L.A. County approves $50K penalty for price gouging during emergency

The Los Angeles County Board of Supervisors has approved a temporary increase to the existing penalty for those found guilty of price gouging, raising the maximum civil fine from $10,000 to $50,000 for each violation.

The motion was approved during the Board’s regularly scheduled meeting on Tuesday.

Supervisor Lindsey Horvath said the increase in civil penalties was drafted with the goal of protecting renters and consumers from exploitative practices, particularly during “times of crisis.”

“When disaster strikes, no one should have to worry about being taken advantage of by price gouging,” Horvath said in a news release. “The Board’s action today strengthens protections for renters and small business owners throughout the County, ensuring that the consequences for illegal price hikes match the harm they cause.”

The increased penalties went into effect immediately countywide as part of the local emergency declaration related to January’s fires. The maximum penalty of $50,000 will remain in place for the duration of the emergency declaration, officials said.

In the wake of deadly and devastating wildfires in Los Angeles County, authorities have received “widespread reports” of rental price gouging and overpricing of essential goods.

While the Board says price gouging laws can be difficult to enforce, Chair Kathryn Barger said she hopes the increase in penalties, as well as bringing awareness to the existing laws, will “stop this criminal activity in its tracks.”

“Accessible and affordable housing should not be a casualty of these wildfire disasters,” Barger said.

Last week, the Board of Supervisors passed another motion related to price gouging, including directing L.A. County departments to continue outreach efforts to residents and business owners about their rights and responsibilities under the enhanced consumer protection rules.

Victims of price gouging, including renters facing excessive rent increases, are urged to contact the California Attorney General’s Office or the Los Angeles Count Department of Consumer and Business Affairs at 800-593-8222.