California Bans Fuel Price Gouging in Wake of Wildfires
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California Attorney General Rob Bonta has warned price gouging for motor fuel, transportation, freight and other necessities is now illegal in Los Angeles and Ventura counties under the current state of emergency due to ongoing wildfires.
Bonta reminded the public it is now against the law in California for excessive and unjustified increases in the prices of gasoline or other motor fuels, transportation, freight, storage services, essential consumer food item/goods, goods/services used for emergency cleanup, emergency and medical supplies, home heating oil, building materials, animal boarding facilities, rental housing and hotels/motels.
“California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food and other essential supplies,” Bonta said. “If you see price gouging — or if you’ve been the victim of it — I encourage you to immediately file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office.”
On Jan. 7, Gov. Gavin Newsom declared a state of emergency in Los Angeles and Ventura counties due to the raging Palisades wildfires. According to state law, price gouging sanctions ordinarily take immediate effect for 30 days after the governor declares a state of emergency. But the current price gouging protection expiration dates vary:
• Los Angeles County — Expiring Feb. 6: price gouging on hotel and motel rates, residential rental prices and a moratorium on residential housing evictions. Expiring Jan. 7, 2026: price gouging for consumer necessities, motor fuels, transportation, freight, storage services and repairs, reconstruction and cleanup.
• Ventura County — Expiring Feb. 6: price gouging for consumer necessities, motor fuels, transportation, freight, storage services, hotel and motel rates, residential rental prices and a moratorium on residential housing evictions. Expiring Jan. 7, 2026: price gouging for repairs, reconstruction and cleanup.
California’s catastrophic multiple raging wildfires likely may force the emergency declarations and price gouging deadlines to be pushed further out.
Maui Measures
Hawaii Gov. Josh Green has extended his first Maui wildfires state-of-emergency proclamation 19 times.
First emergency proclamation: Aug 8, 2023
Nineteenth emergency proclamation: Dec. 6, 2024
Damages: $5.5 billion
Buildings burned: 2,200
Fatalites: 100
The state’s price gouging sanctions prohibit any person, contractor, business or other entity from selling or offering to sell goods or services at 10% or more above the price charged for those same goods/services immediately before an emergency declaration is issued or at a future date when it takes effect.
The only allowable greater price increases require proof the price hike is directly caused by extra costs incurred by a supplier or tied to higher costs of providing labor, materials or services during the actual emergency. However, those adjusted higher prices cannot be 10% greater than total seller costs plus the seller’s normal markup for that good/service.
Price gouging violators face criminal prosecution and penalties of one-year imprisonment in county jail and/or a maximum $10,000 fine. There also are civil penalties up to $2,500 per violation, injunctive relief and mandatory restitution.
Price gouging legal actions can be filed by local district attorneys, the state attorney general’s office or private individuals.
Meanwhile, other California wildfire relief includes assistance from state Insurance Commissioner Ricardo Lara. He issued a notice to public insurance adjusters reminding them of current laws about how and when to contact people affected by wildfires to protect survivors.
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“As Angelenos begin the challenging journey of recovery from these devastating fires, it’s crucial to take the time to carefully evaluate your options before hiring a public adjuster or contractor,” Lara said. “State law prohibits public adjusters from soliciting business in disaster areas for at least seven days, providing a buffer to protect residents from any high-pressure tactics, especially under such stressful circumstances.”
He said his department will support wildfire victims taking steps to determine how to recover with insurance matters to ensure they are protected and better able to make informed decisions.
Lara also issued declared an emergency for Los Angeles and Ventura counties Jan. 13 that “requires strict oversight of out-of-state adjusters being used to help handle the large volume of claims resulting from the Palisades, Eaton and several other fires.”
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People with questions about their insurance or seeking to file a complaint against a public adjuster can do so on the Department of Insurance’s website or calling (800) 927-4357.
“Claims must be paid fairly, quickly and completely to speed the recovery. My emergency declaration will help wildfire survivors so they are not being forced to wait for extended periods of time before receiving their benefits,” Lara noted. “I am doing everything in my power to streamline the recovery process during this unprecedented time, so that residents can begin putting their lives back together in the wake of these devastating wildfires.”
