County Moves to Strengthen Enforcement Against Price Gouging During Emergencies

County Moves to Strengthen Enforcement Against Price Gouging During Emergencies 1024 888 Supervisor Lindsey P. Horvath

LOS ANGELES COUNTY MOVES TO STRENGTHEN ENFORCEMENT AGAINST PRICE GOUGING DURING EMERGENCIES

July 15th, 2025

LOS ANGELES, CA – Today, the Los Angeles County Board of Supervisors approved a motion by Supervisors Lindsey P. Horvath and Kathryn Barger to clarify and strengthen the County’s ability to enforce price gouging laws during declared emergencies.

The action comes in response to widespread reports of excessive price increases following the devastating wildfires that prompted a Countywide State of Emergency on January 7, 2025. Under state and local law, price increases beyond 10% of pre-disaster rates for goods, services, and housing are prohibited during an emergency. While the County and State have extended these protections through multiple executive orders and Board actions, enforcement challenges remain.

“Families recovering from disaster shouldn’t have to worry about illegal price hikes. They should know their County is ready to step in and protect them,” said Supervisor Lindsey P. Horvath. “This motion gives us the authority to impose meaningful penalties, require restitution, and make sure businesses play by the rules. During an emergency, fairness and accountability are non-negotiable.”

“This motion takes direct aim at price gouging in Los Angeles County,” said Los Angeles County Board of Supervisors Chair Kathryn Barger. “We have a duty to hold those who exploit individuals and families during emergencies accountable. Strengthening our County’s enforcement tools ensures we can take swift action when violations occur. When disaster strikes, our residents deserve to know their government will protect them.”

Since January, the Department of Consumer and Business Affairs (DCBA) has received more than 3,800 complaints, the majority related to housing costs. More than 1,800 cease-and-desist letters have been issued, and over 230 cases referred to the Price Gouging Task Force. However, few civil or criminal cases have advanced due to the complexity and time required for litigation. This has left many residents vulnerable and created a perception that violations go unpunished, reducing the deterrent effect of existing laws.

“Far too many hard-working LA County residents have had to deal directly with the aftereffects of a major disaster, notably the recent wildfires. When those same people are victimized again by unscrupulous businesses and individuals through illegal price gouging, it’s a call for LA County to take action,” said Rafael Carbajal, Director of the LA County Department of Consumer and Business Affairs. “We thoroughly investigate all reports of suspected price gouging, and we thank the Board of Supervisors for giving us the tools we need to better protect our communities now and in the future. If you suspect price gouging, please report it to DCBA.”

This motion will:

  1. Direct County Counsel, in collaboration with DCBA, to return within 30 days with an urgency ordinance to strengthen enforcement under Los Angeles County Code Chapter 8.09 by:
  • Granting DCBA authority to issue administrative fines of up to $1,000 per violation and $500 for failure to comply with investigations.
  • Creating a formal citation and appeals process tailored to price gouging cases.
  • Establishing provisions for restitution to victims and prohibiting retaliation against those who report violations.
  • Allowing escalating fines for repeat violations and disqualifying violators from receiving County contracts.
  • Delegating authority to DCBA to negotiate settlements and proactively enforce the ordinance.
  • Including community-based partnerships to expand outreach and education.
  1. Launch a public awareness campaign in partnership with the Department of Economic Opportunity to inform consumers and businesses about the County’s enforcement authority, penalties for violations, and ways residents can report price gouging.

More Information
Read the full motion here.

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