SANTA ANA, Calif., July 29 (UPI) -- Online rental site Airbnb has sued the city of Anaheim over a law that would fine the company and its competitors for listing homes or apartments that violate the city's rental regulations.
The lawsuit is the third by Airbnb, challenging a city's rules of liability for short term rentals. The company sued San Francisco in June for a nearly identical law that would fine online rental sites for any violations committed by the rental hosts. It is also suing New York.
Airbnb's argues the tourist-friendly city, home of Disneyland, a Major League Baseball team and a National Hockey League team, is violating the Communications Decency Act and the First Amendment.
Anaheim will require listings the city has not approved for rental to be removed from online sites or the sites can be fined from $500 to $2,000.
"Federal law clearly prohibits state or local governments from imposing this requirement," Airbnb said in a letter to its operators. "That's why we filed a lawsuit today in federal court challenging Anaheim's ordinance."