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Published on January 11, 2025
Los Angeles County Cracks Down on Price Gouging Amid Devastating Wind and FirestormsSource: Unsplash/Thom Milkovic

In the wake of severe wind and firestorms that have battered Los Angeles County, leaving many residents with no choice but to flee their homes, the County's Department of Consumer and Business Affairs (DCBA) is putting its foot down on price gouging, a practice that sees businesses sharply increase prices on essential goods during emergencies, according to a recent press release. As defined under California's Penal Code 396, it is illegal for businesses to hike prices more than 10 percent during a declared emergency, a seasonal issue that remains pertinent as wildfires and storms recur with alarming regularity.

Rafael Carbajal, DCBA Director, expressed the department's commitment to enforcing the law, pointing out that "Los Angeles County residents should not have to be burdened with price hikes by unscrupulous businesses when they are already dealing with the disruption and stress of life-threatening emergencies," businesses implicated in such activities face the risk of fines, jail time or both, as stated by the County of Los Angeles. The agency consequently urges consumers to report any suspected infringements through its website or by phone.

With the onset of the latest emergency, the price-gouging laws are again in full force, viable for 30 days from the emergency declaration and extending to 180 days for certain services, like those provided by contractors, as per the County of Los Angeles. Businesses are therefore obligated to keep meticulous records of their pricing during this period to avoid the consequences of noncompliance. The DCBA points to the law's existence not as a mere bureaucratic exercise but as a safeguard of community ethics, emphasizing the importance of fair play in times of need.

Residents who believe they are victims of illegal price gouging are encouraged to retain receipts, invoices, or other proof and report their cases online or via phone. The Department of Consumer and Business Affairs (DCBA) has investigators actively monitoring prices and working with local prosecution teams to enforce compliance. This initiative aims to protect individuals displaced or affected by recent environmental disasters. For updates on evacuation orders and emergency resources, residents can visit lacounty.gov/emergency. Additional information on post-disaster consumer rights and support is available on the DCBA website.