Can You Be Charged with a Crime for Price Gouging During the COVID-19 Pandemic?

If you are increasing prices to take advantage of others in an emergency, you may be charged with price gouging.

Can You Be Charged with a Crime for Price Gouging During the COVID-19 Pandemic?

If you have been to the stores — or shopped online — in the past few weeks, you have likely noticed that many items are in low supply, or perhaps even impossible to purchase. Hand sanitizer, toilet paper, hand soap, flour, and yeast are just a few of the items that are hot commodities during the COVID-19 pandemic. People throughout California have had difficulty obtaining these and many other basics. If they can find these items, the prices may be astronomical.

California has declared a state of emergency in response to the coronavirus. As a result, a special law has gone into place that prohibits price gouging. According to a criminal defense attorney in Orange County, CA, price gouging happens when a seller attempts to take unfair advantage of consumers by greatly increasing prices for essential consumer goods and services during an emergency or a disaster.

Under this law, it is illegal to raise the price of many consumer goods and services by more than 10% after the government has declared a state of emergency — such as the one that currently exists due to COVID-19 in California. Counties and cities may also have their own regulations that prohibit price gouging. These laws come into effect after the President of the United States, the Governor of California, or a city or county executive declares a state of emergency.

All people and businesses within the state must comply with this law. Generally, it applies to lodging, food and drink, emergency supplies, gasoline, building materials and medications. It also applies to services such as repair and reconstruction services. It applies for 30 days after a state of emergency has been declared, but it may be extended based on the nature of the emergency. In the current situation, because the state of emergency is likely to last longer than 30 days, it is likely that the law against price gouging will be extended.

As a criminal defense attorney in Orange County, CA, price gouging is a misdemeanor offense. If you are charged with this crime, you could be sentenced to a prison term of up to 1 year, and/or a fine of up to $10,000. In addition, anyone who violates this law may also face civil penalties of up to $5,000 per offense and be required to pay restitution to alleged victims.

During a crisis, we all need to come together to ensure the health, safety and well-being of all Californians. Charing fair prices for goods and services is one way that we can do this.

However, there may be situations where a person is unfairly charged with price gouging — such as if they were selling an item at a price that is based on what they paid for it. In this situation, a criminal defense attorney in Orange County, CA may argue that there was no price gouging, but simply not selling at a loss. Depending on the facts of the specific case, there may be other defenses available to a charge of price gouging.

At the Chambers Law Firm, we represent Californians who have been charged with a range of criminal offenses. To learn more about how we can help you, reach out today at 714-760-4088 or dchambers@clfca.com.

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