Attorney General Bonta Issues Consumer Alert Following Extension of Price Gouging Protections Until July 1, 2025

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following Governor Gavin Newsom’s Executive Order N-23-25, which extends certain price gouging protections in response to the Los Angeles fires. In today’s alert, Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. 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/report or by calling (800) 952-5225. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.

“Governor Newsom’s executive order extends protections for Californians who are still reeling from the damage caused by the Los Angeles fires. State and local law enforcement across California will continue to use the full force of the law to go after people who illegally price gouge,” said Attorney General Bonta. “To build strong cases, I urge existing and prospective tenant victims to report price gouging to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225.”

Among other actions, the executive order issued today extends price gouging protections to July 1, 2025, for hotels, motels, and rental housing and includes prohibitions on evictions of tenants to relist the rental at a higher rate. The order retains exemptions for large homes in specified zip codes with high fair market values and which have not recently been on the rental market to help ensure they are available for rental during recovery efforts. The order also exempts newly constructed housing to increase housing supply by enabling pricing flexibility for these new buildings that face higher financing costs.

To read the executive order in its entirety, please see here. 

California law 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 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.

Attorney General Bonta has been steadfast in his commitment to going after people who price gouge. In addition to sending over 700 warning letters to hotels and landlords, the California Department of Justice has several active investigations into price gouging. Additionally:

• On January 2024, Attorney General Bonta 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. 
• On January 28, 2024, Attorney General Bonta announced the filing of charges against a second real estate agent for attempting to price gouge a family who was evacuated due to the Los Angeles Eaton Fire. 
• On February 2, 2024, Los Angeles City Attorney Hydee Feldstein announced brining  misdemeanor price gouging charges against a homeowner and real estate agent who allegedly engaged in price gouging in violation of the law, in collaboration with DOJ’s Disaster Relief Task Force. 
• On February 18, 2024, Attorney General Bonta announced the filing of charges against a Southern California real estate agent and a landlord for price gouging a victim who was evacuated due to the Eaton Fire.