Airbnb Inc. and other home-sharing firms won’t have to comply with a New York City law requiring them to turn over renter data until a lawsuit over the issue is resolved, giving the company a reprieve from a rule that threatened to cut its bookings in the city by half.
U.S. District Judge Paul Engelmayer on Thursday granted a request from Airbnb and HomeAway Inc. for a temporary injunction against the city ordinance, which was set to take effect Feb. 2. He ruled the companies are likely to win on their claim that the law violates the constitutional ban on unreasonable searches and seizures.
New York City council members voted 45-0 in July to restrict people in renting their apartments to tourists — a practice the city says raises rents, increases gentrification and disrupts neighborhoods because short-term rentals can be more profitable than long-term leases.
Under the law, Airbnb and similar sites must turn over to the city the names and addresses of renters and say whether rentals are for a whole apartment or just a room — disclosures that would help the city enforce the law making it illegal for most landlords to rent an apartment for fewer than 30 days.
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