LOS ANGELES—HomeAway, a leading short-term rental platform, is facing a lawsuit filed by Los Angeles City over its violation of the city’s home-sharing law by allowing unregistered hosts to post listings, officials announced on March 21.
The city alleges HomeAway—which is a part of the Expedia Group and operates the popular rental platform Vrbo—for processing rental booking for unregistered hosts, with nearly 30 percent of its transactions in a month violating the city ordinance.