California Attorney General Rob Bonta announced aggressive measures to combat price gouging in Los Angeles County following devastating wildfires that displaced thousands of residents last week.
The Attorney General's office has launched multiple investigations into reports of businesses dramatically hiking prices during the ongoing state of emergency declared on January 7. Hotels, rental properties, and other services have allegedly been charging excessive rates, taking advantage of displaced residents seeking temporary housing.
"Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal," Bonta stated during Thursday's announcement.
In response, Bonta has established a dedicated Disaster Relief Task Force comprising state law enforcement officials, legal divisions, and local law enforcement. The task force will investigate complaints and enforce California's anti-price gouging laws.
Under state law, businesses cannot increase prices by more than 10% compared to pre-emergency rates. For new items introduced after the emergency declaration, prices cannot exceed 50% above the seller's costs. These restrictions apply to essential goods and services including housing, food, emergency supplies, and reconstruction services.
The Department of Justice has already taken proactive steps by sending warning letters to trade associations, rental platforms, and hotel chains reminding them of their legal obligations during the emergency period.
The housing crisis has particularly intensified as thousands of fire victims compete for limited available units in an already strained market. Local real estate professionals report numerous families struggling to secure housing amid surging demand and prices.
"As the housing market gets smaller because of the fires, rent prices are going up because they can," noted Trevor Williams, an LA Arts District resident affected by the situation.
Residents can report suspected price gouging by calling 800-952-5225 or visiting the newly launched website OAG.ca.gov/LAFires. The Attorney General's office encourages providing detailed documentation including screenshots, correspondence, and price information when filing complaints.
The task force will continue monitoring the situation and investigating reports as the region works to recover from the wildfire emergency.