Price gouging is an alarming example of merchants and landlords taking advantage of vulnerable Southern California residents in the aftermath of a declared emergency. The recent California wildfires have led to instances of price gouging, which is illegal. Learn your protections and rights in the face of wildfire price gouging, as well as when to contact a wildfire attorney.
What Is Price Gouging?
Price gouging is the act of drastically increasing the cost of consumer goods or services to a rate that is much higher than usual in times of emergency. This is a tactic used to maximize profits by taking advantage of people in vulnerable situations. Companies and landlords know that their goods and services are in high demand due to the state of emergency, and take advantage of this fact to raise prices to unfair levels.
The Southern California Housing Crisis and Wildfire Price Gouging
In the aftermath of recent wildfires in Southern California, an upsetting trend has been noticed by displaced residents and those searching for housing: price gouging in the local real estate and rental markets. Sudden rental price hikes that far exceed the 10-percent limit imposed by Governor Newsom have made it harder for displaced residents to find temporary and permanent housing.
California Laws Against Wildfire Price Gouging
California Penal Code Section 396 prohibits merchants from greatly increasing prices for essential goods and services during a declared state of emergency or local emergency. This law serves to protect consumers from “excessive and unjustified increases in the prices charged during or shortly after a declared state of emergency or local emergency for goods and services that are vital and necessary for the health, safety, and welfare of consumers.” Under this law, proof of excessive and unjustified increases in prices during or shortly after an emergency can result in criminal charges and penalties. A conviction can result in a misdemeanor punishable by imprisonment in county jail for up to one year and/or a fine of up to $10,000. California Attorney General Bonta has already announced charges against multiple real estate agents accused of price gouging on rental listings. The Attorney General recently issued a broad warning to landlords that the legislature is committed to ensuring that the state’s price-gouging law is followed and respected. This came after Governor Gavin Newsom’s Executive Order N-23-25, which extended the timeline of certain related protections from March 8 to July 1, 2025.
What Are Your Rights and Legal Options in the Face of Wildfire Price Gouging?
Unlawful price hikes in the real estate market can make it difficult for individuals and families displaced by wildfire disasters to find affordable housing. If you find yourself in this situation and suspect a landlord, property owner or real estate agent of price gouging in Southern California, take the following actions:
- Report it to the Attorney General’s office at oag.ca.gov/report or by calling (800) 952-5225.
- Report it to your local authorities by calling the police department’s nonemergency number.
- Keep records and documents showing evidence of price gouging after a wildfire.
- Contact a wildfire attorney in Southern California for legal advice and assistance with a potential lawsuit.
In a time when wildfire victims need sympathy, help and support, they may unfortunately encounter price gouging instead. This unlawful attempt to maximize profits can make it difficult for wildfire survivors in Southern California to find much-needed housing for their families while damaged properties are being repaired. If you find yourself in this situation, contact Bridgford, Gleason & Artinian for a free case evaluation with our wildfire attorneys. You may be eligible for financial compensation through legal action against one or more parties.