California AG Bonta warns consumers to watch for storm-related price gouging
SACRAMENTO – As multiple winter storms pound California with heavy amounts of rain and snow, along with damaging winds, Attorney General Rob Bonta alerted consumers to watch for illegal price gouging.
In a statement Thursday, Bonta reminded Californians that price gouging during a state of emergency is illegal. Earlier this week, Gov. Gavin Newsom issued a state of emergency ahead of a major atmospheric river storm that arrived in the Bay Area and Northern California on Wednesday.
Additional rounds of wet weather are expected Thursday and in the coming days across the state.
"As the state endures road closures, power outages, and other potential impacts, it's important that Californians take the necessary precautions to protect themselves and their families. It's also important that businesses not take advantage of the current demand for essential supplies," Bonta said. "With the Governor's declaration of a state of emergency, price gouging protections are in full effect."
Businesses prohibited from gouging include sellers of food, emergency supplies, medical supplies, building materials and gasoline. The law also applies to businesses offering repair or reconstruction services, emergency cleanup, hotels and rental housing, along with certain transportation services and freight and storage services.
According to Bonta's office, state law generally prohibits a seller charging a price that exceeds by more than 10% before a state or local emergency declaration. For items that a seller began selling after the emergency declaration takes effect, the law generally prohibits charging a price exceeding the seller's cost of the item by more than 50%.
Exceptions apply, such as when the price of labor, goods or materials has increased for the business.
Violators are subject to prosecution that can result in one year in county jail and / or a fine of up to $10,000. Businesses can also face civil penalties.
Bonta said anyone who may have been a victim of price gouging is asked to contact local authorities or to file a report with the Attorney General's Office at http://oag.ca.gov/report.