Price Gouging Amid State Of Emergency In SoCal: Consumer Alert

SOUTHERN CALIFORNIA — Amid a state of emergency due to a powerful storm bearing down on Southern California, consumers are being urged to report any price gouging in their communities.

On Sunday, Gov. Gavin Newsom declared a state of emergency in Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura counties. Price gouging during a state of emergency is illegal in California.

"Our State’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies," Attorney General Rob Bonta said in a released statement. "If you see price gouging — or if you've been the victim of it — I encourage you to immediately file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office."

California law generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For any item a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%.

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, according to Bonta.

Those convicted of violating the state's price gouging statute are subject to criminal prosecution that can result in one year 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, according to Bonta.