Golden State Today

California Attorney General Rob Bonta has issued a consumer alert following Governor Gavin Newsom's Executive Order N-23-25, which extends price gouging protections until July 1, 2025. This extension comes in response to the Los Angeles fires and aims to safeguard consumers during this state of emergency.

Attorney General Bonta emphasized that price gouging is illegal under Penal Code Section 396. He urged Californians who suspect they have been victims of price gouging to report it to local authorities or contact his office via oag.ca.gov/report or by calling (800) 952-5225.

"Governor Newsom’s executive order extends protections for Californians who are still reeling from the damage caused by the Los Angeles fires," said Attorney General Bonta. "State and local law enforcement across California will continue to use the full force of the law to go after people who illegally price gouge."

The executive order extends protections for hotels, motels, and rental housing while prohibiting evictions intended to relist rentals at higher rates. Exemptions apply for large homes in specific zip codes with high market values and newly constructed housing.

California law prohibits charging more than 10% above pre-emergency prices or exceeding cost by more than 50% for items sold post-emergency declaration. This applies to food, medical supplies, building materials, gasoline, repair services, hotel accommodations, and rental housing. Exceptions exist if costs have increased for businesses.

Violators face criminal prosecution with penalties including up to one year in county jail and fines up to $10,000. Civil penalties can reach $2,500 per violation along with injunctive relief and restitution. The statute is enforced by the Attorney General and local prosecutors.

Attorney General Bonta has taken action against price gouging through warning letters and active investigations. In January 2024, charges were filed against real estate agents involved in price gouging cases related to the Los Angeles Eaton Fire. Further charges were announced in February against individuals accused of similar violations.