The charges stem from violations of California’s price gouging law, which caps price increases at 10% during a declared state of emergency
California Attorney General Rob Bonta announced that his office has filed charges against a Southern California real estate agent for illegally raising rental prices for two families displaced by the Pacific Palisades Fire. The charges stem from violations of California’s price gouging law, which caps price increases at 10% during a declared state of emergency.
The California Department of Justice investigation found that the agent increased rental prices by more than 30% after the emergency order was issued, including for tenants who signed leases. The violation of Penal Code section 396 carries a potential penalty of up to 12 months in county jail and a $10,000 fine.
“Profiting off Californians’ pain through price gouging is illegal, and I will not stand for it,” Bonta said. He urged tenants to report suspected price gouging to local authorities, such as the Los Angeles City Attorney or District Attorney, or to his office via oag.ca.gov/LAfires or the hotline at (800) 952-5225.
California’s price gouging law prohibits charging more than 10% above pre-emergency prices for essential goods and services, including rental housing, food, emergency supplies, and gasoline. For items sold only after an emergency declaration, prices cannot exceed the seller’s cost by more than 50%. Exceptions apply if a business faces increased costs for labor, goods, or materials.
Violators face criminal penalties, including up to one year in jail and fines up to $10,000, as well as civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the law.
Bonta’s office has sent over 750 warning letters to hotels and landlords accused of price gouging following recent Southern California wildfires, according to his office.
Californians suspecting price gouging are encouraged to report incidents at oag.ca.gov/LAfires or by calling (800) 952-5225, providing screenshots, price histories, and contact details of the involved parties.
