Attorney General Bonta files charges against a Southern California real estate agent for price gouging Eaton fire victims State of California – Department of Justice

Additionally, the DOJ has sent 500 warning letters to hotels and landlords about price gouging

LOS ANGELES – California Attorney General Rob Bonta announced today that a real estate agent will be charged for attempting to extort prices from a couple who lost their home in the Eaton fire in Los Angeles. This investigation began when a complaint was filed with the California Department of Justice (DOJ) after the couple attempted to rent a home after the governor’s emergency order protecting fire victims from price gouging went into effect. As part of Attorney General Bonta’s work to protect Californians in the wake of the Southern California wildfires, the Justice Department has also sent 500 warning letters – and counting – to hotels and landlords accused of price gouging. In addition, the office has other active criminal investigations into price gouging.

“As I have said many times, price gouging must stop. Today we are making good on our promise to hold price gougers accountable, with more to come.” said Attorney General Bonta. “I have urged the public to report such incidents to local authorities, my office at oag.ca.gov/report or our hotline at (800) 952-5225. The response was amazing and we sent out 500 warnings. Today I am proud to announce that we have filed a price gouging lawsuit. May this announcement serve as a stern warning to those who would seek to further victimize those who have lost everything. The DOJ aggressively and relentlessly pursues those who seek to make quick money off the suffering of others.”

The investigation revealed that the couple had applied to rent a house. However, after receiving the application, they were informed that the price had increased by 38%. Due to the price increase, they decided not to rent the house. Because the price was increased beyond the 10 percent limit set by Section 396 of the Penal Code, a charge was filed that carries a maximum fine of $10,000 and the possibility of 12 months in prison.

Working with our district attorneys, state attorneys general, and other law enforcement partners, the DOJ has initiated active price gouging investigations while continuing to increase the use of resources in Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited price increases – ball offers the property during the state of emergency. The DOJ has worked diligently to combat this unlawful and unscrupulous behavior since the declaration of a state of emergency on January 7, 2025. To advance these efforts, a website dedicated to the response has been launched: oag.ca.gov/LAFires.

California law – specifically Penal Code Section 396 – generally prohibits charging a price that is more than 10% higher than the price charged by a seller for an item prior to a state or local exemption declaration. For items that a seller has only begun selling after a declaration of emergency, the law generally prohibits charging a price that exceeds the seller’s cost for 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 cleaning services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. There are exceptions to this ban if, for example, the price of labor, goods or materials for the company has increased.

Violations of the price gouging law will be prosecuted and punishable by one year in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement action, including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The attorney general and local prosecutors can enforce the law.

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

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

Californians who believe they have been a victim of price gouging should report it to their local authorities or the Attorney General at oag.ca.gov/LAfires. A list of all price gouging restrictions currently in effect due to Governor’s proclamations can be found here.

A copy of the complaint can be found here Here.