Golden State Today

California Attorney General Rob Bonta has announced that the California Department of Justice (DOJ) has issued over 200 warning letters to hotels and landlords accused of price gouging. This action follows the declaration of a state of emergency on January 7, 2025, and is part of ongoing efforts to address illegal pricing practices. The DOJ is also conducting active criminal investigations into these allegations.

Attorney General Bonta emphasized the importance of halting price gouging: “The price gouging that we’re seeing and hearing about needs to stop now,” he stated. He added that the warning letters are one of many tools being used to combat this issue and protect Californians seeking refuge during emergencies.

The warning letters inform recipients about reports alleging potential price gouging related to their rental properties. While not assuming the truth of these allegations, the letters remind property owners and landlords about California's anti-price gouging laws. Under Penal Code section 396, raising rental prices by more than 10 percent after an emergency declaration is prohibited for one year. For units not previously rented before the emergency, prices cannot exceed 160 percent of fair market value as determined by federal standards.

Violations can lead to criminal prosecution with penalties including up to one year in county jail or fines up to $10,000. Civil enforcement actions may also apply, imposing penalties up to $5,000 per violation along with other legal remedies.

The DOJ encourages reporting any instances of price gouging through their website or hotline. They advise providing detailed evidence such as screenshots and contact information related to alleged violations.