Big Companies PRICE GOUGING After Tragic LA Fires?

California Attorney General Rob Bonta warns of price gouging and scams targeting wildfire victims in Los Angeles County.

At a Glance

  • Price gouging during wildfires is illegal, punishable by up to a year in jail and fines
  • Prices should not increase by more than 10% from pre-fire levels
  • Scams include fake aid organizations and fraudulent contractors
  • At least 20 arrests have been made related to looting
  • Officials advise verifying credentials and researching charities before donating

California Cracks Down on Price Gouging

As wildfires ravage Los Angeles County, California Attorney General Rob Bonta has issued a stern warning against those who might seek to profit from the disaster. With over 12,300 homes and buildings destroyed and at least 24 lives lost, the situation is dire for many residents. Bonta’s office has taken a strong stance against price gouging, a practice that exploits victims during their most vulnerable moments.

Under California law, it is illegal for businesses to raise prices by more than 10% for items sold before an emergency declaration. For items sold after the declaration, prices cannot exceed 50% of the seller’s cost. These restrictions apply to a wide range of essential goods and services, including food, emergency supplies, medical supplies, building materials, housing, and transportation.

“We’ve seen businesses and landlords jack up the price. It’s called price gouging. It is illegal. You cannot do it. It is a crime punishable by up to a year in jail and fines,” California Attorney General Rob Bonta said.

Scams Target Vulnerable Victims

Beyond price gouging, Bonta has also highlighted the prevalence of scams targeting wildfire victims. These fraudulent activities range from fake aid organizations to unscrupulous contractors seeking to exploit those in need of repairs.

One such example is a fraudulent entity calling itself “The American Red Cross of California,” which Bonta specifically warned against.

“Unfortunately, we have seen before that emergencies like this, in addition to bringing out the best in so many, also bring out bad actors who seek to use the trauma, the chaos of moments like this for their own gain. They see an opportunity to prey and take advantage,” Bonta warned.

To protect themselves, residents are advised to verify the credentials of contractors, adjusters, or government officials. It’s also recommended to avoid upfront payments and to monitor financial accounts for suspicious activities.