Damage to structures is seen from a hilltop perspective in the aftermath of the Eaton Fire on Jan. 10, 2025, in Altadena, Calif. Jae C. Hong/AP
California Attorney General Rob Bonta filed charges on Wednesday against a local real estate agent for attempting to “price gouge” a couple who had lost their home in the Los Angeles Eaton Fire. The agent allegedly increased the rental price of a home by 38% after the couple applied to rent it.
Bonta’s office revealed that over 500 warning letters have been sent to hotels and landlords suspected of price gouging amid the ongoing wildfires in Los Angeles County. At least 28 people have died as multiple fires, driven by severe drought and strong winds, continue to devastate Southern California. Thousands of homes and structures have been destroyed, leaving many families displaced.
“As I have said repeatedly, price gouging must stop. Today, we are making good on our promise to hold price gougers accountable, with more to come,” said Bonta in a statement. “This announcement serves as a stern warning to those who seek to further victimize those who have already lost everything. The Department of Justice is aggressively pursuing those attempting to profit from others’ suffering.”
Price Gouging Violations
The complaint states that the couple applied to rent a home shortly after Governor Gavin Newsom declared a state of emergency in the aftermath of the fires. Upon submitting their rental application, they were informed that the price had jumped by 38%, prompting them to abandon the rental due to the unaffordable increase.
Under California law, prices for goods and services cannot rise by more than 10% following a state or local declaration of emergency. An analysis of data obtained by ABC News uncovered nearly 400 listings with suspicious price increases post-fire, suggesting widespread potential violations.
Only items sold after an emergency declaration can have their prices raised by up to 50%. Price gouging prohibitions will remain in place until at least March 8, 2025, under an executive order from Newsom.
Penalties for Price Gouging
According to Bonta’s office, those found guilty of price gouging could face up to one year in jail and/or a fine of up to $10,000. The attorney general urged the public to report any instances of price gouging directly to his office.
ABC News reached out to the real estate agent listed in the complaint, Mike Kobassi, for comment, but has not yet received a response.
As California continues to grapple with the fallout from the wildfires, authorities are intensifying efforts to prevent profiteering from the disaster and ensure that victims receive the support they need.
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