L.A. County supports extending price-gouging bill

The Los Angeles County Board of Supervisors threw its support behind an assembly bill on Tuesday that would extend price-gouging protections on hotels, food and essential goods and services for the duration of an emergency declaration, an increase from the existing 30-day cap.

Assembly Bill 380, introduced by Assemblyman Mark González, D-Los Angeles, would require that price gouging protections remain in effect for the full duration of an emergency declaration.

A motion introduced by Supervisor Lindsey Horvath notes that the January wildfires displaced thousands of residents, and several anti price-gouging laws have been in effect since, with penalties set to a maximum of $50,000 per violation. The motion states that some investigations have found short-term rental companies listing units at significantly inflated prices, some increasing by over 50% compared to pre-disaster levels.

Board Chair Kathryn Barger abstained from voting on the motion, saying she was concerned it could negatively impact homeowners who rely on rental income.

The California Department of Justice has issued warnings to more than 200 hotels and landlords for alleged violations, according to the motion.

"Current law imposes a 30-day cap on price gouging protections for hotels, food, and other emergency services, which fails to account for the prolonged recovery periods following large-scale disasters," the motion reads. "The recent wildfires underscore the necessity for robust consumer protection laws that extend price gouging protections for essential goods and services beyond arbitrary time limits."

In a statement, Horvath said, "Because of our housing crisis, we must do everything to keep people in their homes. People who are temporarily without work don't deserve additional punishment, they need our support."

Barger argued that existing laws against price gouging were already helping protect rental rights.

Homeowners who spoke during the board meeting echoed Barger's comments on the bill potentially negatively impacting those who rely on rental properties for a living.

To report price gouging for goods, services or housing, keep records and receipts. People can file a price gouging complaint online, by phone at 800-593-8222 or email info@dcba.lacounty.gov

Current or prospective renters who believe they have been victims of rental housing price gouging should also report it to the California Attorney General at oag.ca.gov/report. 

Additional reporting by City News Service.