Yes, Price Gouging During LA Fires Is Illegal — and Here's How You Can Report It

Updated 9:20 a.m. Friday

The devastating wildfires continuing to rage through Los Angeles County have claimed at least 10 lives so far according to officials, destroyed over 9,000 buildings and forced around 180,000 people to flee their homes under mandatory evacuation orders.

And as a huge number of people displaced by the Palisades, Eaton, Hurst, Lidia and Sunset fires now try to meet their basic needs — including shelter, food and water, medical supplies and gasoline — California Attorney General Rob Bonta has issued a reminder that price gouging during disasters like this remains illegal in California.

Jump straight to:

• What counts as price gouging?
• How can I report price gouging during the L.A. fires?

California defines price gouging as when sellers try “to take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services.” During the L.A. wildfires, this might look like hotels charging more than their usual rates for evacuees seeking a room or a grocery market, hugely increasing the price of bottled water.

The state’s Department of Justice is now urging people to report any examples of price gouging they see and warns that sellers found to be violating this law can be prosecuted, fined and imprisoned. So if you’re an L.A. County resident who’s been forced to evacuate their home right now — or you have loved ones in the region you want to ensure aren’t being taken advantage of — keep reading for what you need to know about spotting price gouging, and how to report it.

When do price gouging laws come into effect?

The state’s law against price gouging under Penal Code Section 396 kicks in when a statewide or local state of emergency is declared — which happened on Tuesday, as announced by Gov. Gavin Newsom.

These protections can last well beyond the initial outbreak of a disaster situation: The Office of the Attorney General says that they “generally apply for 30 days after a declaration of emergency, although for reconstruction services and emergency cleanup services, protections apply for 180 days after a declaration of emergency.”

L.A. County also has its own laws against price gouging, which similarly remain in effect for 30 days until after an emergency declaration (in this case, Feb. 6) and 180 days for contractor-related services.

What kind of price rise is considered ‘gouging’ under the law?

In a nutshell, sellers don’t have to be outright doubling their prices to be regarded as participating in price gouging. In fact, “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,” Bonta said.

That means if a local store owner was selling a case of bottled water for $10 before Jan. 7 but hiked the price to $13 on Jan. 8, that 30% price rise would generally be regarded as gouging.

And if a seller only began selling an item 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 Department of Justice said.

You can use an online tool like PercentageCalculator.net to calculate the percentage rise in the cost of an item.

Do price gouging laws only apply to L.A. County right now?

Actually, no — despite the state’s price gouging law being brought into effect by specific emergency declarations for individual disasters around California, these protections aren’t restricted to the city or county where that emergency is taking place.

As well as applying to L.A. County, the law “is intended to prevent price gouging elsewhere in the state where there is increased consumer demand as a result of the declared emergency,” the Office of the Attorney General said.

The specific example it gives: “If a fire in San Diego County causes residents to evacuate to neighboring Imperial County, hotels in Imperial County may not raise rates by more than 10% to take advantage of the increase in demand for lodging.”

What kinds of purchases do the price gouging laws apply to?

According to the Department of Justice, the price gouging law applies to people who sell food, emergency supplies, medical supplies, building materials, gasoline and hotel rooms.

But it also applies to:

• Repair or reconstruction services.
• Emergency cleanup services.
• Transportation.
• Freight and storage services.

You can see more examples of goods that are subject to the price gouging law. There are exceptions to the law, the Department of Justice said: “For example, [if] the price of labor, goods, or materials has increased for the business.”

Do price gouging laws cover rental properties?

Yes, and there are also specific protections around price gouging for rental housing, which apply to services like Airbnb and VRBO. For example, the law also prohibits a landlord from evicting a tenant and “then re-renting the property at a rate that the landlord would have been prohibited from charging the evicted tenant under the price gouging statute.”

Airbnb is currently partnering with 211 LA to offer free accommodation to people displaced by the fires in L.A., although 211 LA warns that due to high demand, you could be waiting a while to get a response. Apply for free accommodation through Airbnb and 211 LA here.

If I think I’ve been a victim of price gouging during the L.A. wildfires — or if I spot it in the wild — what can I do?

First, make sure you keep all your records and receipts — which may also include taking time-stamped photos of price labels if necessary. The Los Angeles County Department of Consumer and Business Affairs also recommends comparing those prices to pre-emergency declaration prices “and in areas not affected by the disaster.” You could use an online tool like PercentageCalculator.net to calculate the percentage rise in the cost of an item to see if you may indeed have been a victim of price gouging.

Then, Bonta urged anyone who spots or experiences price gouging to “immediately” file a complaint with the Office of the Attorney General at oag.ca.gov/report or by calling 800-952-5225. The online form requires giving your full contact details. You can also contact your local police department or sheriff’s office, Bonta said.

Sellers who are found to be violating California’s price gouging statute can be subject to criminal prosecution and could be imprisoned for one year 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 Department of Justice said.

You can also file a complaint to the Los Angeles County Department of Consumer and Business Affairs (DCBA) using their online complaint form or by phone at 800-593-8222.

Bear in mind that the attorney general’s office said it can’t give you legal advice or represent individuals, although it may “on behalf of the public” investigate or prosecute a person who’s been price gouging.

The attorney general’s office said that “if you believe that you might have a claim for price gouging, you might consider contacting an attorney to explore your options.” You can find a referral to a lawyer through the State Bar or find a free legal aid office near you.

A spokesperson for Bonta’s office could not comment on whether the Department of Justice had already received any complaints from the public about price gouging during the L.A. fires due to the possibility of eventual investigations.