State officials said that another seller has been charged with possibly overcharging people affected by the serious wildfires in Southern California.
On Tuesday, California Attorney General Rob Bonta stated that the state is charging an unnamed real estate agent. The agent is accused of trying to overcharge a family that had to leave their home because of the Eaton Fire in Los Angeles.
Bonta said that an investigation showed that after being forced to leave due to the Eaton fire, the family started looking for rental homes with their real estate agency and asked about renting a house in Glendale.
Prosecutors claim that the realtor offered the family a rented home in Glendale, but the rent was over 50% higher than what they paid before the fire.
California Governor Gavin Newsom has extended emergency rules that prevent prices from rising more than 10% in Los Angeles County until March 8, 2025. The rules affect both current tenants and new leases during the emergency time, as stated in the order.
“We should unite to help our neighbors during natural disasters instead of trying to profit from their suffering,” Bonta said in a news release. “Today’s charges show that the DOJ is serious about stopping price gouging.”
Cal Fire said that over 12,000 homes, businesses, and schools have been destroyed by the fires, forcing over 100,000 people to evacuate.
Bonta’s office said that to help Californians impacted by the Southern California wildfires, the Department of Justice (DOJ) is looking into and taking action against price gouging.
The DOJ has sent over 650 warning letters, and more are on the way for hotels and landlords accused of raising prices unfairly, Bonta said.
“This announcement is a serious warning to anyone trying to take advantage of those who have lost everything in the Southern California wildfires: We will keep fighting until price gouging stops,” Bonta said.
Bonta’s office stated that anyone who breaks the price gouging law could face criminal charges. If convicted, they may be sentenced to up to one year in county jail and/or fined up to $10,000.
Those found in violation of price gouging are also subject to civil enforcement measures, including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution.
Last week, Bonta’s office said another real estate agent was charged for price gouging. A couple tried to rent a home but were told the price went up by 38% after they submitted their application.
If you think you have been a victim of price gouging, please report it to your local officials or the Attorney General at oag.ca.gov/LAfires.
Leave a Comment