ppgaming Fil-Am attorney general cracks down on price gouging to protect victims of LA fires

Attorney General Rob Bonta vows to crack down on price gouging. FILE PHOTO (AP Photo/Marcio Jose Sanchez)

LOS ANGELES – California Attorney General Rob Bonta is leading efforts to open multiple predatory pricing investigations into fraud, assorted price-gouging scams and unsolicited low-ball offers on property during the current state of emergency in Los Angeles County.

Bonta announced Thursday that law enforcement has been  working to tackle “this unlawful and unscrupulous conduct” since the emergency was declared on Jan. 7.

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The Filipino American attorney general also announced the creation of the Disaster Relief Task Force and the launch of a website dedicated to its response.

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“Preying on people during such a vulnerable time is not just fundamentally wrong, it is illegal,” Bonta said in a statement.

“Over the past week, I have encouraged the public to submit complaints to local law enforcement or my office. 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.”

The Disaster Relief Task Force is made up of a team of professionals from state law enforcement and legal divisions including the Division of Law Enforcement, Special Prosecutions Section, Cybercrime Section and the Consumer Protection Section, as well as local law enforcement, Bonta said.

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The California Department of Justice (DOJ) also has special agents actively in the field investigating leads that came directly from complaints from victims and witnesses in the impacted areas.

DOJ has sent letters to trade associations and platforms for both short- and long-term rentals regarding price-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.

The federal and state governments’ tax revenue reached a total of 86.2 billion euros ($93.54 billion) last month, according to the ministry’s monthly report.

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DOJ also sent similar letters to hotel chains, requesting they provide the office with additional information to ensure price gouging is not happening, the agency said.

California law generally prohibits charging a price that exceeds by more than 10 percent 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 percent.

The law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline.

It 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.

To report suspected predatory pricing, go to oag.ca.gov/LAfires or call 800-952-5225. (With CNS report)

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