In response to the Governor’s declaration of a state of emergency for multiple Southern California counties due to severe winter storms, California Attorney General Rob Bonta issued a consumer alert today, emphasizing the illegality of price gouging during such emergencies.
The state of emergency encompasses Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura counties, where residents are grappling with high winds, damaging rain, and heavy snowfall.
Attorney General Bonta urged Californians to prioritize safety, support their neighbors, and heed guidance from state and local officials, especially while traveling. Emphasizing the importance of the state’s price gouging law under Penal Code Section 396, he stated, “Our State’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies.”
Under California law, during a state or local emergency declaration, sellers are prohibited from charging prices exceeding 10% of the pre-emergency price for most items. For items introduced post-declaration, the law caps prices at 50% above the seller’s cost. The law encompasses various essential goods and services, including food, emergency supplies, medical supplies, building materials, gasoline, repair services, cleanup services, transportation, storage services, hotel accommodations, and rental housing.