Airbnb has files a lawsuit against its home town San Francisco over new rental rules to be introduced in the city in July.

The travel accommodation web service Airbnb could find itself lible to pay out thousands of dollars in fines following the introduction of new short-term letting law.

The multibillion dollar company, which connects travellers online, allowing visitors to stay in other people’s homes via their world-wide online community, is objecting to a short-term rental rule which would require all Airbnb hosts to register with the city administrators.

Hosts failing to register would result in Airbnb being fined up to $1,000 per day for each listing. This follows a spate of fraudulent online ads  and is a bid to force Airbnb to making sure its listings are genuine.

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Airbnb is arguing that the new registration process is too complicated for its users. It says that the new law “ignores the reality that the system is not working,” and that it will “harm thousands of everyday San Francisco residents who depend on Airbnb”.

Local government in San Francisco have argued that the law is designed to keep the Airbnb brand in line with companies offering similar services.

“If you are a rental car agency, you have to make sure the person that you rent that vehicle to has a license before you rent them a car. That is exactly what we are asking the short-term platforms to do here,” San Francisco supervisor David Campos told the San Francisco Chronicle.

Airbnb has previously faced issues in host cities such as Paris, and in London landlords have been concerned about the amount of unauthorised sublettings that have come to light as a result on ads on Airbnb.

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