California Attorney General Rob Bonta issued a consumer alert following the Gov. Gavin Newsom’s emergency declaration in response to powerful winter storms that struck over th weekend, with more rain and wind on tap.
A series of atmospheric rivers brought high-intensity rainfall and strong winds, heightening the risk of rapidly rising creeks and rivers, flooding, landslides, and debris flows.
Bonta’s alert reminds consumers and businesses that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who believe they have been the victim of price gouging should can it to their local authorities or to the Attorney General office online.
California law generally prohibits charging a price that exceeds the price a seller charged for an item before a state or local declaration of emergency by more than 10%. 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%.
The law applies to those who sell food, emergency supplies, medical supplies, building materials and fuel. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations and rental housing.
Violations of the price gouging statute are misdemeanors subject to prosecution. They can also result in civil enforcement actions, including civil penalties of up to $2,500 per violation, injunctive relief and restitution.
Topics California
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