Golden State Today

California Attorney General Rob Bonta has issued a consumer alert following Governor Newsom's declaration of a state of emergency in Lake County to support recovery efforts from the Boyles Fire. The fire, now contained, affected the City of Clearlake, damaging or destroying over 30 structures.

In his alert, Attorney General Bonta reminded Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. He urged those who believe they have been victims of price gouging to report it to local authorities or the Attorney General's office at oag.ca.gov/report. A list of current price gouging restrictions due to gubernatorial proclamations can be viewed online.

"As the community of Clearlake recovers from the Boyles Fire, I want to remind folks that California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies," said Attorney General Bonta. "If you see price gouging, please file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office."

California law prohibits charging prices exceeding by more than 10% what was charged before an emergency declaration. For items sold after an emergency declaration, prices cannot exceed the seller's cost by more than 50%. This applies to food, emergency supplies, medical supplies, building materials, gasoline, repair services, cleanup services, transportation services, hotel accommodations, and rental housing. Exceptions exist if labor or material costs for businesses have increased.

Violators face criminal prosecution with penalties including up to one year in county jail and/or fines up to $10,000. Civil enforcement actions may also apply with penalties up to $2,500 per violation and mandatory restitution. Both the Attorney General and local district attorneys are authorized to enforce this statute.