Airbnb in New York City, where the company has come under fire for contributing to a crisis in affordable housing. But Airbnb in the letter defends its presence throughout the state, citing its listings in the Capital Region, the Finger Lakes, Long Island and other areas.

In response to an inquiry about Airbnb's letter, Cuomo spokesman Rich Azzopardi told Mashable, "This is one among more than 500 bills that was passed by the Legislature in the last weeks of the legislative session. It remains under review by Counsel’s Office."

To coincide with its legal threats, Airbnb on Wednesday started airing new advertisements in the New York City region. The ads, in English and Spanish, show New York Airbnb hosts talking about how they rely on the service to bring in extra money in an expensive city. The featured hosts all live in Upper Manhattan and Queens, rather than the Midtown and lower Manhattan neighborhoods that see more commercial operators and higher-priced listings.

The ads don't directly mention the state's bill.

Airbnb also released a slew of new data Wednesday about its listings in New York.

The state bill applies to forms of advertising rentals other than Airbnb listings, but the home-sharing company stands to be by far the most significantly affected.

Airbnb has sued cities before. In June, the company sued San Francisco over a decision to fine the service $1,000 a day per unregistered host. Its action in New York has been expected(opens in a new tab) since lawmakers there voted in favor of the advertising bill in June.

"Assembly Bill 8704-C, if signed, would be tantamount to a rejection of an effort to pursue a commonsense policy resolution and leave Airbnb with no choice but to stand up for its New York hosts and immediately commence litigation against New York State," the company said. "We urge you to choose the path of partnership instead."