In the aftermath of the devastating wind and firestorm emergencies that have forced thousands of Los Angeles County residents to evacuate their homes, the Los Angeles County Department of Consumer and Business Affairs (DCBA) is warning businesses against illegal price gouging and urges the public to report suspected violations.
Price gouging during a declared emergency is a serious offense, prohibited under California Price Gouging Law (Penal Code 396). The law forbids businesses from raising prices on essential goods and services, including hotel rooms, rental housing, and emergency supplies, by more than 10 percent during an emergency.
During this ongoing wildfire situation, we would like to remind you that California Penal Code section 396 (PEN 396) prevents rental prices from being increased by more than 10% during a state of emergency declaration. Failure to follow PEN 396 is considered price gouging and CRMLS does not support any instances of it.
“Los Angeles County residents should not have to be burdened with price hikes by unscrupulous businesses when they are already dealing with the disruption and stress of life-threatening emergencies,” said Rafael Carbajal, DCBA Director. “We stand ready to investigate reports of price gouging and to hold violators accountable.”
Price-gouging protections remain in effect for 30 days following an emergency declaration. For contractor-related services, protections extend up to 180 days. Business owners and operators must maintain detailed records of pricing before, during, and after the declared emergency. Failure to comply with price gouging laws can result in fines up to $10,000 or one year in jail, or both.
What Consumers Can Do
DCBA encourages residents to document suspected price gouging by retaining receipts, invoices, or other records. Consumers can report incidents:
- Online at stoppricegouging.dcba.lacounty.gov
- By phone at (800) 593-8222 to report details
DCBA investigators are actively monitoring prices in impacted communities and coordinating with local prosecutors to address alleged violations. Price gouging laws have been enforced in recent months during crises such as the Rancho Palos Verdes landslides, the Bridge Fire in the Angeles National Forest, and the Franklin Fire in Malibu and were recently reactivated after the Los Angeles County Board of Supervisors declared a local emergency due to the windstorm and critical fire events that have been unfolding across Los Angeles County since January 7.
