LA fires: Landlords could face penalties for price gouging

Thousands of people lost their homes in the deadly Palisades and Eaton fires that ravaged Los Angeles County. 

Now many are looking for housing, whether that be temporary or permanent. 

But due to the high demand for housing, some people are taking advantage of the situation and drastically increasing fees.

The state and city are investigating multiple cases of price gouging. 

"We're seeing folks who are trying to take advantage of the situation, exploit the vulnerability, prey on these individuals who have been displaced, who are looking for a home, who are desperate. There's a surge in demand because of the natural disaster, and they're taking advantage of that and violating the law in the process," California Attorney General Rob Bonta said on FOX 11. 

RELATED: DA Hochman cracking down on crime during LA fires

In California, Penal Code 396 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. 

RELATED: California fires: Why are rents spiking in Los Angeles?

"These are victims, these are people who are reeling and in pain. These are our fellow Californians. They deserve us. Deserve that we lift them up, not take advantage of them. Do not price gouge. Just because you can doesn't mean that you should. And it is illegal. You'll be held accountable and you'll be punished if you do so," Bonta added. 

On Sunday, Gov. Gavin Newsom signed an executive order to suspend permitting and review requirements under the California Environmental Quality Act and the California Coastal Act to allow fire victims to restore their homes and businesses faster.

Additionally, the order directs state agencies to identify additional permitting requirements, including provisions of the Building Code, that can safely be suspended or streamlined to accelerate rebuilding and make it more affordable. It also extends protections against price gouging on building materials, storage services, construction and other essential goods and services to Jan. 7, 2026 in Los Angeles County.

Residents who have been victimized or who suspect price gouging are urged to report it to the California Attorney General's Office at oag.ca.gov/report and/or LA City Attorney's Office at att.pricegougingtaskforce@lacity.org.

Bonta also announced the creation of the Disaster Relief Task Force and the launch of a website dedicated to its response OAG.ca.gov/LAFires.

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