The progressive senator from MA, who has taken on a high-profile role in the presidential race, co-signed a letter to the Federal Trade Commission (FTC) on Wednesday, requesting that the agency “study and quantify” the extent to which the short-term lodging market consists of “persons or firms acting in a commercial manner by renting out entire residences or multiple residences simultaneously”.
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At the FTC’s June 9, 2015, workshop entitled “The “Sharing” Economy: Issues Facing Platforms, Participants and Regulators” there was widespread agreement that more information and data was needed to properly assess the impacts of the short-term rental industry on communities.
“We are concerned that short-term rentals may be exacerbating housing shortages and driving up the cost of housing in our communities”.
Senator Elizabeth Warren has urged the federal government to investigate Airbnb and other short-term rental companies in a move that experts say marks an unprecedented step in United States lawmakers’ formal scrutiny of the “sharing economy”. And even if platform companies do share their data, concerns have been raised about the reliability of this data. “We welcome any opportunity to work with lawmakers and regulators who want to learn more about how home sharing helps the middle class”.
A spokesperson for the FTC confirmed that the commission received the letter but could not comment further. One study of 10 of the largest cities in the USA found that 51 percent of hosts depend on this extra money to make ends meet – with 13 percent saying they’ve managed to fend off foreclosure or eviction because of homesharing.
But some housing advocacy groups and state and local officials have disputed Airbnb’s claims that its platform is a boon to working people. A judge has already put the amendments, which were set to take effect later this month, on pause pending a ruling on Airbnb’s request for a temporary injunction, which won’t be heard until September. Airbnb sued its home city in response, prompting the board of supervisors to revisit the issue. Commercial renters, some of whom controlled more than 10 apartment buildings in the city, “dominated the platform” in terms of revenue, Schneiderman found. Only around 25 percent of hosts listing rentals on Airbnb are registered, according to city figures released earlier this year. The data behind Schneiderman’s findings came from Airbnb, but only after the Attorney General’s office subpoenaed the company. Dianne Feinstein, D-Calif., Elizabeth Warren, D-Mass. and Brian Schatz, D-Hawaii.
Being a $25 billion company with operations that span the globe is a good reason to get out of bed in the morning. “The introduction of today’s amendment acknowledges the legal infirmities with the city’s recent changes to the short-term rental law”, Airbnb says.
San Francisco, Airbnb’s home town, has also pushed back against the company’s rapid growth.
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The ultimate aim of both sets of amendments is to impose steep fines and criminal penalties to hold services like Airbnb, HomeAway and FlipKey accountable when vacation-rental listings lack the city’s mandated registration number for hosts.
