California Attorney General Rob Bonta issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Plumas County due to the Gold Complex Fire, and in Butte and Tehama Counties due to the Park Fire. The fires have collectively burned over 181,000 acres, leading to mass evacuations, home destruction, and threats to critical infrastructure.
In the alert, Attorney General Bonta emphasized that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who suspect they are victims of price gouging are encouraged to report it to local authorities or the Attorney General at oag.ca.gov/report. A list of all current price gouging restrictions can be viewed online.
“As the Gold Complex and Park Fires force evacuations across Plumas, Butte, and Tehama Counties, 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,” said Attorney General Bonta. “I urge all Californians to listen to communication from officials, 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 pre-emergency prices for goods and services. For items first sold after an emergency declaration, sellers cannot charge more than 50% above their cost. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair or reconstruction services, emergency cleanup services, transportation services, freight and storage services, hotel accommodations, and rental housing. Exceptions exist if there is an increase in the cost of labor or materials for businesses.
Violators face criminal prosecution with penalties including up to one year in county jail and/or fines up to $10,000. Civil enforcement actions can also be taken with penalties up to $2,500 per violation along with injunctive relief and mandatory restitution. Both the Attorney General and local district attorneys are authorized to enforce these laws.
For additional information on price gouging regulations and FAQs provided by DOJ.