SACRAMENTO February 28, 2019 – California Attorney General Xavier Becerra today issued a consumer alert following the Governor’s declaration of a state of emergency in counties across California due to severe winter storms causing flooding, mudslides, erosions, power outages, and infrastructure damage. The proclamation declared today, February 28, applies to the counties of Amador, Glenn, Lake, Mendocino, and Sonoma; and the proclamation declared on February 21 applies to the counties of Calaveras, El Dorado, Humboldt, Los Angeles, Marin, Mendocino, Modoc, Mono, Monterey, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Barbara, Santa Clara, Shasta, Tehama, Trinity, Ventura, and Yolo. Attorney General Becerra reminds all Californians that pr ice gouging during a state of emergency is illegal under Penal Code Section 396.
“Families throughout California are grappling with the significant damage caused by severe winter storms and atmospheric river storm systems. They should not have to worry about unscrupulous businesses trying to illegally cheat them out of fair prices,” said Attorney General Becerra. “California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies. I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint through my Office’s website or call (800) 952-5225, or to contact their local police department or sheriff’s office.”
California law generally prohibits charging a price that exceeds, by more than 10 percent, the price of an item before a state or local declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.
Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $5,000 per violation, injunctive relief and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.