Golden State Today

California Attorney General Rob Bonta has announced charges against a real estate agent accused of price gouging victims of the Los Angeles Eaton Fire. The couple affected reportedly faced a 38% increase in rent after applying for a home, violating Penal Code section 396, which limits price increases to 10% during emergencies. This charge carries a potential penalty of up to $10,000 and 12 months in jail.

Attorney General Bonta emphasized the importance of accountability, stating, "As I have said repeatedly, the price gouging must stop. Today, we are making good on our promise to hold price gougers accountable, with more to come." He encouraged the public to report incidents via oag.ca.gov/report or by calling (800) 952-5225.

The California Department of Justice (DOJ) has issued 500 warning letters to hotels and landlords suspected of similar practices and is conducting active investigations into other cases. DOJ's efforts follow the Governor’s Emergency Order aimed at protecting fire victims from unfair pricing practices.

Working with District Attorneys and City Attorneys, DOJ is intensifying its investigation and prosecution efforts against fraudulent activities during this state of emergency declared on January 7, 2025. A dedicated website for these efforts is available at oag.ca.gov/LAFires.

Penal Code section 396 prohibits charging prices exceeding pre-emergency levels by more than 10%, or post-emergency declaration costs by more than 50%. Violators may face criminal charges resulting in fines or imprisonment and civil actions including penalties and restitution.

For those reporting price gouging or related crimes, the DOJ advises providing detailed evidence such as screenshots of communications and transaction histories. Reports can be made through their hotline or online resources.

Californians suspecting they are victims should contact local authorities or visit oag.ca.gov/LAfires for guidance on current restrictions due to gubernatorial proclamations.