Golden State Today

California Attorney General Rob Bonta has announced charges against a real estate agent and a landlord in Southern California for allegedly engaging in price gouging following the Eaton Fire. The charges stem from an incident where the rental price of a Hermosa Beach home was increased by 36% after the Governor's Emergency Order, which prohibits such actions, was enacted. This increase exceeded the legal limit of 10% as outlined in Penal Code section 396. If found guilty, the accused could face a fine of up to $10,000 and up to one year in jail.

"The California Department of Justice remains focused on putting a stop to price gouging," stated Attorney General Bonta. He urged the public to report any instances of price gouging to local authorities or his office via oag.ca.gov/report or by calling (800) 952-5225.

In addition to these charges, the DOJ has issued over 700 warning letters to hotels and landlords suspected of similar activities. The office is actively investigating more cases related to price gouging as it deploys resources across Los Angeles County.

The state law under Penal Code section 396 restricts businesses from raising prices beyond certain limits during emergencies unless justified by increased costs. Violators may face criminal prosecution with potential imprisonment and fines, along with civil penalties and mandatory restitution.

For those wishing to report price gouging or other related crimes, detailed instructions have been provided on how best to document and submit evidence through oag.ca.gov/LAfires or via their hotline at (800) 952-5225.

Californians who suspect they have been victims of such practices are encouraged to report them promptly either locally or directly through the Attorney General’s office.