Attorney General Bonta Issues Consumer Alert on Price Gouging Following State of Emergency Declarations in Plumas, Butte, Lassen, and Alpine Counties Due to Wildfires
OAKLAND – California Attorney General Rob Bonta today issued a consumer alert following the Governor’s declaration of a state of emergency for Plumas County due to both the Dixie Fire and Fly Fire, Butte and Lassen counties due to the Dixie Fire, and Alpine County due to the Tamarack Fire. The fires collectively have destroyed homes, caused the evacuation of residents and damaged critical infrastructure. Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.
“In just a week’s time, our state has been hit with a second wave of devastating wildfires. During this difficult time, California’s price gouging laws are in effect to protect families from being overcharged for essential supplies,” said Attorney General Bonta. “I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint with our office online at oag.ca.gov/report, or to contact their local police department or sheriff’s office.”
California law generally prohibits charging a price that exceeds, by more than 10 percent, the price of an item before a state or local declaration of emergency. 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, transportation, 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.