Attorney General Bonta Opens Price Gouging Investigations, Deploys DOJ Disaster Relief Task Force in Southern California

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LOS ANGELES — California Attorney General Bonta today announced that the California Department of Justice (DOJ) has opened active investigations into price gouging as it continues to ramp up the deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited low-ball offers on property during the state of emergency. DOJ has been working diligently to tackle this unlawful and unscrupulous conduct since the state of emergency was declared on January 7, 2025, and to further those efforts, Attorney General Bonta today announced the creation of DOJ’s Disaster Relief Task Force and the launch of a website dedicated to its response: OAG.ca.gov/LAFires.

“Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal,” said Attorney General Bonta. “Over the past week, I have encouraged the public to submit complaints to local law enforcement or my office at oag.ca.gov/report or by calling our hotline at (800) 952-5225. The response has been overwhelming. Today, I can confirm that we are actively investigating multiple cases. Let there be no doubt that we will hold those accountable who are attempting to exploit Californians and profit from their pain.” 

The Disaster Relief Task Force is made up of a cross-functional team of professionals from DOJ’s law enforcement and legal divisions including the Division of Law Enforcement, Special Prosecutions Section, Cybercrime Section, and the Consumer Protection Section. The task force is working closely in partnership with local officials, local law enforcement and local prosecutors. DOJ has special agents actively in the field investigating leads that came directly from complaints sent to DOJ from victims and witnesses in the impacted areas.

DOJ also sent letters to trade associations and platforms for both short- and long-term rentals regarding price gouging regulations. The letters emphasized that these companies are expected to oversee their platforms and communicate with their members to ensure all listings adhere to the law. DOJ also sent similar letters to hotel chains, requesting they provide the office with additional information to ensure price gouging is not happening.

California law – specifically, Penal Code Section 396 – generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling 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. 

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.

TIPS FOR REPORTING PRICE GOUGING, SCAMS, FRAUD AND OTHER CRIMES:

• Visit oag.ca.gov/LAfires or call our hotline at: (800) 952-5225.
• Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), voicemails, and call records.
• Provide anything that shows what prices you were offered, when, and by whom.
• If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing. 
• Include first and last names of the realtors, listing agents, or business owners you spoke to. Be sure to include phone numbers, email addresses, home and business addresses, websites, social media accounts.
• Don’t leave out any information that can help us find and contact the business or landlord.

Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.