California Attorney General Rob Bonta issued a consumer alert today following Governor Newsom’s declaration of a state of emergency in San Bernardino County due to the Line Fire. The fast-moving fire near the City of Highland has burned over 20,000 acres, prompting evacuations and threatening homes and critical infrastructure.
In the alert, Attorney General Bonta reminded Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. He urged residents 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 Line Fire forces evacuations across San Bernardino County, I ask Californians to listen to communication from officials and keep safe. I also want to be clear: California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies,” said Attorney General Bonta. “If you see price gouging, please file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office.”
California law generally prohibits charging a price that exceeds by more than 10% the pre-emergency price for an item. For items sold only after an emergency declaration, the law prohibits charging more than 50% above the seller's cost. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair services, cleanup services, transportation services, hotel accommodations, and rental housing. Exceptions exist if costs for labor, goods, or materials have increased 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 result in penalties up to $2,500 per violation and mandatory restitution. The Attorney General and local district attorneys can enforce these statutes.