California Attorney General Rob Bonta has issued over 200 warning letters to hotels and landlords suspected of price gouging during the recent Los Angeles wildfires emergency. The move is part of a broader state effort to protect wildfire survivors from fraud and exploitation.
The crackdown comes as officials at all levels try to shield victims from scams targeting fire victims. Insurance Commissioner Ricardo Lara and Los Angeles District Attorney Nathan Hochman recently announced a partnership to combat insurance-related scams.
Price gouging, which can result in one year of jail time and fines up to $10,000, is prohibited under California law after an emergency declaration. The state has set limits on rental housing prices, with rates capped at 160% of the fair market value for previously unrented properties.
The Department of Justice is investigating active price gouging complaints, and some landlords have already reduced their rates to comply with the laws. State officials urge residents to document all correspondence with landlords and businesses, including screenshots of listings and text messages.
As thousands of Los Angeles County residents seek temporary housing and begin navigating insurance claims following the devastating fires that began January 7, the anti-fraud initiative aims to provide relief to those affected by the emergency.
Source: https://smdp.com/business/bonta-sends-200-warnings-just-days-after-announcing-focus-on-wildfire-fraud