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price gouging

Price gouging occurs when retailers or other sellers take advantage of the increased demand and insufficient supply of goods and services—often commodities and basic necessities—following a natural disaster, war, civil unrest, or other event, and increase prices beyond a fair or reasonable amount.

In California, price gouging is regulated under California Penal Code Section 396, which prohibits raising the price of many consumer goods and services by more than 10% after an emergency has been declared. This law applies to businesses and individuals and covers products like food, emergency supplies, medical supplies, building materials, housing, gasoline, and repair services. The statute is triggered by a declaration of a state of emergency by the President, the Governor of California, or a local official. The price protection can extend for up to 30 days after the declaration and may be extended if the emergency persists. Violations of this law can result in criminal prosecution, including imprisonment and/or a fine, as well as civil enforcement actions, including penalties and injunctive relief. It's important for retailers and other sellers to be aware of these regulations to avoid legal consequences during times of crisis.

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Consumers

price gouging

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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California State Code

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Consumers

price gouging

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