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Airbnb is suing the city of Anaheim over a law that regulates short-term rentals.

The suit filed in late July argues the city violates free-speech rights and federal law by holding Airbnb responsible when users post listings for illegal short-term rentals.

Anaheim is home to Disneyland and Angel Stadium, and short-term rentals have proliferated as visitors seek cheaper alternatives to hotels.

The City Council voted to enhance current regulations, including fines for rental platforms that don’t ban illegal listings.

Airbnb argues the ordinance violates federal law that shields websites from responsibility for user-posted information.

Airbnb filed a similar suit against its hometown of San Francisco in June.

Topics Lawsuits California Sharing Economy