As residents in wildfire-ravaged regions of California begin the arduous process of recovery, California Attorney General Rob Bonta has announced that his office is actively investigating instances of price gouging targeting vulnerable disaster victims.
Bonta expressed concern over unscrupulous businesses, landlords, scam artists, and predatory buyers taking advantage of individuals grappling with the aftermath of the wildfires. He emphasized that these actions seek to exploit and further victimize those already in a vulnerable state.
Since the declaration of a state of emergency by California Governor Gavin Newsom on January 7, the California Department of Justice has received numerous reports of price gouging. Bonta revealed that his department is diligently investigating these reports and building criminal cases against the perpetrators.
Collaborating with various stakeholders, including housing and short-term rental companies like Airbnb, officials are working to prevent price gouging. Airbnb, for instance, is taking steps to block such practices on its platform.
Individuals found guilty of price gouging could face severe penalties, including up to a year in prison and fines of up to $10,000, Bonta cautioned.
Under California law, sellers are prohibited from increasing prices by more than 10% of the pre-emergency levels for existing items. For new items introduced after the emergency, the price cannot be raised by more than 50% of the item's cost. This law covers a wide range of essential goods and services, such as food, emergency supplies, medical supplies, building materials, gas, hotel accommodations, and rental housing.
Bonta's office clarified that the law extends to Los Angeles, Ventura counties, and neighboring Southern California counties experiencing heightened consumer demand due to the wildfires.
