California attorney general details efforts to prevent Los Angeles fire-related price gouging

With disasters come scammers and the Attorney General's Office is cracking down on price gouging to protect victims of the Los Angeles wildfires.  

As thousands remain evacuated from the Palisades and Eaton fires, looking for places to live, needing supplies and cleanup tools to reenter their homes, the Department of Justice has opened multiple investigations as it has received hundreds of reports of price gouging.

Attorney General Rob Bonta said at a Thursday news conference, "We're on the case and we will prosecute where laws have been broken." He also said a disaster relief task force has been created. He noted that those impacted by fires "are prayed upon by scam artists ... seeking to revictimize victims of the fires." 

With the Jan. 7 state of emergency declaration for the communities affected by the fires, California law does not permit pricing increases of more than 10% from before the emergency declaration, despite demand. 

"Demand be damned ... to be clear that includes housing, rentals, hotels, construction supplies and services, gas, water, emergency supplies – it's all set forth in penal code 396," Bonta said.  

In instances where a business only began selling an item after the emergency declaration, they cannot charge more than 50% greater than the cost of the item.

"Price gouging is a crime, punishable by a year in prison, by a $10,000 criminal fine per instance," Bonta said.

He said price-gouging laws extend beyond Los Angeles County where there is increased consumer demand as a result of the declared emergency. "You cannot exceed that 10% cap," he said.

Bonta cited the Los Angeles Times during the news conference, where it was reported that a two-bedroom rental jumped from $5,000 to $8,000. It was one of many price-gouging examples he mentioned.

A DOJ disaster relief task force has also been created to uncover, investigate and prosecute price gouging and other crimes targeting disaster victims.   

Bonta said they have redistributed and deployed resources into LA to tackle price gouging. "We have boots on the ground investigating as we speak, building criminal cases ..." 

Housing and short-term rental platforms are also involved. Bonta said Airbnb has blocked listing prices over 10% in impacted areas. 

Report price gouging 

It is recommended to save receipts, and gather proof of text conversations, voicemails, call records, and anything that shows prices offered and by whom.

• https://oag.ca.gov/LAFIRES 
• (800) 952-5225 

RELATED:  What resources are available to LA renters affected by wildfires? Some say more are needed.

--

Have a tip about the Southern California wildfires? Send it to CBS News Los Angeles and KCAL News.