• November 12, 2021

During a Local Emergency, Businesses Must Comply with Price Gouging Laws

During a Local Emergency, Businesses Must Comply with Price Gouging Laws

During a Local Emergency, Businesses Must Comply with Price Gouging Laws 1000 575 Consumer & Business
Consumers impacted by Dominguez Channel Odor Event should report suspected improper overcharges

The Los Angeles County Board of Supervisors recently declared a local emergency as a result of the Dominguez Channel Odor Event. The Los Angeles County Department of Consumer and Business Affairs (DCBA) advises business owners and operators of hotels and other lodging that they must stay in compliance with state and Los Angeles County laws which protect consumers from price gouging.

In most circumstances, businesses may not increase the price of goods and services more than 10 percent for consumers impacted by an emergency. This prohibition also applies to hotel and motel rooms, rental housing, and short-term rentals. This price-gouging protection is currently in effect across all of Los Angeles County, not just the areas immediately impacted by the Dominguez Channel Odor Event.

If you believe you have been improperly overcharged for goods, services, or housing, keep your records and receipts, and file a price gouging complaint using DCBA’s “Stop Price Gouging” online reporting tool. You can visit stoppricegouging.dcba.lacounty.gov to get started. There, you can pinpoint the location of the incident and upload documents directly to DCBA’s investigators for follow-up. You can also reach DCBA by phone at (800) 593-8222.

DCBA advises business owners and operators of housing and lodging accommodations to maintain detailed records of pricing before, during, and after the declared emergency. Failure to comply with the California Price Gouging Law (Penal Code 396) can result in fines up to $10,000 or one year in jail, or both.

DCBA staff is monitoring listed prices of goods and services in surrounding communities and will work with local prosecuting agencies to further investigate reports of alleged price gouging.

Price gouging protections will remain in effect for 30 days after a declared emergency and can be renewed. Price-gouging protections for any contractor-related services are in effect for 180 days.

For more information about price gouging and other common consumer issues after a disaster, visit dcba.lacounty.gov/disasterready.

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