This is a devastating blow to owners! I read on another site that the penalty for illegal advertising can be 10K for the first violation. Yikes. We stayed in a beautiful, well-maintained, well-managed home in Ko'Olina last month and the owner is really devastated by this! They use the income to support their retirement so this will have a direct and real impact on them.
I've been brainstorming about this with her. We thought perhaps a solution might be to use alternate advertising sites (DM me for some names) where you have more freedom to post rates in a way that is compliant and also to interact with guests directly before booking.
There are also some FB groups specific to HI where you can post with a monthly rate.
Again, so sorry to hear this has happened to you and other Hon owners.
30 days or longer likely make you a long-term rental property... and the relationship is more tenant/landlord than owner/guest, and the laws are very different when you talk about tenancy vs transient rental. Vrbo is not a great place for tenancy rentals, that's not their primary focus.
IANAL... but it seems like you should have a location-local real estate lawyer in your phone contacts and this is a good time to reach out instead of hoping for free legal advice in an internet forum where everything is "true".