Price Gouging Deadlines Extended

May, 2018

The State of California has extended the anti-price gouging law for the following counties:

Northern California:

Lake 12/4/2018
Mendocino 12/4/2018
Napa 12/4/2018
Solano 12/4/2018
Sonoma 12/4/2018

Southern California:

Ventura 12/4/2018
Santa Barbara 12/4/2018
San Diego 6/7/2018

If a state of emergency is declared, and if the state of emergency results from an earthquake, flood, fire, riot, storm, or natural or manmade disaster, California Penal Code §396 generally prohibits price gouging (i.e. price increases of more than 10%) for rental housing (defined below) and consumer food items or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, transportation, freight, and storage services, or gasoline or other motor fuels for 30 days after the emergency is declared. The price gouging restrictions may be extended for additional 30 day periods by state or local officials, boards or other governing bodies authorized to extend the restrictions. Price gouging restrictions affect both rent increases and vendor charges to a landlord after a natural disaster. Neither can exceed a 10% increase unless the seller can prove that the increased price is directly attributable to increases in the cost of labor or materials needed to provide the good or service.

An article with information about price gouging is available at http://clientportal.kts-law.com/resource_library/breg/documents/PriceGougingAfterNaturalDisasters-LimitationsonCaliforniaPostDisasterPriceIncreases.pdf.

Please contact any of our offices with questions or email us at info@kts-law.com.

Kimball, Tirey and St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This alert is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office.  If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers and Legal Articles, please consult the resource section of our website.

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