California Cracks Down on Price Gouging as Fires Rage On
Authorities Take Action to Protect Consumers
As thousands of Californians flee the ongoing Palisades and Eaton fires in Southern California, authorities are taking swift action to prevent price gouging. Under California Penal Code 396(c), businesses are prohibited from raising prices on essential goods and services, including hotel rooms, rental housing, and some supplies, by more than 10% during an emergency.
What is Prohibited during an Emergency
These pricing mandates remain in effect until 30 days from the initial emergency declaration. Contractor-related services extend up to 180 days. Businesses caught violating these regulations can face stiff penalties, including fines up to $10,000, one year in jail, or a combination of both.
What Consumers Should Do
To report suspected price gouging, consumers are encouraged to keep records and report potential violators online and/or call 800-593-8222. In the recent Ventura County Mountain Fire, price gouging was reported, with "extremely high security deposits for rental units" being a common issue.
Attorney General’s Consumer Alert
Attorney General Bonta issued a consumer alert on price gouging following the state of emergency declaration earlier this week on Tuesday night. The alert served as a reminder to consumers to be vigilant and report any suspicious activity.
FAQs
Q: What is price gouging?
A: Price gouging is the act of raising prices on essential goods and services during an emergency by more than 10%.
Q: What is the penalty for price gouging?
A: Violators can face fines up to $10,000, one year in jail, or a combination of both.
Q: How can I report suspected price gouging?
A: Consumers can report potential violators online and/or call 800-593-8222, and are encouraged to keep records of any suspicious activity.
Q: How long do the pricing mandates stay in effect?
A: Hotel rooms, rental housing, and some supplies are subject to a 10% price increase limit for 30 days from the initial emergency declaration. Contractor-related services are subject to a 180-day limit.
