Airbnb gives in to regulator's demand to test for racial discrimination by hosts

San Francisco-based company reached an agreement with California's housing agency amid complaints of guests being rejected for their race

Airbnb will allow the government to test for racial discrimination by hosts as part of an agreement with California that is the first of its kind and could pave the way for stricter regulations and greater public scrutiny.

The California Department of Fair Employment and Housing (DFEH) announced Thursday that it had resolved a complaint it filed against Airbnb with an agreement that forces the company to permit the state to conduct "fair housing testing" of certain hosts. That means that for the first time the San Francisco-based company is giving a regulatory body permission to conduct the kind of racial discrimination audits that officials have long used to enforce fair housing laws against traditional landlords.