Los Angeles real estate agent charged with price-gouging family evacuated in Eaton Fire
California Attorney General Rob Bonta announced Monday a Los Angeles-area real estate agent is being charged with price-gouging, accused of trying to rent a home in Glendale for 50% more than the listing price to a family evacuated in the Eaton Fire.
The disastrous wildfire, one of two which killed 28 people in LA County this month, led to the displacement of thousands of people who lost their homes or still aren't able to return due to unsafe conditions like poor air quality and toxic debris. Bonta has warned local businesses, including those in the real estate market, against price-gouging in the aftermath of the devastating fires.
Under state law, businesses are barred against raising prices by more than 10% during a state of emergency. Gov. Gavin Newsom declared a state of emergency in Los Angeles County for the Palisades and Eaton fires this month.
Those restrictions on price rates remain in effect until March 8.
One family evacuated in the deadly Eaton Fire faced a considerably higher rental price than what was listed — 50% more, according to Bonta's office. It reflects something affordable housing advocates have warned about, and state and local officials have said they're trying to prevent: rental prices being hiked by agents allegedly trying to profit off those in urgent need of housing.
Several news outlets have reported on rental prices quickly going up in the greater LA area, such as a Bel Air listing which nearly doubled from $15,900 a month in September to $29,500 in the days after the fires started, according to LAist.
Bonta has sent 650 warning letters to businesses accused of price-gouging so far, according to a statement from his office.
"In the face of natural disaster, we should be coming together to help our neighbors, not attempting to profit off of their pain," Bonta said in the statement announcing the charge. "May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California's wildfires: We won't stop until the price gouging does."
Last week, another real estate agent was charged in connection with alleged price gouging against a couple trying to rent after losing their home in the Eaton Fire. Bonta has urged people to report any alleged incidences of price-gouging to state authorities.
Such reports can be made to the California Department of Justice by calling the hotline at 800-952-5225 or visiting oag.ca.gov/report.
State authorities said there are several active investigations into price gouging as resources for the investigation and prosecution of these crimes are ramped up in the Los Angeles area, in the wake of the devastating wildfires this month.
"Price gouging is a crime, punishable by a year in prison, by a $10,000 criminal fine per instance," Bonta said earlier this month. "Demand be damned ... to be clear that includes housing, rentals, hotels, construction supplies and services..."
