(Updates throughout with court filing)
By Curtis Skinner
NEW YORK, April 21 Two-thirds of the New York
City listings on Airbnb, a popular online home rental
marketplace, could be illegal, the state attorney general said
on Monday in his latest move investigating the venture.
State law forbids subletting apartments for fewer than 30
days if residents are not present, yet 64 percent of Airbnb
listings offer entire apartments and nearly all have minimum
stays of less than a month, Attorney General Eric Schneiderman's
office said in a court filing.
Schneiderman opened an investigation last year into Airbnb,
a Silicon Valley venture capital-backed website that lets people
put up spare rooms or couches for rent.
It lists more than 19,500 New York City residences.
"Airbnb is simply looking out for its bottom line at the
expense of a law that protects quality of life for building
residents and safety for tourists," Attorney General spokesman
Matt Mittenthal said in an emailed statement.
Airbnb promotes itself as a service that offers reasonably
priced accommodations for visitors in nearly 200 countries. The
apartment hosts, as they are called, can enjoy the extra income
to pay bills or fund a vacation, it says on its website.
Airbnb has become one of Silicon Valley's most successful
start-ups in the five years since its founding. A group led by
private equity firm TPG Capital Management LP agreed on Friday
to invest $450 million in the company, valuing it at $10
billion, or more than either Hyatt Hotels Corp or Wyndham
The affidavit noted its analysis was not complete, as it had
to collect data from Airbnb's public website as opposed to the
company's private databases.
Schneiderman's office first demanded in August that the
company turn over records of all Airbnb hosts in New York state.
Prosecutors issued a subpoena in October after failing to obtain
the records, despite several rounds of negotiations with Airbnb
lawyers. Airbnb then went to court to block the subpoena.
Prosecutors and attorneys for Airbnb are scheduled to appear
in court in Albany, New York, on Tuesday.
"If the Attorney General was really interested in going
after a few individuals, he'd do a real investigation," Airbnb
spokesman Nick Papas said in an emailed statement. "Instead,
he's targeting thousands of regular New Yorkers.
"The New York Attorney General continues to say one thing
and do another," he said.
(Reporting by Curtis Skinner in New York and Supriya Kurane in
Bangalore; Editing by Ellen Wulfhorst and Jan Paschal)