In addition, DOJ has sent more than 700 price gouging warning letters to hotels and landlords

LOS ANGELES — California Attorney General Rob Bonta today announced the filing of charges against a Southern California real estate agent and a landlord for price gouging a victim who was evacuated due to the Eaton Fire. This investigation began when a complaint was filed with the California Department of Justice (DOJ) after the victim took steps to rent a Hermosa Beach home after the Governor’s Emergency Order, which protects against price gouging, went into effect. The investigation revealed that after the Emergency Order was in place, the defendants increased the rental price by 36%, which exceeded the 10% limit laid out in Penal Code section 396. The charge carries a potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail. 

“The California Department of Justice remains focused on putting a stop to price gouging,” said Attorney General Bonta. “Following the devastating fires in Southern California, I have been urging the public to report price gouging to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. Today, we’ve announced price gouging charges against both a real estate agent and a landlord for price gouging in the wake of the Eaton Fire. DOJ will continue relentlessly pursuing those who are trying to capitalize off of the chaos and pain of Southern California’s natural disaster.”  

As part of Attorney General Bonta's work to protect Californians following the Southern California wildfires, DOJ has also sent more than 700 warning letters – and counting – to hotels and landlords who have been accused of price gouging. In addition, the office has more active criminal investigations into price gouging underway.
 
Working alongside our District Attorneys, City Attorneys, and other law enforcement partners, DOJ has opened active investigations into price gouging as it continues to ramp up deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited low-ball offers on property during the state of emergency. DOJ has been working diligently to tackle this unlawful and unscrupulous conduct since a state of emergency was declared on January 7, 2025, and to further those efforts, the launch of a website dedicated to its response: oag.ca.gov/LAFires.
 
California law – specifically, Penal Code section 396 – generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. 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%. 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 cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the statute.

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

1. Visit oag.ca.gov/LAfires or call our hotline at: (800) 952-5225.
2. Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails
3. Provide anything that shows what prices you were offered, when, and by whom.
4. If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing. 
5. Include first and last names of the realtors, listing agents, or business owners you spoke to. Be sure to include phone numbers, email addresses, home and business addresses, websites, social media accounts.
6. Don't leave out any information that can help us find and contact the business or landlord.

Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.

A copy of the complaint can be found here.