AirBnB sues the city of San Francisco over new rental law

SAN FRANCISCO, June 28 (UPI) -- Airbnb Inc. is suing its home city of San Francisco to try and block a new rental that it claims would violate federal protections for Internet companies.

The new ordinance, which the city's Board of Supervisors passed in a 10-0 vote earlier this month, requires hosts for companies like Airbnb, VRBO and HomeAway to register with the city or be fined $1,000 for each host who violates the law through one of the companies.

Airbnb is challenging the regulation, and filing to have a preliminary injunction placed on the ordinance, which will take effect later this month.

Legislators passed the law trying to combat the city's housing crisis, but Airbnb contends the regulation violates the Communications Decency Act.

"This legislation ignores the reality that the system is not working and this new approach will harm thousands of everyday San Francisco residents who depend on Airbnb. It also violates federal law," Airbnb said on their blog. "This is an unprecedented step for Airbnb, and one we do not take lightly, but we believe it's the best way to protect our community of hosts and guests."

The battle is just the latest in a bad month for AirBnB and other short-term rental companies, with new regulations being passed in New York City and Chicago. Los Angeles is close to passing similar restrictions.