Tag: Price

  In addition, DOJ has sent 500 price gouging warning letters to hotels and landlords

LOS ANGELES — California Attorney General Rob Bonta today announced the filing of charges against a real estate agent for attempting to price gouge a couple who lost their home in the Los Angeles Eaton Fire. This investigation began when a complaint was filed with the California Department of Justice (DOJ) after the couple tried to rent a home after the Governor’s Emergency Order went into effect, which protects fire victims from price gouging. As part of Attorney General Bonta’s work to protect Californians following the Southern California wildfires, DOJ has also sent 500 warning letters – and counting – to hotels and landlords who have been accused of price gouging. In addition, the office has more active criminal investigations into price gouging underway.

“As I have said repeatedly, the price gouging must stop. Today, we are making good on our promise to hold price gougers accountable, with more to come,” said Attorney General Bonta. “I have been urging the public to report any such incidents to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. The response has been astonishing and we have sent out 500 warning letters. Today, I am proud to announce that we have filed a case charging price gouging. May this announcement serve as a stern warning to those who would seek to further victimize those who have lost everything. DOJ is aggressively and relentlessly pursuing those who are trying to make a quick buck off of someone else’s pain.”

The investigation revealed that the couple applied to rent a home but after the application was received, they were informed that the price increased by 38%. They decided to not rent the house due to the increase in price. Due to the price being raised over the 10% limit laid out in Penal Code section 396, a charge was filed that carries potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail. 
 
Working alongside our District Attorneys, City Attorneys, and other law enforcement partners, DOJ has opened active investigations into price gouging as it continues to ramp up deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited low-ball offers on property during the state of emergency. DOJ has been working diligently to tackle this unlawful and unscrupulous conduct since a state of emergency was declared on January 7, 2025, and to further those efforts, the launch of a website dedicated to its response: oag.ca.gov/LAFires.
 
California law – specifically, Penal Code section 396 – generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller’s cost of the item by more than 50%. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the statute.

TIPS FOR REPORTING PRICE GOUGING, SCAMS, FRAUD AND OTHER CRIMES:

• Visit oag.ca.gov/LAfires or call our hotline at: (800) 952-5225.
• Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails
• Provide anything that shows what prices you were offered, when, and by whom.
• If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing. 
• Include first and last names of the realtors, listing agents, or business owners you spoke to. Be sure to include phone numbers, email addresses, home and business addresses, websites, social media accounts.
• Don’t leave out any information that can help us find and contact the business or landlord.

Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.

A copy of the complaint can be found here.