Following Governor Newsom's declaration of a state of emergency due to rampant wildfires, a consumer alert has been issued by California Attorney General Rob Bonta. Not unheard of in these unfortunate circumstances, the alert warns against illegal price gouging in the wake of the Gold Complex and Park Fires in Plumas, Butte, and Tehama Counties. These fires have consumed over 181,000 acres, resulted in the evacuation of thousands, and have laid homes to waste while threatening critical infrastructure. "Price gouging during a state of emergency is illegal", stated Attorney General Bonta in a warning retrieved from the Office of the Attorney General.
Victims of this unlawful practice have been urged to step forward and report incidents to their local authorities or directly to the Attorney General’s office. In the wake of emergencies that cast shadows of fear and uncertainty, price gouging can further deepen the plight of those already suffering the fire's harsh consequences. As per the Office of the Attorney General, Attorney General Bonta has reminded that essential items like food, emergency supplies, and housing should not face undue price hikes. He added, "This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more".
The state law prohibits businesses from increasing prices by more than 10% of what was charged before an emergency was declared. Moreover, for items not previously sold by a business before the emergency, it cannot charge a price that exceeds 50% of its cost. Many directly affected by the fires urgently need goods and services that fall under this protection, including food, medical supplies, and reconstruction services. However, exceptions to these rules may apply should there be an increase in the cost of business related to labor, goods, or materials, as affirmed by Attorney General Bonta.
Violators of these protections, designed to shield those caught in the vulnerable embrace of disaster, face serious consequences, including imprisonment and hefty fines. In specific numbers, criminal prosecution may result in up to one year imprisonment in county jail and fines reaching $10,000. According to the press release from the Attorney General's Office, the attorney general and local district attorneys are empowered to enforce these price control measures, which could include civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution.
