Charges filed against real estate agent, landlord for price gouging wildfire evacuee
SoCal real estate agent charged with price gouging
A Southern California real estate agent and landlord has been charged with price gouging one of the victims of the Eaton Fire when they were looking to rent a place in Hermosa Beach.
LOS ANGELES - Charges were filed against a Southern California real estate agent and landlord for price gouging a victim who evacuated from the Eaton Fire in Altadena, officials announced.
According to the Attorney General's office, the victim filed a complaint with the California Department of Justice when they attempted to rent a Hermosa Beach home.
After the state issued an Emergency Order, the defendants increased the rental price by 36%, the complaint alleges.
Penal Code section 396 prohibits sellers from charging more than 10% for an item from its original price during a state of emergency. For items a seller only began selling after an emergency declaration, the law prohibits charging a price that exceeds more than 50%.
This applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline, as well as repair or reconstruction services, emergency cleanup services, hotel accommodations, and long- and short-term rental housing.
Organization looks to expose alleged rent gouging in LA County
According to a group of organizers, advocates, and researchers who call themselves the Rent Brigade, they identified more than 2800 cases where rents spiked significantly in January within days of the wildfires igniting. Tenant advocate and co-founder of Rent Brigade, Chelsea Kirk, spoke to FOX 11 about the problem of price gouging.
Officials say the only exception is if the price of labor, goods, or materials has increased for the business.
The charge carries a potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail.
PREVIOUS COVERAGE:
- Price gouging penalty increased to $50,000 following LA wildfires
- LA fires: Landlords could face penalties for price gouging
According to Attorney General Rob Bonta's office, the DOJ has sent more than 700 warning letters – and counting – to hotels and landlords who have been accused of price gouging.
Their office is also investigating several other criminal price gouing cases.
The public is encouraged to report price going to the state by visiting oag.ca.gov/report or by calling (800) 952-5225.
Tips for reporting price gouging, scams, fraud
The California Attorney General's Office has laid out the following steps.
- Report price gouging at oag.ca.gov/LAfires or call the hotline at: (800) 952-5225
- Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails
- Provide anything that shows what prices you were offered, when, and by whom.
- If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing.
- 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.
- Don't leave out any information that can help us find and contact the business or landlord.
CA wildfires: How to avoid price gouging on housing
Thousands of people across Southern California have been displaced from the wildfires, either from evacuating or losing their home. And now there are reports of landlords trying to take advantage of people who need housing with price gouging. Real estate agent Michael Vorobiev discusses the issue and gives tips to avoid falling victim.