Sharing Economy. Local Government Bans Short Term Rental Ads. Lawsuit Ensues.

The city: Santa Monica, CA

The short term rental regulations: 

• No advertising
• Requires internet providers to provide information about those posting short term rentals for rent
• Home owners must be home during the rent
• Home owners must have a business license to operate as a short term rental

the lawsuit: HomeAway & AirBnB sued in federal court asserting 1st Amendment free speech violations, violations of the Communications Decency Act & the 4th Amendment 

Law360 | HomeAway, Airbnb Sue Santa Monica Over Ad Ban

Engadget | Airbnb claims Santa Monica ban violates the Constitution