California Fires Result In Price Gouging Restrictions; Storage Services Specified

California Attorney General Rob Bonta has issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Plumas County due to the Gold Complex Fire, and in Butte and Tehama Counties due to the Park Fire. The fires have together burned more than 181,000 acres, forcing the evacuation of thousands of residents, destroying homes, and threatening critical infrastructure.

In the alert, Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here. 

“As the Gold Complex and Park Fires force evacuations across Plumas, Butte, and Tehama Counties, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more,” said Attorney General Bonta. “ I urge all Californians to listen to communication from officials, lend a helping hand where they can, and report price gouging when they see it.” 

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before a state or local declaration of emergency. For any item 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%. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, certain transportation services, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute. 

For additional information, please see DOJ's FAQs on price gouging here.