Popular Hotel Rental Website Airbnb Sued for Privacy Breach

Since the rise of the immensely popular Airbnb, a website that allows homeowners to rent out their rooms to tourists, visitors and business travelers, it has gained the ire of hotels and public officials as both entities accuse the company of being a health and safety hazard and not being licensed by state and municipal regulators.

In May, Airbnb and state Attorney General Eric Schneiderman agreed to a deal that would see the website hand over anonymous data from more than 16,000 New York hosts who lease their units through the website. The purpose of the deal was for the government to gain access to those who are taking advantage of the new service by operating illegal hotels.

New York City

The deal would also require Airbnb to then give the state the names, addresses and taxpayer identification numbers of these hosts when they are requested by state investigators. Airbnb was about to distribute the personal information of 124 hosts to the AG, but then a new lawsuit was launched against Airbnb.

About two dozen New Yorkers, who are identifying themselves as the New Yorkers Making Ends Meet In the Sharing Economy, are alleging that Airbnb’s deal “violates its fiduciary duty to shield sensitive private information from third parties.” Adam Leitman Bailey, the group’s attorney, said the move is “unheard of!”

“Basically, they’re traitors!” Bailey stated, notes the New York Daily News. “These hosts are their partners. Instead of thanking them, they’re making them spend money hiring a lawyer to fight this. It’s disgusting. They should go out of business over this treacherous behavior.”

Nick Papas, an Airbnb spokesperson, confirmed that the website would not take further action regarding data until the court makes a final decision on the latest lawsuit.

Poll finds support of room sharing

A new poll by Quinnipiac University found that a majority of New York City residents support homeowners being allowed to rent out their rooms. The survey discovered that 56 percent were in favor of allowing homeowners to receive payment by strangers to rent out their room for a few days akin to a hotel. More than one-third (36 percent), though, said it should be strictly prohibited.

Although Airbnb did not finance the survey, it did release a statement on its website:

“This poll confirms what we’ve known for some time: The majority of New Yorkers support home sharing and believe they should be able to share the home in which they live,” wrote Airbnb executive David Hantman. “We look forward to continuing to educate even more people about the Airbnb community in New York and how Airbnb hosts and guests make this amazing city an even better place.”

Democratic State Senator Liz Krueger told the New York Post that the poll is “misleading” because city dwellers are already allowed to use the rooms in their home as rentals as long as they’re home. Krueger has been a well-known opponent of Airbnb for quite some time.

Schneiderman nor his staff issued a comment on the poll.

Airbnb was founded in 2008 and has more than half a million listings in over 33,000 cities in nearly 200 countries.