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Published on January 28, 2025
Los Angeles County Realtor Charged With Price Gouging Amid Southern California Wildfire CrisisSource: Utah Reps, Public domain, via Wikimedia Commons

In light of the recent wildfires tearing through Southern California, state Attorney General Rob Bonta is cracking down on opportunistic pricing, charging a Los Angeles County realtor with price gouging. The realtor, whose name has been withheld, was caught proposing a rental rate to wildfire victims that exceeded 50% above the rent prior to the disasters, a violation of the cap stipulated after Gov. Gavin Newsom's emergency declaration, which limits increases to 10%. According to KTLA, Bonta emphasized the duty to support neighbors in crisis rather than exploit their vulnerability, stating, "Today’s charges are another example of DOJ’s commitment to put an end to price gouging."

KTLA's report notes that this incident is not isolated, with another realtor facing similar charges last week, and over 650 warning letters having been sent to landlords and hotels involved in alleged illegal price hikes. While Bonta's message seems clear, expressed through a determined stance that price gouging will not be tolerated, more than 650 such businesses have been warned and are under scrutiny by the state DOJ. Bonta conveyed a stern warning to potential violators: "May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California’s wildfires: We won’t stop until the price gouging does."

Further reports from the California Attorney General’s Office reveal an active enforcement environment, with several open investigations into price gouging following the Eaton fire disaster. The DOJ is actively investigating and prosecuting those taking advantage of the situation by sending out hundreds of warning letters to accused parties. Information posted on the Attorney General's website indicates ongoing efforts to work with local District Attorneys and other law enforcement partners to prevent further exploitation during the state of emergency declared on earlier this month.

For those looking to report suspected price gouging or related fraudulent activities, the DOJ encourages Californians to visit their dedicated website oag.ca.gov/LAFires, or call their hotline at (800) 952-5225, providing detailed information on their encounters including screenshots and price listings, "Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails," as per the Attorney General's instructions. In addition, the law provides a criminal pathway with penalties such as one-year imprisonment or fines up to $10,000 and civil enforcement for violations of price gouging statutes.