Attorney General Bonta Charges Second Los Angeles Realtor for Price Gouging Victims of Eaton Fire

DOJ has additionally sent more than 650 price gouging warning letters to hotels and landlords

Price gouging restrictions remain in effect through March 8, 2025

LOS ANGELES — California Attorney General Rob Bonta today announced the filing of charges against a real estate agent, alleging that she attempted to price gouge a family who was evacuated due to the Los Angeles Eaton Fire. This investigation was the result of review of complaints received by the California Department of Justice (DOJ). The investigation revealed 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 laid out in Penal Code section 396 while the Governor’s Emergency Orders are in effect.

As part of Attorney General Bonta's work to protect Californians following the Southern California wildfires, DOJ continues to actively investigate and prosecute price gouging, and has sent more than 650 warning letters – and counting – to hotels and landlords who have been accused of price gouging. 

“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 DOJ's commitment to put an end to price gouging. I urge the public to report any such incidents to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. To date we have sent more than 650 warning letters, and continue to actively investigate and hold accountable those who disregard the law. 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.”
 
DOJ has opened several active investigations into price gouging as it continues to ramp up deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams, and unsolicited low-ball offers on property during the state of emergency. Working alongside our District Attorneys, City Attorneys, and other law enforcement partners, DOJ has been working diligently to tackle this unlawful conduct since a state of emergency was declared on January 7, 2025, and to further those efforts, the launch of a website dedicated to its response: oag.ca.gov/LAFires.
 
California law – specifically, Penal Code section 396 – generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and long- and short-term rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a maximum penalty of one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the statute.

TIPS FOR REPORTING PRICE GOUGING, SCAMS, FRAUD AND OTHER CRIMES:

• Visit oag.ca.gov/LAfires or call our hotline at: (800) 952-5225.
• Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), and voicemails
• Provide anything that shows what prices you were offered, when, and by whom.
• If you’re on a site like Zillow, you can also send screenshots of the price history and a link to the listing. 
• Include first and last names of the realtors, listing agents, or business owners you spoke to. Be sure to include phone numbers, email addresses, home and business addresses, websites, social media accounts.
• Don't leave out any information that can help us find and contact the business or landlord.

Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please see here.

It is important to note that criminal charges must be proven in a court of law. Every defendant is presumed innocent until proven guilty.

A copy of the complaint can be found here.