LOS ANGELES, CA – The Los Angeles County Board of Supervisors voted unanimously Tuesday to increase penalties for price gouging to a maximum of $50,000 per violation, aiming to prevent landlords and businesses from exploiting residents displaced by the region’s devastating wildfires.
The decision, passed in a 5-0 vote, strengthens existing state laws, which cap fines at $10,000 and allow for up to one year in jail for those found guilty of price gouging. Under California law, price gouging occurs when businesses or landlords charge more than 10% above pre-disaster prices for goods, services, or rent.
Supervisor Lindsey Horvath, who introduced the motion, said the increase is necessary to curb predatory practices in the wake of the fires that have destroyed more than 16,000 structures and displaced tens of thousands of residents.
“Price gouging laws have been in effect limiting the amount of money that can be charged for goods and services, including rent,” Horvath said. “Yet, there are bad actors who are taking advantage of this crisis.”
A study by housing advocacy group Rent Brigade found thousands of potential violations in just the first 11 days following the fires, including in areas not directly affected by the disaster.
Board Chair Kathryn Barger, who co-authored the motion, said she has seen a troubling pattern of price gouging that disproportionately impacts the county’s most vulnerable residents. “This is a bold action that sends a clear message that we will not tolerate the exploitation of people in crisis,” Barger said.
In addition to increasing penalties, the board authorized County Counsel to consider joining or initiating legal action against companies suspected of engaging in price gouging. The motion also targets price-fixing algorithms used by online housing platforms, which Supervisor Holly Mitchell likened to discriminatory housing practices that have historically excluded minority communities from homeownership.
“The rent-fixing algorithms being used today are just another version of redlining,” Mitchell said. “We must do everything in our power to ensure fair access to housing.”
The board also requested that major online housing platforms—including Redfin, Zillow, Apartments.com, Airbnb, and VRBO—display a banner on their websites notifying users of the county’s state of emergency and price gouging laws.
The motion will remain in effect for the duration of the local emergency as officials monitor housing conditions and enforce the new penalties.
