The company says that a recent request by the New York Attorney General's office will not be taken lightly, and it will "fight" for its users. October 7, 2013 8:15 AM PDT AirBnB, the social service that allows users to rent out their houses or apartments for a period of time as an alternative to hotels, is under fire from the New York Attorney General's Office. Attorney General Eric Schneiderman has subpoenaed data on all of AirBnB users in New York that have offered to rent out their homes to customers. According to a person familiar with the investigation, the Attorney General's effort stems from a New York State law signed in 2010 that places limits on a person's efforts to rent out their homes to others. The Attorney General's office has been investigating AirBnB for more than a month, a person familiar with the investigation told CNET. The investigation stemmed from complaints from lawmakers and housing advocates. Related stories Airbnb helps tenant win appeal in NY rental case Airbnb hires hotelier to lead host hospitality training AirBnB's first TV ad: You are a paper plane Airbnb, Lyft partner with new share-economy advocacy group Tampa is the nicest city in America, says Airbnb The crux of the issue appears to be so-called bad actors that find short-term rentals and run amok, according to a person familiar with the investigation. Some of those renters could be sidestepping paying taxes, the person indicated. In addition, the Attorney General's office wants to target those who are renting out multiple units in violation of state law or who are renting out their properties for longer than expressly allowed under the State's tax law, a person familiar with the investigation said. A person who is simply trying to rent out their units every now and then -- a so-called "casual user" -- will not be targeted in the investigation, according to the person. In its statement on the matter, AirBnB said that it agrees that "bad actors" are an issue, and indicated that it believes the Attorney General's office "is only seeking to target an incredibly small number of bad actors who abuse the Airbnb platform." Despite that cooperation, AirBnB isn't necessarily so pleased with the subpoena, indicating that the Attorney General's office wants access to all New York-based short-term renters on the company's service, despite plans to go after those "bad actors." AirBnB wants to work with the Attorney General to weed out the bad renters and keep the rest of its data secure and outside the prying eyes of lawmakers. "We are confident we can reach a solution that protects your personal information and cracks down on people who abuse the system," AirBnB said today in a statement. The Attorney General's legal action is just the latest issue AirBnB has faced over the last year. The company has been targeted by governments far and wide over its service, which some say, hurts the hotel business. AirBnB argues that such claims only serve to cater to "entrenched interests," and believes that its service is actually helping the hospitality industry, not hurting it. The New York Attorney General's office declined CNET's request for comment on the matter.
The company says that a recent request by the New York Attorney General's office will not be taken lightly, and it will "fight" for its users.
AirBnB, the social service that allows users to rent out their houses or apartments for a period of time as an alternative to hotels, is under fire from the New York Attorney General's Office.
Attorney General Eric Schneiderman has subpoenaed data on all of AirBnB users in New York that have offered to rent out their homes to customers. According to a person familiar with the investigation, the Attorney General's effort stems from a New York State law signed in 2010 that places limits on a person's efforts to rent out their homes to others.
The Attorney General's office has been investigating AirBnB for more than a month, a person familiar with the investigation told CNET. The investigation stemmed from complaints from lawmakers and housing advocates.
Related stories
- Airbnb helps tenant win appeal in NY rental case
- Airbnb hires hotelier to lead host hospitality training
- AirBnB's first TV ad: You are a paper plane
- Airbnb, Lyft partner with new share-economy advocacy group
- Tampa is the nicest city in America, says Airbnb
The crux of the issue appears to be so-called bad actors that find short-term rentals and run amok, according to a person familiar with the investigation. Some of those renters could be sidestepping paying taxes, the person indicated.
In addition, the Attorney General's office wants to target those who are renting out multiple units in violation of state law or who are renting out their properties for longer than expressly allowed under the State's tax law, a person familiar with the investigation said. A person who is simply trying to rent out their units every now and then -- a so-called "casual user" -- will not be targeted in the investigation, according to the person.
In its statement on the matter, AirBnB said that it agrees that "bad actors" are an issue, and indicated that it believes the Attorney General's office "is only seeking to target an incredibly small number of bad actors who abuse the Airbnb platform."
Despite that cooperation, AirBnB isn't necessarily so pleased with the subpoena, indicating that the Attorney General's office wants access to all New York-based short-term renters on the company's service, despite plans to go after those "bad actors." AirBnB wants to work with the Attorney General to weed out the bad renters and keep the rest of its data secure and outside the prying eyes of lawmakers.
"We are confident we can reach a solution that protects your personal information and cracks down on people who abuse the system," AirBnB said today in a statement.
The Attorney General's legal action is just the latest issue AirBnB has faced over the last year. The company has been targeted by governments far and wide over its service, which some say, hurts the hotel business. AirBnB argues that such claims only serve to cater to "entrenched interests," and believes that its service is actually helping the hospitality industry, not hurting it.
The New York Attorney General's office declined CNET's request for comment on the matter.
