On January 7, 2025, Governor Gavin Newsom declared a state of emergency in Los Angeles County and Ventura County due to the significant destruction caused by the Palisades Fire. Under California Penal Code section 396, during a state of emergency it is unlawful for sellers to increase prices by more than 10% for essential items such as food, fuel, medical supplies, and lodging, unless justified by legitimate cost increases. Additionally, residents are protected against excessive rent hikes and unjust evictions during the emergency period. Violations of Penal Code section 396 are punishable by up to one year in jail and a fine of up to $10,000.
“Price gouging during an emergency is against the law and a vicious way of ripping off those who have already lost so much,” said District Attorney Erik Nasarenko. “We strongly encourage anyone who suspects price gouging to report it immediately to local law enforcement for a thorough investigation.”