California Attorney General Rob Bonta has filed charges against a real estate agent accused of price gouging victims of the Los Angeles Eaton Fire. The investigation was initiated following a complaint to the California Department of Justice (DOJ) by a couple seeking to rent a home after losing theirs in the fire. The incident occurred after the Governor's Emergency Order, which prohibits price gouging for fire victims, was enacted.
Attorney General Bonta emphasized the seriousness of price gouging during emergencies. "As I have said repeatedly, the price gouging must stop. Today, we are making good on our promise to hold price gougers accountable, with more to come," he stated. He encouraged the public to report incidents either locally or directly to his office via oag.ca.gov/report or through their hotline at (800) 952-5225.
The investigation uncovered that after applying to rent a home, the couple was informed of a 38% rent increase post-application, leading them to withdraw from renting. This hike exceeded the 10% limit specified in Penal Code section 396, prompting charges carrying potential penalties including up to $10,000 fines and 12 months in jail.
In collaboration with District Attorneys and other law enforcement entities, DOJ has launched several investigations into similar instances as part of its intensified efforts in Los Angeles County against fraudulent activities during this state of emergency declared on January 7, 2025.
Penal Code section 396 generally restricts price increases beyond 10% during declared emergencies unless justified by increased business costs. Violations can result in criminal prosecution with penalties up to one-year imprisonment and/or $10,000 fines, alongside civil actions including fines up to $2,500 per violation.
For those experiencing or witnessing such activities, reporting is encouraged via oag.ca.gov/LAfires or by calling (800) 952-5225. Reports should include detailed information like correspondence screenshots and realtor contact details.
A copy of the complaint is available for review online.