Key points of Los Angeles Price Gouging Rules
California has enacted price gouging laws specifically in response to natural disasters like wildfires. These laws are designed to protect consumers from unfair price hikes during times of emergency. Here's a brief overview:
California’s Price Gouging Law:
Purpose: The law prevents businesses from increasing prices of essential goods and services by more than 10% following a declared state of emergency, such as after wildfires.
Applies to: The law covers a wide range of items, including food, water, gasoline, medicine, lodging, and building materials. It ensures that businesses don't take advantage of consumers' urgent needs during a crisis.
Penalties: Those found guilty of price gouging can face hefty fines and other penalties. Violators can be fined up to $10,000 per violation, and individuals can face criminal charges, including imprisonment for severe violations.
Post-Wildfire Context: After major wildfires like the 2017 and 2018 fires, price gouging laws were actively enforced to prevent exploitation. This also applies to other emergencies, such as earthquakes or floods, when Governor Gavin Newsom or the President issues a state of emergency.
These laws aim to prevent opportunistic pricing and ensure fairness in the aftermath of disasters when communities are already under stress. The price gouging statute relating to housing rentals is in effect in L.A. County until March 8, 2025. It may be extended.
