California AG Issues Price Gouging Alert After Emergency Declaration

California Attorney General Rob Bonta has issued a consumer alert in light of Governor Gavin Newsom’s emergency declaration, prompted by the powerful winter storms that recently swept through the state. With more rain and strong winds expected, residents are urged to stay vigilant.

A series of atmospheric rivers have unleashed intense rainfall and gusty winds, significantly increasing the risk of rapidly rising creeks and rivers, flooding, landslides, and debris flows. These conditions can pose serious threats to safety and property.

Bonta’s alert serves as a reminder that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who suspect they have fallen victim to price gouging are encouraged to report it to their local authorities or to the Attorney General’s office online.

According to California law, sellers are generally prohibited from charging prices that exceed the price they charged for an item prior to a state or local emergency declaration by more than 10%. For items that a seller only began offering after the emergency declaration, the law restricts prices to no more than 50% above the seller’s cost.

This law applies to a wide range of goods and services, including food, emergency supplies, medical supplies, building materials, and fuel. It also encompasses repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, as well as hotel accommodations and rental housing.

Violations of the price gouging statute are classified as misdemeanors and are subject to prosecution. Offenders may also face civil enforcement actions, which can include civil penalties of up to $2,500 for each violation, injunctive relief, and restitution to affected consumers.

Topics
California

California Attorney General Rob Bonta has issued a consumer alert in light of Governor Gavin Newsom’s emergency declaration, prompted by the powerful winter storms that recently swept through the state. With more rain and strong winds expected, residents are urged to stay vigilant.

A series of atmospheric rivers have unleashed intense rainfall and gusty winds, significantly increasing the risk of rapidly rising creeks and rivers, flooding, landslides, and debris flows. These conditions can pose serious threats to safety and property.

Bonta’s alert serves as a reminder that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who suspect they have fallen victim to price gouging are encouraged to report it to their local authorities or to the Attorney General’s office online.

According to California law, sellers are generally prohibited from charging prices that exceed the price they charged for an item prior to a state or local emergency declaration by more than 10%. For items that a seller only began offering after the emergency declaration, the law restricts prices to no more than 50% above the seller’s cost.

This law applies to a wide range of goods and services, including food, emergency supplies, medical supplies, building materials, and fuel. It also encompasses repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, as well as hotel accommodations and rental housing.

Violations of the price gouging statute are classified as misdemeanors and are subject to prosecution. Offenders may also face civil enforcement actions, which can include civil penalties of up to $2,500 for each violation, injunctive relief, and restitution to affected consumers.

Topics
California