Two displaced families allegedly charged over 30% more than pre-emergency rental rates
of ConsumerAffairs-
State announces criminal charges for post-wildfire rent spikes violating California's price gouging laws
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Two displaced families allegedly charged over 30% more than pre-emergency rental rates
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Offense carries up to a $10,000 fine and a potential 12-month jail sentence
California Attorney General Rob Bonta has filedcriminal charges against a Southern California real estate agent accused of price gouging two families who sought housing after being displaced by the Pacific Palisades Fire. The state Department of Justice (DOJ) investigation found that the agent raised rental prices by more than 30% in the aftermath of the firewell above the 10% limit allowed during a declared state of emergency under California Penal Code section 396.
These charges send a clear message: profiting off the suffering of Californians will not be tolerated, said Bonta. We are committed to holding accountable those who exploit vulnerable families in times of crisis.
Illegal rent hike in a time of crisis
According to the DOJ, the real estate agent increased rental rates significantly after an emergency order had been issued due to the Pacific Palisades Fire. These increases were applied to at least two families who ultimately signed leases at the inflated prices. Under California law, such actions are considered criminal when they exceed 10% above the pre-emergency pricing threshold.
Violators of section 396 can face a maximum fine of $10,000 and up to one year in county jail. Civil penalties including fines up to $2,500 per violation, restitution to victims, and injunctive relief may also apply.
The charges are part of a broader effort by the Attorney Generals office to curb illegal profiteering in the wake of natural disasters. Following recent wildfires in Southern California, the DOJ has issued over 750 warning letters to hotels, landlords, and other businesses suspected of engaging in price gouging.
Working with local prosecutors and law enforcement, the DOJ has opened multiple investigations targeting fraudulent schemes, unfair rental practices, and unethical real estate transactions during emergency declarations.
Californians urged to report price gouging
Attorney General Bonta encourages anyone who suspects they have been a victim of price gouging to report the incident. Reports can be submitted online at oag.ca.gov/LAfires or by calling the hotline at (800) 952-5225.
Tenants should include evidence such as:
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Screenshots of listings or conversations showing price increases
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Contact information of landlords or agents
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Documentation showing price history or prior rates
Your stories help us stop the exploitation and ensure fair treatment during emergencies, Bonta emphasized.
A copy of the criminal complaint is available here.
Posted: 2025-06-20 01:53:23
