In a significant move to protect fire victims, California Attorney General Rob Bonta has announced charges against a real estate agent accused of price gouging a couple who lost their home in the devastating Los Angeles Eaton Fire. The charges come as part of a larger crackdown on unscrupulous businesses taking advantage of Californians during a declared state of emergency.
The investigation began after a complaint was filed with the California Department of Justice (DOJ), following the couple’s attempt to rent a home after the Governor’s Emergency Order went into effect. This order protects individuals affected by wildfires from illegal price hikes, including those related to housing rentals. The couple applied to rent a property, only to find the price had increased by 38% after their application was processed—well above the 10% increase limit set by California’s price gouging statute under Penal Code section 396.
“Price gouging must stop, and today we are making good on our promise to hold price gougers accountable,” Attorney General Bonta said. “This case serves as a stern warning to those who seek to further victimize those who have already lost so much. We will relentlessly pursue those who try to make a quick profit from the pain of others.”
As part of the ongoing effort to protect residents affected by the wildfires, the DOJ has already sent out over 500 warning letters to hotels and landlords accused of price gouging, with more criminal investigations currently underway.
Under California law, specifically Penal Code section 396, it is illegal to increase rental prices by more than 10% after a state of emergency is declared. Violators face criminal prosecution, which could include a fine of up to $10,000 and up to one year in county jail, as well as civil penalties of $2,500 per violation.
The case filed today is part of a larger effort by Bonta’s office to combat price gouging, fraud, scams, and other exploitative behaviors that often arise during times of crisis. Since the state of emergency was declared in January 2025, the DOJ has ramped up its resources in Los Angeles County, opening investigations into price gouging in the housing market, among other areas.
Attorney General Bonta emphasized the importance of community involvement in combating price gouging. “We urge Californians who believe they have been victims of price gouging to report it to local authorities or directly to my office,” he said. The public can report incidents online at oag.ca.gov/report or by calling the DOJ’s hotline at (800) 952-5225.
To further aid those affected by the wildfire, Bonta has launched a dedicated website at oag.ca.gov/LAFires, where residents can access information and resources related to the DOJ’s response to the crisis.
In a related effort, the Attorney General reminded landlords that rental bidding wars, which lead to unlawful price increases, are prohibited under the state’s price gouging law. Even if a potential tenant is willing to pay an inflated price, landlords cannot legally accept it.
“Price gouging in any form is unacceptable, especially when it impacts individuals who have already lost everything to a disaster,” Bonta said. “My office is committed to ensuring that our state’s price gouging protections are followed and respected.”
The charges against the real estate agent send a clear message that those attempting to exploit wildfire victims will be held accountable, with more investigations into price gouging and other fraudulent activities expected in the coming weeks.
