The Los Angeles County Board of Supervisors approved a motion to clarify and strengthen the county's ability to enforce price gouging laws during declared emergencies.
The motion by Supervisors Lindsey P. Horvath and Kathryn Barger comes in response to widespread reports of excessive price increases following devastating wildfires that prompted a countywide state of emergency on Jan. 7, 2025.
Under state and local law, price increases beyond 10% of pre-disaster rates for goods, services and housing are prohibited during an emergency. While the county and state have extended these protections through multiple executive orders and board actions, enforcement challenges remain.
"Families recovering from disaster shouldn't have to worry about illegal price hikes," Horvath said. "This motion gives us the authority to impose meaningful penalties, require restitution, and make sure businesses play by the rules."
Since January, the Department of Consumer and Business Affairs has received more than 3,800 complaints, the majority related to housing costs. More than 1,800 cease-and-desist letters have been issued, and over 230 cases referred to the Price Gouging Task Force. However, few civil or criminal cases have advanced due to the complexity and time required for litigation.
"When those same people are victimized again by unscrupulous businesses and individuals through illegal price gouging, it's a call for LA County to take action," said Rafael Carbajal, director of the LA County Department of Consumer and Business Affairs.
The motion directs County Counsel, in collaboration with the department, to return within 30 days with an urgency ordinance to strengthen enforcement. The ordinance would grant the department authority to issue administrative fines of up to $1,000 per violation and $500 for failure to comply with investigations.
It would also create a formal citation and appeals process, establish provisions for restitution to victims, allow escalating fines for repeat violations and disqualify violators from receiving county contracts.
The motion also launches a public awareness campaign to inform consumers and businesses about the county's enforcement authority and penalties for violations.
Edited by SMDP Staff