Wednesday, February 19, 2025

LA Supervisors Support Assembly Bill on Price-Gouging Extensions

CITY NEWS SERVICE

The Los Angeles County Board of Supervisors is throwing its support behind an Assembly bill Wednesday 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.

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.”

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

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.