LOS ANGELES, CA – A Southern California real estate agent and landlord are facing criminal charges for allegedly inflating rent prices for a wildfire evacuee, officials said, in what authorities describe as an unlawful case of price gouging.
According to the California Attorney General’s Office, the victim had evacuated from the Eaton Fire in Altadena and attempted to rent a home in Hermosa Beach. After the state issued an emergency order, the landlord and real estate agent increased the rental price by 36%, violating price gouging laws, officials said. The victim filed a complaint with the California Department of Justice, prompting an investigation.
California’s Penal Code section 396 prohibits businesses from raising prices on essential goods and services by more than 10% following a declared state of emergency. This includes food, emergency and medical supplies, building materials, gasoline, hotel accommodations, and both long- and short-term rental housing.
If a seller or business begins offering a new product or service after the emergency declaration, the law prohibits charging a price that exceeds 50% of fair market value. The only exception is if the price increase is due to higher costs for labor or materials.
The charge carries a potential penalty of a fine of up to $10,000 and a maximum sentence of one year in jail.
California Attorney General Rob Bonta’s office said that more than 700 warning letters have been issued to landlords, hotels, and businesses accused of price gouging since the state’s emergency order was declared. Investigators are also reviewing multiple additional cases for potential criminal charges.
Authorities urged the public to report suspected price gouging by visiting oag.ca.gov/report or calling (800) 952-5225. Officials provided guidance on what to include when filing a complaint, such as screenshots of messages, emails, and advertisements that show the price increase.
Victims are also encouraged to submit any documentation of prior pricing, as well as the names, phone numbers, and addresses of the businesses or landlords involved.
Price gouging laws are designed to prevent businesses from taking advantage of consumers during emergencies, officials said. Law enforcement continues to investigate potential violations and is encouraging residents to remain vigilant.
