California Attorney General Rob Bonta has announced that charges have been filed against a REALTOR® who allegedly attempted to price gouge a family who was evacuated due to the LA fires. The investigation was a result of complaints received by the California Department of Justice (DOJ).
According to a release, the investigation found that after being evacuated in the Eaton fire, the family began searching for rentals through their real estate agent and inquired about renting a Glendale home. The defendant, another Southern California real estate agent, offered the family a new price that exceeded the listing price by more than 50%, which is in excess of the 10% limit set by the state of emergency anti-price gouging laws.
“In the face of natural disaster, we should be coming together to help our neighbors, not attempting to profit off of their pain,” said Attorney General Bonta. “Today’s charges are another example of the DOJ’s commitment to put an end to price gouging.”
The release also noted that there are “several active investigations” and the California DOJ is “continuing to ramp up deployment” in Los Angeles to address these issues.
This is the second set of charges filed in terms of price-gouging, the first of which—announced on January 22—involved a couple attempting to rent a home and being price-gouged 38% by a real estate agent.
Bonta also noted that to date, his office has sent out more than 650 warning letters to hotels and landlords accused of price-gouging.
“May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California’s wildfires: We won’t stop until the price-gouging does,” Bonta concluded.
On Tuesday, the California Association of REALTORS® (C.A.R.) shared a release to “offer tips for members to share on navigating financial assistance, insurance and potential safeguards after the wildfires.”
The release explains the basics of the anti-price gouging laws that go into effect in a state of emergency, which California has declared and will last until March 8.
As stated in both the C.A.R. and Attorney General’s releases, violators of the price-gouging statute can face up to one year in jail and/or a fine of up to $10,000 if found guilty in a trial. Violators are also subject to civil enforcements, which can include penalties of up to $2,500 per violation.
To report any instance of price-gouging, scams, fraud or other crimes, visit oag.ca.gov/LAfires or call the hotline at (800) 952-5225.
