Officials target price gouging during wildfires emergency

State law enforcement officials have opened multiple predatory pricing investigations into fraud, assorted price-gouging scams and unsolicited low-ball offers on property during the current state of emergency in Los Angeles County, it was announced Thursday.

Governor Gavin Newsom today issued an executive order assisting the immediate housing needs of individuals displaced by the firestorms in Los Angeles.

It will extend price gouging prohibitions on hotel, motel, and rental housing in Los Angeles County to March 8, 2025.

California Attorney General Rob Bonta said law enforcement has been working to tackle "this unlawful and unscrupulous conduct" since the emergency was declared on Jan. 7.

Bonta also announced the creation of the Disaster Relief Task Force and the launch of a website dedicated to its response: OAG.ca.gov/LAFires.

"Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal," Bonta said in a statement.

"Over the past week, I have encouraged the public to submit complaints to local law enforcement or my office. The response has been overwhelming. Today, I can confirm that we are actively investigating multiple cases. Let there be no doubt that we will hold those accountable who are attempting to exploit Californians and profit from their pain."

The Disaster Relief Task Force is made up of a team of professionals from state law enforcement and legal divisions including the Division of Law Enforcement, Special Prosecutions Section, Cybercrime Section and the Consumer Protection Section, as well as local law enforcement, Bonta said.

The California Department of Justice also has special agents actively in the field investigating leads that came directly from complaints from victims and witnesses in the impacted areas.

DOJ has sent letters to trade associations and platforms for both short- and long-term rentals regarding price-gouging regulations. The letters emphasized that these companies are expected to oversee their platforms and communicate with their members to ensure all listings adhere to the law. DOJ also sent similar letters to hotel chains, requesting they provide the office with additional information to ensure price gouging is not happening, the agency said.

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 items 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%.

The law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline. It also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods or materials has increased for the business.

To report suspected predatory pricing, go to oag.ca.gov/LAfires or call 800-952-5225.

Include screenshots of all correspondence including conversations, text messages, direct messages, voicemails and call records. Provide anything that shows what prices you were offered, when and by whom.

After a declared state of emergency, renters are protected from rental housing price gouging and unfair rent hikes. Both state law and local regulations prohibit rental housing prices from increasing by more than 10% during these difficult times.

If you believe you have been overcharged for goods, services, or housing, keep your records and receipts. Here’s how to file a price gouging complaint:

Online: Online complaint reporting tool

Phone: 800-593-8222

Email: complaints@dcba.lacounty.gov

Additional reporting by City News Service.