California Attorney General Rob Bonta has filed charges against a real estate agent and a landlord in Southern California for allegedly engaging in price gouging following the Eaton Fire. The charges stem from an investigation initiated after a complaint was lodged with the California Department of Justice (DOJ). The victim, who had been evacuated due to the fire, attempted to rent a home in Hermosa Beach. Despite an Emergency Order aimed at preventing price gouging, the defendants reportedly increased the rental price by 36%, surpassing the legal limit of 10% as outlined in Penal Code section 396.
Attorney General Bonta emphasized the DOJ's commitment to addressing price gouging: “The California Department of Justice remains focused on putting a stop to price gouging,” he stated. He encouraged the public to report such activities either to local authorities or directly to his office through their website or hotline. Bonta added, “Today, we’ve announced price gouging charges against both a real estate agent and a landlord for price gouging in the wake of the Eaton Fire."
In response to these events, DOJ has issued over 700 warning letters to hotels and landlords accused of similar practices. Additional criminal investigations into price gouging are ongoing as part of efforts coordinated with district attorneys, city attorneys, and other law enforcement agencies.
California law prohibits sellers from charging prices that exceed pre-emergency levels by more than 10%. For items sold post-emergency declaration, prices cannot exceed cost by more than 50%. These regulations apply across various sectors including food, emergency supplies, medical supplies, housing accommodations, and more.
Violators face potential criminal prosecution resulting in up to one year of imprisonment or fines up to $10,000. Civil penalties may also be imposed alongside injunctive relief and mandatory restitution.
Californians suspecting they have been victims of price gouging are urged to report incidents through oag.ca.gov/LAfires or via hotline at (800) 952-5225. Detailed documentation including screenshots and contact information is recommended for effective reporting.
For further details on current restrictions related to state emergencies declared by the Governor, individuals can refer online resources provided by the Attorney General’s office.