California Attorney General Rob Bonta has issued a consumer alert following Governor Gavin Newsom's Executive Order N-23-25, which extends price gouging protections in response to the Los Angeles fires. The executive order prolongs these protections until July 1, 2025, covering hotels, motels, and rental housing. It also prohibits evictions intended to relist rentals at higher rates.
Attorney General Bonta emphasized that "price gouging during a state of emergency is illegal under Penal Code Section 396." He urged Californians who suspect they are victims of price gouging to report it to local authorities or his office through oag.ca.gov/report or by calling (800) 952-5225.
Governor Newsom's order includes exemptions for large homes in certain zip codes with high market values and newly constructed housing. These measures aim to maintain rental availability during recovery efforts and provide pricing flexibility for new buildings facing higher financing costs.
California law generally restricts sellers from charging more than 10% above pre-emergency prices or exceeding cost by more than 50% for items sold post-emergency declaration. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair services, transportation services, hotel accommodations, and rental housing. Exceptions exist if business costs increase.
Violators face criminal prosecution with potential penalties including one-year imprisonment in county jail and fines up to $10,000. Civil enforcement actions can result in penalties up to $2,500 per violation and mandatory restitution.
Attorney General Bonta remains committed to combating price gouging. Over 700 warning letters have been sent out by the California Department of Justice (DOJ), which also has active investigations into such practices. Recent charges include:
- January 2024: Charges against a real estate agent for attempting price gouging on a couple affected by the Los Angeles Eaton Fire.
- January 28, 2024: Charges against another real estate agent for similar attempts on an evacuated family.
- February 2, 2024: Misdemeanor charges announced by Los Angeles City Attorney Hydee Feldstein against a homeowner and real estate agent.
- February 18, 2024: Charges against a Southern California real estate agent and landlord for price gouging an evacuated victim due to the Eaton Fire.