Price Gouging during California's State of Emergency: Know Your Rights

Raising rent by over 10% in a state-of-emergency is illegal.

In the wake of the recent fires in Los Angeles, many residents have found themselves in challenging circumstances, from displacement to uncertainty about their housing. Amid these difficulties, reports of landlords raising rents by 25% or more have surfaced, raising the alarm and sparking important conversations about tenant rights during a state of emergency.

What is Price Gouging?

Price gouging refers to the act of raising the cost of essential goods and services to an unreasonable level during a state of emergency. In California, it is illegal to increase prices by more than 10% for essentials, including housing, once a state of emergency has been declared.

This law, under California Penal Code Section 396, aims to prevent profiteering during times when people are most vulnerable. Essential goods and services include housing, medical supplies, food, and other necessities.

How This Law Applies to Rent

During a state of emergency, rent increases are limited to 10% or less. This cap applies to:

• Monthly rent for existing tenants.

• Rent for new leases if the property was previously occupied.

Landlords who raise rents beyond this threshold during a state of emergency are violating the law and can face legal consequences. 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 district attorneys can enforce the statute.

What Can LA Tenants Do?

If you are a tenant experiencing an excessive rent increase during this time, here are some steps you can take:

1. Document Everything: Keep records of communication with your landlord, including any notices about rent increases.

2. Know the Emergency Declaration Timeline: Check the official start date of the state of emergency and confirm if it is still in effect.

3. Report Violations: Contact your local district attorney’s office or file a complaint with the California Department of Justice.

4. Seek Legal Advice: Tenant advocacy groups and legal aid organizations can provide guidance and support.

   
   

Local Resources for Tenants in Los Angeles

Here are some organizations and resources that can assist:

• Los Angeles Tenants Union (LATU): Offers support for tenants facing unfair practices. Visit their website for more information.

• Housing Rights Center (HRC): Provides free legal services and information for tenants in California. Call 800-477-5977 or visit www.housingrightscenter.org.

• California Attorney General’s Office: File a price gouging complaint directly through their online portal.

• Bet Tzedek Legal Services: A nonprofit offering free legal aid for tenants. Learn more at www.bettzedek.org.

• LA County Department of Consumer and Business Affairs: Assists with landlord-tenant disputes and provides price gouging information. Visit dcba.lacounty.gov or call 800-593-8222.

  
  

Why This Matters

Price-gouging laws exist to protect individuals and families from exploitation when resources are scarce or access to housing is disrupted. As we come together to recover from these fires, ensuring fair treatment for tenants is critical to fostering a resilient community.

Raising Awareness

If you or someone you know is facing an illegal rent increase, don’t stay silent. Share this information, report violations, and stand up for your rights. Together, we can ensure that all Angelenos have access to safe and fair housing, even in the most difficult times.