July 18, 2021 - OAKLAND – California Attorney General Rob Bonta last Friday issued a consumer alert following the Governor’s declaration of a state of emergency for Siskiyou County due to the Lava Fire, and Lassen and Plumas counties due to the Beckwourth Complex Fire. Both fires have destroyed homes, caused the evacuation of residents, and damaged critical infrastructure. Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.

“California’s wildfire season is just starting, and already we are facing devastating blazes throughout the state. As families quickly evacuate their homes in fear of the worst, they shouldn’t have to worry about paying high prices for essential supplies,” said Attorney General Bonta. “I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint with our office online at oag.ca.gov/report, or to contact their local police department or sheriff’s office.”

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before a state or local declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.
Source: CA. DOJ