Users' Claim That Airbnb Acted as Unlicensed Real Estate Broker Must Go to Arbitration

Two individuals who registered accounts with Airbnb to list apartments for rentals sued Airbnb in federal court, claiming that Airbnb violated Real Property Law Section 440, and General Business Law Section 349 by committing deceptive trade practices, fraud, and unjust enrichment. They claimed that by maintaining a website listing, advertising, and taking fees or commissions for property rentals posted by individual members on the site, Airbnb acted as an unlicensed real estate broker. The court ruled to delay any action pending arbitration. Airbnb's Terms of Service, set forth on its website, gave the plaintiffs reasonably conspicuous notice of their agreement to submit any complaint about their use of Airbnb's services to arbitration. 

Plazza v. Airbnb Inc.: Index No. 16-CV-1085, NYLJ No. 1517585973 (SDNY; 1/26/18; Broderick, DJ)