PUBLIC ADVOCATE FOR THE CITY OF NEW YORK

Letitia James


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May 12, 2014


Via Email
Chairman Thomas F. Prendergast
Metropolitan Transportation Agency
2 Broadway
New York, NY 10004

Dear Chairman Prendergast:

As you may know there have been serious questions regarding the
operations and practices of those using the services of the firm AirBnb in New York.
The Attorney General Eric Schneiderman has recently asserted that AirBnB makes
more than half its revenue in New York through running illegal hotels. He is
furthering his investigation and is currently subpoenaing records into these
practices. This seriously calls into question whether this firm is facilitating or
encouraging illegal behavior, including violating New York State law which prohibits
New Yorkers from renting out entire apartments for less than 30 consecutive days.
This practice has led to de-facto hotels being created, without proper oversight and
thus has caused numerous issues for neighborhoods; including but not limited to
driving up apartment prices impacting affordability for everyone in the City of New
York.

It is disconcerting to learn that the Metropolitan Transportation Authority
(MTA) has permitted AirBnb to utilize advertising space in areas it controls, even as
these investigations are ongoing. One only has to be in Penn Station on 34
th
Street to
see jumbotron digital images of several screens advertising AirBnB, and other
locations throughout the terminal (please see attachments).

The Penn Station Digital Network, operated by the MTA through its contract
with CBS Outdoor must adhere to the advertising standards promulgated by the
MTA. In these standards, you place limits upon advertisements that should not be
displayed or maintained, including an advertisement or information contained in it
[that] promotes unlawful or illegal goods services or activities [See 2012 -
Advertising Standards for Licensed Properties of the Metropolitan Transportation
Authority (sec. (a) ii)].

I am requesting an immediate disclosure of all contracts between the MTA,
NYC Transit or CBS Outdoor related to AirBnB advertising on poster, print or on
digital platforms in any format or location the MTA controls. Additionally, I request
PUBLIC ADVOCATE FOR THE CITY OF NEW YORK
Letitia James


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a list of where these advertisements are located, including any subway platform,
subway cars, or mass transit stations. I am further requesting copies of all
communications between the MTA, in print or electronic form with AirBnB, CBS
Outdoor, or any lobby firm or agent associated and representing them.

Finally, I wish to have any other policies or rules for permitting content at
these locations. Do you allow any firm to utilize your advertisement space? Do you
review legal issues or consult with the Attorney General prior to allowing such use?
How would the MTA distinguish between AirBnB and an online website that caters
to escorts or other activities, where the firm asserts their neutral position, but if as
the Attorney General asserts, allows users to overwhelmingly engage in illegal
activities? Would the MTA permit such use?

The gross and illegal commercialization by certain firms of New Yorks
limited housing stock using AirBnb and the promotion of such use on MTA property
is detrimental to the City and needs to end. Therefore, until AirBnb reforms its
business practices and ceases to allow an overwhelming amount of unlawful/illegal
practices from transpiring on their platform, the MTA should stop allowing it from
using its advertising space.

We look forward your response. If you have any further questions, please
contact my General Counsel for Investments and Operations, Larry Schimmel, Esq.
at (212) 669-2172.

Sincerely,


Letitia James
Public Advocate of the City of New York



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