California Attorney General Rob Bonta issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Kern County due to the Borel Fire. The fire, which began in the Sequoia National Forest last week, is part of the SQF Lightning Complex and has burned nearly 90,000 acres.
In his alert, Attorney General Bonta reminded Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. He urged those who believe they have been victims of price gouging to report it to local authorities or the Attorney General's office at oag.ca.gov/report.
“As the Borel Fire sweeps through Kern County communities, I want to issue another reminder: Price gouging during a state of emergency is illegal. 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 be prepared, keep safe, and understand that in California you have rights protecting you during an emergency.”
California law generally prohibits charging prices that exceed by more than 10% the price of an item before a state or local declaration of emergency. For items sold after an emergency declaration, prices must not exceed the seller's cost by more than 50%. This law applies to food, emergency supplies, medical supplies, building materials, gasoline, repair or reconstruction services, emergency cleanup services, certain transportation services, freight and storage services, hotel accommodations, and rental housing. Exceptions exist if labor or material costs increase for businesses.
Violators are subject to criminal prosecution with penalties including up to one year in county jail and/or fines up to $10,000. Civil enforcement actions may also be taken with penalties up to $2,500 per violation along with injunctive relief and mandatory restitution. The statute can be enforced by the Attorney General and local district attorneys.
For additional information on price gouging laws and restrictions currently in effect due to proclamations by the Governor or other officials can be found on DOJ's FAQs page.