published on June 28, 2016 - 11:48 PM
Written by The Business Journal Staff

(AP) — Airbnb has sued the city of San Francisco over a new law requiring short-term rental companies to remove unregistered hosts from their websites.

The San Francisco Chronicle reports the company’s suit filed Monday in the U.S. District Court of Northern California seeks an injunction to suspend the law, which is set to take effect July 27.

San Francisco’s new short-term-rental law would make companies like Airbnb, HomeAway/VRBO and FlipKey liable for big fines and criminal penalties if they showcase listings that lack the city’s required registration number.

The company argues the rules run afoul of federal law, including the Stored Communications Act of 1986, which creates privacy protections for communications held by third-party Internet service providers. Airbnb says the amendments violate this federal law by requiring it to disclose user information to the city without a subpoena.

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