Golden State Today

California Attorney General Rob Bonta issued a consumer alert today following Governor Newsom’s declaration of a state of emergency for Butte County due to the Thompson Fire. The fire has burned 3,002 acres and forced the evacuation of thousands of residents. In his alert, Attorney General Bonta emphasized that price gouging during a state of emergency is illegal under Penal Code Section 396.

Californians who believe they have been victims of price gouging are encouraged to report it to their local authorities or the Attorney General at oag.ca.gov/report. A list of all current price gouging restrictions can be viewed online.

“As the Thompson Fire forces evacuations across Butte County, I ask Californians to listen to communication from officials, care for your neighbors, and keep safe,” said Attorney General Bonta. “As Californians flee their homes, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more. I urge all Californians to heed evacuation orders, lend a helping hand where they can, and report price gouging when they see it.”

Under California law, charging prices that exceed by more than 10% the pre-emergency prices for goods or services is generally prohibited. For items sold only after an emergency declaration, prices must not exceed the seller's cost by more than 50%. The law applies to sellers of food, emergency supplies, medical supplies, building materials, gasoline; as well as providers of repair or reconstruction services, emergency cleanup services, certain transportation services, freight and storage services; hotel accommodations; and rental housing. Exceptions exist if labor or material costs increase for businesses.

Violators face criminal prosecution with potential penalties including one-year imprisonment in county jail and/or fines up to $10,000. Civil enforcement actions may also be pursued with penalties up to $2,500 per violation along with injunctive relief and mandatory restitution.

For further information on price gouging regulations visit DOJ's FAQs on price gouging online.