California Warns More than 200 Hotels and Landlords of Price Gouging Complaints in Wake of Fires

Price Gouging Complaints Reach Crisis Point

California Atty. Gen. Rob Bonta has sent more than 200 letters to landlords and hotels warning them that they’ve been accused of wildfire-related price gouging, his office announced Friday.

Letters Notify Recipients of Price Gouging Complaints

The letters notify recipients that they’re subject to a price gouging complaint and place them on notice of the law’s provisions and penalties for violating it. In addition to the letters, Bonta noted that his office has active criminal investigations into price gouging.

Landlords and Hotels Accused of Excessive Price Increases

Online listings have shown landlords jacking up prices 50% or more above what advertised rents were prior to last week’s fires, far in excess of the 10% increases allowed under the law. Activist groups have cobbled together spreadsheets of alleged violators and pressed authorities to take action.

Gov. Gavin Newsom Takes Action to Protect Tenants

Also on Friday, Gov. Gavin Newsom issued an executive order prohibiting evictions against tenants who shelter one or more people displaced by the wildfires even if doing so would otherwise violate lease provisions.

Executive Order in Effect Until March 8

“Opening your place of residence to help shelter those in need is not only encouraged and generous, but deserves to be protected,” Newsom said in a release.

Conclusion

California is taking swift action to address price gouging complaints and protect tenants affected by the recent wildfires. The state is working to ensure that landlords and hotels comply with the law and that tenants are not taken advantage of during this difficult time.

FAQs

Q: What is price gouging?

A: Price gouging is the practice of charging exorbitant prices for essential goods and services, such as housing, during a state of emergency or natural disaster.

Q: What is the law regarding price gouging in California?

A: California law prohibits price gouging during a state of emergency or natural disaster, and allows for increases of up to 10% above the pre-emergency price.

Q: What is the penalty for violating the price gouging law in California?

A: Violators of the price gouging law in California can face criminal penalties, including fines and imprisonment.

Q: How can I report price gouging in California?

A: You can report price gouging in California to the California Attorney General’s office or to your local law enforcement agency.