Price Gouging: What can you do to protect your community?
After disasters like the Eaton fire, communities rely on essential goods and services to recover—food, housing, medical supplies, and more. When businesses exploit these vulnerable times by inflating prices, it can have devastating consequences, particularly for those already struggling.
What is Price Gouging, and Why Should We Care?
Price gouging occurs during emergencies when prices for essential items—like rent, food, medical supplies, and repairs—are increased by more than 10%. This practice disproportionately impacts vulnerable populations, forcing them to choose between basic needs and financial stability. For families, seniors, and low-income individuals, price gouging can turn a difficult situation into a life-altering one.
Penalties for Price Gouging: Protecting the Community’s Well-Being
State and local laws impose serious penalties for price gouging, including fines up to $10,000, jail time, or both. These laws help ensure that everyone can access the necessities they need without facing financial ruin.
How Long Do Price Gouging Protections Last?
Price gouging protections typically last 30 days after an emergency declaration, but they can be extended if the emergency continues. For contractor services, like repairs, protections can last up to 180 days, preventing businesses and homeowners from being financially burdened during recovery.
How Price Gouging Affects Rental Housing
Rental price gouging becomes a significant issue after emergencies. In these cases, state law prevents landlords from raising rents by more than 10% on existing rentals. For new rentals, prices cannot exceed 160% of the HUD fair market value.
These protections help prevent residents from being forced out of their homes or burdened by excessive rent during a crisis.
How to Report Price Gouging
If you believe you have been a victim of price gouging, report it. Keep transaction records and receipts as evidence. To report price gouging, call (800) 593-8222 or visit dcba.lacounty.gov.
By staying informed, knowing your rights, and reporting violations, we can help protect our communities and ensure fair access to resources during emergencies.
See our Los Angeles Fire page for more information.
