State Attorney General Investigates Price Surcharging

By Rachel Lampert

Since the devastation of the recent Southern California fires which have burned around 40,000 acres. Has seen tragic losses from all over the state itself. CAL Matters – Jeremia Kimelman and John Osborn D’Agostino report. “The fires sweeping across Los Angeles County for the past week have burned more than 40,000 acres, an area roughly equivalent to 1,800 Alcatraz Islands or 400 Disneylands, or slightly larger than Washington, D.C.”

That being said these wildfires have had harmful outcomes and therefore some businesses are taking advantage of those with low income. California State Prosecutor – Rob Bonta claims he and his team are working diligently to do everything in their power to tackle the price-gouging. He says these businesses or individuals held accountable are “… seeking to re-victimize the victims of the fires.” Since there are new accusations being constantly brought up daily where there have been prices being inflated. Rent for instance has increased more than 7%. There are laws put in place as this is highly illegal. Governor Gavin Newsom has implemented this as it was issued recently on Jan. 16 2025 which is supposed to prohibit rent increasing by 10% through March 8, 2025. Mike Nemeth – CAA Marketing and Communications Director says. “Under Penal Code Section 396, rent increases of more than 10% are prohibited in jurisdictions named in the emergency proclamation and areas experiencing heightened housing demand resulting from the emergency. Violators could face up to a year in county jail, fines up to $10,000, or both, along with civil penalties.”

Steps you can take to prepare a case are crucial. Remember to save all information from the real estate agent, landlord’s name, and other contact information you have about the property itself. Your text messages, photos such as screenshots, and documents that you had signed or received as well. Another piece of advice is to send these links or information altogether to prosecutors. This is against the law and those responsible could be charged up to $10,000.

References:

Kimelman, J., & D’Agostino, J. O. (2025, January 13). California wildfires map: How big are the LA fires? Use this tool to overlay them atop where you live. CalMatters. https://calmatters.org/environment/wildfires/2025/01/la-fires-size-mapped/

Nemeth, M. (2025, January 16). Governor extends protections against rent-gouging tied to L.A. firestorms. California Apartment Association. https://caanet.org/governor-extends-protections-against-rent-gouging-tied-to-l-a-firestorms/

Wagner, D. (2025, January 16). California’s top prosecutor says he’s building cases against price-gouging landlords.LAist. https://laist.com/news/housing-homelessness/los-angeles-fires-price-gouging-rent-increases-bonta

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