The State of California has extended the anti-price gouging law for the following counties:
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.
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Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. While KTS provides clients with information on legislative changes, our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Our legal alerts are provided on selected topics and should not be relied upon as a complete report of all new changes of local, state, and federal laws affecting property owners and managers. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our 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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