Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC urged to investigate short-term lodging market, (Jul 14, 2016)
Organizations Mentioned:Airbnb | Airbnb, Inc. | Flipkey Inc. | HomeAway, Inc.
By Michael Menzhuber, J.D., LL.M.
U.S. Senators Brian Schatz (D-Haw), Diane Feinstein (D-Cal), and Elizabeth Warren (D-Mass) have called upon the FTC to study and quantify the degree to which individuals or firms are using online services such as Airbnb, Homeaway, VRBO, and Flipkey in a commercial manner by renting out entire residences or multiple residences simultaneously.
In their letter to FTC Chairwoman Edith Ramirez, the senators expressed concern that: (1) short-term rentals may be exacerbating housing shortages and driving up the cost of housing in communities; and (2) communities and consumers may be put at risk through violations of sensible health, safety, and zoning regulations under state law. Additionally, the senators noted reports of racial discrimination on some short-term rental platforms.
The letter also raises concerns about recent data that shows that commercial users (those with three or more unique units) in New York City accounted for a disproportionate share of revenue generated from short-term rentals and that 72 percent of the unique units rented appeared to violate state and local law.
The letter notes that, while platform companies are best positioned to provide the information and data necessary to properly assess the impacts of the short-term rental market on communities, they have been reluctant to do so. The letter concludes by stating that the FTC is best positioned to address this data gap in an unbiased manner and urges the FTC to conduct a review of commercial operators on short-term rental platforms.
Companies: Airbnb, Inc.; HomeAway, Inc.; Flipkey Inc.
News: ConsumerProtection FederalTradeCommissionNews