California Attorney General Rob Bonta announced Thursday that his office has opened multiple investigations into price gouging amid the Los Angeles fires, creating a new Disaster Relief Task Force to tackle what he called "unconscionable" exploitation of evacuees.
"Folks across the region are being preyed on by greedy businesses and landlords, scam artists, and predatory buyers looking to make a quick buck off their pain," Bonta said at a press conference. "They are seeking to re-victimize the victims of the fires, to exploit them in their vulnerable state."
Bonta’s announcement follows several days of warnings from law enforcement officials including the LA Sheriff and Los Angeles District Attorney that unscrupulous business owners and scammers will be held accountable for targeting fire victims.
When DA Nathan Hochman announced charges against several looters earlier this week, he said he would pursue scammers and price gougers with similar vigor.
California law prohibits sellers from raising prices by more than 10% of pre-emergency levels. For items put up for sale after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%. 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 long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.
The Department of Justice has deployed additional resources to Los Angeles County following the January 7 emergency declaration, with special agents actively investigating complaints in affected areas. The new task force combines professionals from DOJ's law enforcement and legal divisions, including cybercrime, consumer protection, and special prosecutions sections.
Bonta cited several examples of illegal price increases, including a two-bedroom rental that jumped from $5,000 to $8,000 and a Santa Monica home listed $15,000 above last year's price.
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 $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General, local district attorneys, and city prosecutors can enforce the statute
Bonta said there’s no legal or moral justification for price increases.
"Demand be damned, you must follow the law," Bonta said, addressing businesses directly. "You cannot jack up prices and take advantage of disaster victims, plain and simple."
Bonta also said companies that use automatic algorithmic pricing systems will be held to account if their systems break the law.
"Algorithm or not, you're still responsible for price gouging on your platforms," he warned. "Turn off the algorithm, or closely monitor your prices so you don't find us knocking on your door."
The attorney general's office has sent warning letters to trade associations and platforms for both short- and long-term rentals. Bonta praised Airbnb for blocking listing increases above 10% in affected areas and displaying consumer alerts to hosts in Los Angeles and Ventura counties.
Beyond housing, the task force is also investigating predatory buyers making unsolicited low-ball offers on fire-damaged properties, as well as various scams targeting evacuees. These include fraudulent contractors demanding large upfront deposits and fake charities soliciting donations.
"We have boots on the ground conducting investigations as we speak, building the criminal cases against price gougers," Bonta said. "Don't think we're bluffing, and try to call it. You will regret it."
The announcement comes as Bonta noted personal connections to the crisis, mentioning that members of his own department have lost homes or been evacuated. "This hits close to home as a fellow Californian," he said, "someone who has called Los Angeles home in the past, who has a daughter who goes to college in Los Angeles County."
The Department of Justice has launched a dedicated website at OAG.ca.gov/LAFires for reporting violations and accessing resources. Residents can also report price gouging through the department's hotline at (800) 952-5225.
