Home sharing service Airbnb says it plans to sue New York over a new law which can hand out fines of up to $7,500 who advertise rentals of vacant apartments.
Airbnb claims the bill is unconstitutional and only helps ‘price gouging’ hotels.
The bill only affects hosts who rent out a vacant apartment in a multi-unit apartment block.
Residents who live on-site and rent out spare rooms will not be subject to the fines.
Governor Andrew Cuomo on Friday signed the legislation which is one of the toughest yet in the US, as it outlaws not only the operation but also the advertising of rentals.
Airbnb said it violates federal law as it penalises the company over content posted by its users, an argument it has used in a legal challenge brought against lawmakers in its home city of San Francisco.
Airbnb contends it is merely a platform to connect home owners and guests.
