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Los Angeles, CA – A local real estate agent is facing charges from California Attorney General Rob Bonta for alleged price gouging in the wake of the devastating Eaton Fire. The agent is accused of attempting to inflate rental prices for a couple who lost their home in the blaze.
This is the first prosecution for price gouging related to the recent wildfires. Bonta’s office has already issued over 500 warning letters to hotels and landlords suspected of similar practices.
“Price gouging must stop,” Bonta declared. He emphasized his commitment to holding those accountable who exploit the vulnerability of fire victims. The Attorney General vowed to aggressively pursue anyone attempting to profit from the disaster.
The couple sought to rent a home after Governor Gavin Newsom’s emergency declaration. They allege the agent increased the rent by 38% after receiving their application. State law prohibits price increases exceeding 10% after such a declaration.
California law allows a 50% price increase only for items a vendor started selling after the emergency declaration. The current price gouging prohibitions remain in effect until at least March 8th.
Price gouging convictions can carry a penalty of up to one year in jail and a $10,000 fine. The real estate agent, Mike Kobeissi, has been contacted for comment.
Attorney General Bonta encourages the public to report any instances of price gouging to his office.