California Attorney General Rob Bonta has announced charges against a Southern California real estate agent accused of price gouging two families displaced by the Pacific Palisades Fire. The California Department of Justice investigation found that the agent increased rental prices by over 30% after an Emergency Order was in place, surpassing the 10% limit set by Penal Code section 396. This charge could result in a maximum fine of $10,000 and up to 12 months in jail.
“Today, we’ve announced another price gouging charge, this time against a real estate agent for price gouging two families in the wake of the Pacific Palisades Fire. Profiting off Californians’ pain though price gouging is illegal and I will not stand for it,” said Attorney General Bonta. He encouraged tenants to report their experiences to local authorities or his office via oag.ca.gov/LAfires or by calling (800) 952-5225.
The Department of Justice has issued over 750 warning letters to hotels and landlords suspected of price gouging during Southern California wildfires. They are working with District Attorneys, City Attorneys, and other law enforcement partners on active investigations into price gouging, fraud, scams, and unsolicited low-ball offers on property during emergencies.
Under California law, specifically Penal Code section 396, it is generally prohibited to increase prices by more than 10% after a state or local emergency declaration. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair services, transportation services, hotel accommodations, and rental housing. Exceptions exist if business costs have increased.
Violators face criminal prosecution with potential penalties including one-year imprisonment in county jail and/or fines up to $10,000. Civil enforcement actions can also be taken with penalties up to $2,500 per violation.
Californians suspecting they are victims of price gouging should report incidents with detailed information including screenshots of correspondence and contact details for those involved. Reports can be made through local authorities or the Attorney General’s office at oag.ca.gov/LAfires.
