California AG warns 200+ landlords, hotels of price gouging after California wildfires

Thousands of people are looking for places to live after their homes were destroyed by the Palisades and Eaton fires. In the wake of the fires, California Attorney General Rob Bonta said his office has warned more than 200 landlords and hotels accused of price gouging those looking for places to live.

The fires broke out on Jan. 7, and have since burned nearly 40,000 acres and destroyed more than 10,000 structures combined.

Gov. Gavin Newsom declared a state of emergency because of the fires that day. Since then, reports online have shown listings for apartments and rentals spiking, trying to take advantage of increased demand.

PREVIOUS COVERAGE: LA fires: Landlords could face penalties for price gouging

California Penal Code 396, though, prohibits the increase of prices on certain goods and services, including real estate, by 10% during a state of emergency. Any fees that have been increased by more than 10% are in violation of the law and could lead to prosecution, with penalties of up to one year in jail and a fine of up to $10,000. 

Since the state of emergency was declared, Bonta said his office has sent warning letters to more than 200 hotels and landlords who have been accused of price gouging.

""The price gouging that we’re seeing and hearing about needs to stop now," Bonta said.

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Real estate agent Michael Vorobiev spoke with FOX 11 earlier this week, saying in the days since the fires started he's seen a "considerable amount… a disturbing amount" of landlords jacking up prices.

"I started doing a basic search, and noticed that as of basically the 8th, which is I think a day after the State of Emergency was announced, everything was going up." 

Bonta's office recommended anyone who suspects a landlord or hotel of price gouging to report them to his office at oag.ca.gov/report or by calling the hotline at 800-952-5225.

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