Anti-Price Gauging Rules Now to Remain Until August 31st 

More, Possible Future Extensions May Be Imposed!

The state of emergency declared within Los Angeles County has once again been extended, now until August 31, 2025. The emergency declaration was originally set to expire on July 1^st, but because of motions initiated by Los Angeles County Supervisor Lindsey Horvath, the Supervisors extended the state of emergency first until July 31^st and now through August 31^st, and Ms. Horvath has indicated there may be further extensions.

• Under California law, price gouging protections apply immediately after the President of the United States, the Governor of California, or a city or county executive officer declares a state of emergency. These protections generally apply for 30 days after a declaration of emergency, although for reconstruction services and emergency cleanup services, protections apply for 180 days after a declaration of emergency.
• California’s anti-price gouging statute, Penal Code Section 396, generally prohibits increasing the price of many consumer goods and services, including rental housing, by more than 10% after an emergency has been declared.
• Also, generally, if the rental unit is new on the market after the declared state of emergency, the rental price cannot exceed 160% of the Fair Market Rent (FMR) established by the U.S. Department of Housing and Urban Development (HUD).
• However, if the seller or service provider, including providers of rental housing, can prove that the increased price is directly attributable to increases in the cost such as the labor or materials, renovation costs, etc. that are needed to provide the good or service, more may be charged.