California Attorney General Rob Bonta announced that the California Department of Justice has issued over 200 warning letters to hotels and landlords in Southern California accused of price gouging. The department is also conducting active criminal investigations into these allegations. This action follows the declaration of a state of emergency on January 7, 2025.
"The price gouging that we’re seeing and hearing about needs to stop now," stated Attorney General Bonta. "These letters are just one of many tools my office is using to stop this illegal activity. May they serve as a declaration that we are taking swift action, and we will not stop until the price gouging does."
The warning letters inform recipients that reports alleging potential price gouging have been received by the DOJ. Although there is no assumption regarding the truth of these allegations, the letters remind recipients about California's anti-price gouging laws under Penal Code section 396.
Governor Gavin Newsom's declaration has triggered protections against raising rental housing prices by more than 10 percent for one year until January 7, 2026. The code also prohibits evicting tenants only to re-rent properties at higher rates than allowed before an emergency was declared.
Violators face criminal prosecution with penalties including up to one year in county jail and/or fines up to $10,000. Civil enforcement actions may result in penalties up to $5,000 per violation along with injunctive relief and mandatory restitution.
Californians are encouraged to report any instances of price gouging or related scams through oag.ca.gov/report or by calling (800) 952-5225. Reports should include detailed information such as screenshots, correspondence records, and contact details for involved parties.