“In this Feb. 22, 2018, photo, Airbnb co-founder and CEO Brian Chesky speaks during an event in San Francisco.” AP PHOTO/ERIC RISBERG, FILE
by Bill Lucia
“Santa Monica, California scored a significant win in federal appeals court on Wednesday, with a ruling that promises to set a favorable precedent for local governments seeking to regulate home-sharing and short-term rental websites like Airbnb.
“Affirming a lower court’s decision, the U.S. 9th Circuit Court of Appeals rejected claims by Airbnb and HomeAway.com that the city’s home-sharing regulations were illegal under a federal law that shields internet companies from legal risks they could face from third-party content. Similar cases are pending elsewhere.
“‘Now we have a precedent that really, really opens the door to regulation,’ said Abbey Stemler, a professor of business law at Indiana University and a leading scholar on the sharing economy.”
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