The Los Angeles County Board of Supervisors unanimously approved a motion on Tuesday to raise the penalty for price gouging to a maximum of $50,000 per violation.
Under state law, price gouging—defined as charging more than 10% above pre-disaster prices—can result in up to one year in jail and a $10,000 fine. However, the board’s decision significantly increases the financial penalty in response to recent concerns.
Supervisor Lindsey Horvath, who introduced the motion, emphasized that price gouging laws are in place to limit excessive charges for goods, services, and rent. “Yet, there are bad actors who are taking advantage of this crisis,” she stated.
She highlighted the devastating impact of recent LA County wildfires, which destroyed over 16,000 structures—many of them homes—and displaced tens of thousands of residents. A study by Rent Brigade found thousands of potential price gouging violations within just 11 days of the fires, including in areas unaffected by the disaster.
Board Chair Kathryn Barger, who co-authored the motion, condemned the exploitation of vulnerable communities and described the increased penalty as a “bold action” to curb these abuses.
Additionally, the County Counsel has been authorized to explore legal action against price gouging and price-fixing software used by housing platforms.
Supervisor Holly Mitchell likened rent-fixing algorithms to historical redlining practices that prevented minorities from purchasing homes, calling them predatory.
In last week’s meeting, the county CEO was also tasked with drafting a request for major online housing platforms—including Redfin, Zillow, Apartments.com, Airbnb, and VRBO—to display a banner informing users about the county’s state of emergency and price gouging regulations.
The motion will remain in effect for the duration of the local emergency.
Source: Los Angeles County Board of Supervisors
