The state is creating a task force to attack the problem
A ConsumerAffairs report on Jan. 15 found that rent spikes were averaging 41% in areas affected by the Los Angeles wildfires. The state is responding with a task force aimed at tackling price gouging, fraud, scams and unsolicited low-ball property offers.
Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal,said California Attorney General Rob Bonta.Over the past week, I have encouraged the public to submit complaints to local law enforcement or my office atoag.ca.gov/reportor by calling our hotline at (800) 952-5225.The response has been overwhelming."
"Today, I can confirm that we are actively investigating multiple cases. Let there be no doubt that we will hold those accountable who are attempting to exploit Californians and profit from their pain, Bonta said in an email.
Bonta also announced the launch of a website to deal with price gouging and other violations.
DOJ has special agents actively in the field investigating leads that came directly from complaints sent to DOJ from victims and witnesses in the impacted areas.
DOJ also sent letters to tradeassociations and platforms for both short- and long-term rentals regardingprice gouging regulations. The letters emphasized that these companies are expected to oversee their platforms and communicate with their members to ensure all listings adhere to the law.
DOJ also sent similar letters to hotel chains, requesting they provide the office with additional information to ensure price gouging is not happening.
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.
Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000.
Low-ball property offers
Many homeowners have reported being approached by indviduals who make low-ball cash offers to buy the remains of their home and property for cash, with few conditions. Many of these offers turn out to be false when the individual can't produce the funds.
In nearly all cases, the offers are for a mere fraction of the actual value of the land and any remaining structures. Homeowners should use a Realtor, attorney or other professional to help them determinethe value of their property and structure a marketing plan.
They should also get a realistic estimate of the replacement cost of their home, itemize the expected payouts from insurance policies, FEMA and other potential sources and should be certain they know the balance, if any, on their mortgage and any other encumbrances that could slow down the sale of their property.
What to do
If you encounter attempted price-gouging or other violations, you can:
- Visitoag.ca.gov/LAfiresor call our hotline at: (800) 952-5225.
- Include screenshots of all correspondence including conversations, text messages, direct messages (DMs), voicemails, and call records.
- Provide anything that shows what prices you were offered, when, and by whom.
- If youre on a site like Zillow, you can also send screenshots of the price history and a link to the listing.
- Includefirst 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 outany information that can help find and contact the business or landlord.
To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please seehere.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-16 19:02:00
