Some businesses have raised prices during the wildfires
Historic wildfires have swept across Southern California, leading the governor to declare a state of emergency in Ventura and Los Angeles Counties. These fires have caused massive devastation, leading many people to flee their homes as they look for safety away from the fires. Recently, California Attorney General Xavier Becerra, Los Angeles County District Attorney Jackie Lacey and Ventura County District Attorney Gregory D. Totten issued a consumer alert regarding price gouging with relation to the wildfires.
This alert reminded all Californians that price gouging is illegal under California law during a state of emergency. The law protects people who have been impacted by an emergency, such as the wildfires, from illegal price hikes on housing, gas, food and other essential supplies. The three law enforcement officials encouraged anyone who noticed signs of price gouging to report it through the Attorney General’s website or by calling 1-800-952-5225.
As a general rule, California law prohibits anyone from charging a price that exceeds the price before a state of emergency by more than 10 percent. This law applies to anyone who sells food, emergency supplies, medical supplies, building materials, and gasoline. It also applies to repair and reconstruction services, transportation, freight and storage services, emergency cleanup services, hotel accommodations and rental housing, and freight and storage services. An example of price gouging may be if a gas station on the way out of a town impacted by the wildfires doubled its prices for gas once it realized that people were leaving the area and saw an opportunity to make money. Similarly, if a grocery store started charging more money for essential supplies, such as cases of bottled water, it could be charged with price gouging.
Price gouging is a misdemeanor offense that can result in up to one year imprisonment in county jail and/or a fine of up to $10,000. Anyone who violates the statute may also be sued in civil court, and could be held liable for up to $5,000 per violation, injunctive relief (forced to stop selling at that price) and mandatory restitution (paying back the extra money charged).
While price gouging is a serious offense, particularly given the heightened emotions involved during a state of emergency, there are potential defenses to the charge. As a skilled Los Angeles County criminal defense attorney can tell you, if the price of labor, goods or materials has increased, then it is not considered price gouging to raise prices accordingly. For example, if the cost of water has gone up due to water being used for fighting the fires, and you must raise the cost of your hotel accommodations as a result, then your Los Angeles County criminal defense attorney could use this as a defense to the charge of price gouging. However, you will want to make sure to have adequate documentation of the business necessity of raising prices prior to doing so, particularly if your locality or state is undergoing a state of emergency.
If you have been charged with price gouging or any other crime, you will need an experienced Los Angeles County criminal defense attorney to defend you. Contact the Chambers Law Firm today at 714-760-4088 or dchambers@clfca.com to schedule a free initial appointment and learn more about how we can help you.
