Today, NetChoice commended the US Southern District Court of New York’s preliminary injunction of NYC’s anti-homesharing ordinance requiring short-term rental platforms, like Airbnb and HomeAway, to hand over huge amounts of sensitive customer data.
“New York City’s fight against their own residents has lead them to defy the constitution and violate the rights of New Yorkers,” said Carl Szabo, Vice President and General Counsel at NetChoice. “New York’s Southern District Court should protect the rights of NYC homeowners. The city’s anti-homesharing laws are dysfunctional and to enforce them New York City is trampling residents’ right to privacy.”
Here are some quotes from the Southern District Court’s decision:
- “[The ordinance] would invite such productions so as to permit regulators to troll these records for potential violations of law, even as to customers as to which there had been no basis theretofore to suspect any violation of law.” P.40
- “Existing Fourth Amendment law does not afford a charter for such a wholesale regulatory appropriation of a company’s user database.” P.40
- “A home-sharing platform has at least two very good reasons to keep host and guest information private, whether as to these users’ identities, contact information, usage patterns, and payment practices. One is competitive: Keeping such data confidential keeps such information from rivals (whether competing platforms or hotels) who might exploit it. The other involves customer relations: Keeping such data private assuredly promotes better relations with, and retention of, a platform’s users.” P.22
Link to opinion and order: netchoice.org/nycpreliminjunction
Washington DC, November 12, 2018 – The future of short-term rentals (STRs) throughout the nation’s capital is being put at risk by DC Council Bill – B22-0092 which would introduce a licensing system that would eliminate nearly all current short-term rentals like Airbnb, HomeAway and VRBO.
The bill would:
- impose zoning requirements that effectively eliminate nearly all short-term rentals;
- require short-term rental platforms to share private information about hosts with the city government;
- cost the city over $104 million in lost taxes and implementation costs;
- eliminate short-term rental competition allowing big-hotels to gouge visitors to the nation’s capital.
“Big hotels are the only real winners of DC’s anti-home sharing bill.” said Carl Szabo, Vice President at NetChoice. “The city’s latest anti-tech action threatens resident’s privacy and financial security.”
“I can think of a better way for the city to spend $100 million.”
“DC is going after short-term rentals to the detriment of home owners and at a cost of $104 million,” continued Szabo. “The City Council’s proposed rules would burden residents who use STR platforms to help make ends meet.”
A copy of coalition opposition letter can be found at: https://netchoice.org/wp-content/uploads/Association-Joint-DC-Council-Letter-150.pdf
NetChoice is a trade association of eCommerce and online businesses that share the goal of promoting convenience, choice, and commerce on the net.
“A crackdown on short-term rentals would allow companies like Marriott and Hilton to raise room rates even higher. Even worse, D.C. would need to spend more than $100 million to enforce these new regulations on residents — including losing tax revenue earned from short-term rentals.
Imagine what the District could do if it spent $350 million on affordable housing rather than on this new handout to big hotels.”
October 15, 2018 – Efforts by Palm Beach County to regulate short-term rentals (STRs) infringes on the constitutional rights of homeowners, invades the privacy of county residents and undermines a vital economic engine to the local economy, NetChoice filed in legal testimony today.
Proposed Ordinance 95-30 would require online STR platforms, like Homeaway, Airbnb and VRBO, to disclose user data to the government or face liability requirements.
NetChoice believes the ordinance:
- Violates the U.S. constitution.
- Breaks federal Internet law.
- Prevents local residents from earning extra income and would have wide-ranging negative impacts on the local economy.
- Threatens the privacy of local residents.
“Palm Beach County is flaunting years of federal protections that have benefitted consumers and enabled the Internet to become a vital economic engine for local, state and national economies,” said Carl Szabo, VP and General Counsel for NetChoice. “The existence of short-term rentals in Palm Beach benefits local residents as much as it does tourists. STRs allow local homeowners to pay their mortgages and afford the added burdens of local taxes and hurricane insurance. Visitors save money by staying in STRs enabling them to have extra cash to spend at local restaurants and stores.”
NetChoice’s testimony detailed how Palm Beach’s proposed ordinance breaks the 4th amendment of the U.S. constitution, as it requires unreasonable search and seizure of personal information. Further, the proposed ordinance also violates the Communications Decency Act, which protects online platforms from being legally responsible for content posted by their users. The law’s existence has enabled consumers and businesses to conduct billions of dollars of commerce on the internet.
Forcing Businesses to Turn Over Private and Personal Customer Information Violates the Rights of all New Yorkers
Washington, D.C., October-1, 2018 – Local Law 146, a short-term rental law passed by the New York City (NYC) Council and signed into law by Mayor de Blasio in August violates the Fourth Amendment of the U.S. Constitution and needs to be amended, NetChoice says.
Local Law 146 requires short-term rental (STR) platforms to disclose private and personal information of hosts who reserve STRs through them. This law is an attempt by the city government to improve enforcement of strict regulations on STRs.
However, NetChoice believes that the law has three fatal flaws as it:
- Breaks the 4th Amendment of the Constitution
- Defies the federal Electronic Communications Privacy Act
- Violates New York State privacy laws
“New York’s fight against their own residents has lead them to defy the constitution and violate the rights of New Yorkers,” continued Szabo. “New York’s Southern District Court should protect the rights of NYC homeowners. The city’s anti-home sharing laws are dysfunctional and to enforce them New York is trampling residents’ right to privacy.”