California Attorney General Rob Bonta has issued a consumer alert following Governor Newsom’s declaration of a state of emergency for Butte County due to the Thompson Fire. The fire has burned 3,002 acres and led to the evacuation of thousands of residents. Attorney General Bonta reminded Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. Residents who believe they have been victims of price gouging should report it to local authorities or the Attorney General at oag.ca.gov/report.
“As the Thompson Fire forces evacuations across Butte County, I ask Californians to listen to communication from officials, care for your neighbors, and keep safe,” said Attorney General Bonta. “As Californians flee their homes, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more. I urge all Californians to heed evacuation orders, lend a helping hand where they can, and report price gouging when they see it.”
California law generally prohibits charging prices that exceed by more than 10% the cost of an item before an emergency declaration. For items first sold after an emergency declaration, the law prohibits charging prices exceeding the seller's cost by more than 50%. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair services, cleanup services, transportation services, storage services, hotel accommodations, and rental housing. Exceptions exist if labor or material costs increase for businesses.
Violators face criminal prosecution with potential penalties including up to one year in county jail and/or fines up to $10,000. Civil enforcement actions may also result in penalties up to $2,500 per violation as well as injunctive relief and mandatory restitution. The statute can be enforced by both the Attorney General and local district attorneys.
For further information on price gouging regulations and FAQs from DOJ on this issue please visit here.