and then it meets the definition of price gouging if the

Posted on: August 15, 2024 at 10:18:19 CT

sellers' costs have not also increased.

Here are FAQs on California's law:

https://oag.ca.gov/consumers/pricegougingduringdisasters#3C

What is price gouging?

Price gouging refers to sellers trying to take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services.

Is price gouging illegal in California?

Yes, in certain circumstances. California’s anti-price gouging statute, Penal Code Section 396, prohibits raising the price of many consumer goods and services by more than 10% after an emergency has been declared. For items or services a seller only started offering after an emergency is declared, the seller may not charge a price greater than 50% of what it cost the seller to provide the item or service.

Local laws may also contain their own prohibitions on price gouging.

When does California’s anti-price gouging statute apply?

Price gouging protections apply immediately after the President of the United States, the Governor of California, or a city or county executive officer declares a state of emergency. These protections generally apply for 30 days after a declaration of emergency, although for reconstruction services and emergency cleanup services, protections apply for 180 days after a declaration of emergency. The fact that an emergency is continuing does not, by itself, extend price gouging protections beyond their initial expiration, but state and local officials may extend price gouging protections beyond these timeframes by additional orders.

What goods and services are covered by the statute?

The statute applies to the following major necessities: lodging (including permanent or temporary rental housing, hotels, motels, and mobilehomes); food and drink (including food and drink for animals); emergency supplies such as water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers; and medical supplies such as prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.

It also applies to other goods and services including: home heating oil; building materials, including lumber, construction tools, and windows; transportation; freight; storage services; gasoline and other motor fuels; and repair and reconstruction services.