Question

1. Citing the Digital Millennium Copyright Act (DMCA), Airbnb is challenging the New York law and others in the United States, arguing that it merely operates a digital marketplace, and thus is not responsible for the content that users place on its site. Do you think Airbnb has a strong argument? Why or why not?

2. Are you concerned that the concept of the sharing economy could be abused by unscrupulous “entrepreneurs” and thus give the entire novel concept a bad reputation? Why or why not? Explain.

Answer 1

1]

Airbnb's argument is not very strong. Although it is a marketplace, the platform is operated by Airbnb and it is responsible for the content such that the content does not violate local laws, is not abusive, and does not violate privacy.

The same argument was put forward by Amazon which claimed that it is not responsible for the goods sold on its site. Facebook had a similar argument when it said that it is not responsible for the content posted by its users. However, both companies lost the argument. Amazon now takes responsibility by blacklisting fake sellers. Facebook takes more care to prevent spread of abusive content and fake news.

2]

Yes, the concept of sharing economy could be abused by unscrupulous “entrepreneurs”.

An example is Airbnb. There are several home owners who misrepresent the features and quality of the home. Unsuspecting users book the homes, and have a bad experience. Airbnb denies responsibility, and the users feel cheated. Homeowners make a gain. These kind of entrepreneurs give the entire sharing concept a bad reputation