Price Gouging

Price Gouging Protections During the 2025 Fire Emergency

Following the January 7, 2025 regional fires, state and local laws prohibiting price gouging were in effect. The laws generally prohibit price increases during a state of emergency of more than 10%, in rental housing, hotel, motel, and short-term rental rates, and consumer goods and services.

The Los Angeles County Board of Supervisors extended the protections of Penal Code Section 396(e) across all of LA County through May 28, 2026.

The City Attorney’s Office is investigating tips and complaints and will prosecute violations as appropriate.

If you believe you were a victim of price gouging or have any information about an incident of price gouging, please contact the Consumer Protection Unit of the City Attorney’s Office at Consumer.Mailbox@santamonica.gov or click here to file a complaint online.

For more information about the price gouging laws, please see the Frequently Asked Questions below.

FAQ

What is illegal price gouging for housing accommodations?

Generally, state law prohibits rent increases of more than 10% to existing or prospective tenants while the emergency price gouging protections remain in place.

How long do the price gouging protections for housing accommodations remain in place?

The price gouging laws took effect January 7, 2025—the date of the Governor’s emergency declaration—and last until 30 days after the emergency is declared over, or until a date specified by the Governor or the City.

How much rent can be charged for an existing tenant while price gouging protections are in place?

Generally, tenants in a fixed-term (not month-to-month) lease cannot get a rent increase until their lease expires or becomes month-to-month. If a tenant is in a month-to-month lease and the unit is rent controlled, the rent cannot be increased beyond the amount allowed by the rent control law. If the unit is not rent controlled, the rent cannot be increased by more than 10%. If the unit is subject to a low income housing deed-restriction, the rent cannot be increased by more than 10% and cannot exceed the deed-restriction limits.

How much can be charged for a unit that was being offered for rent on January 7, 2025, before the emergency proclamation was issued?

For housing that was being offered for rent on January 7, 2025, the rent cannot exceed 10% above the most recent rental price offered before January 7, 2025.

How much can be charged for a unit that was not rented on January 7, 2025, but was rented or offered for rent at some point in the year before January 7, 2025?

For housing vacant on January 7, 2025 but rented, or offered for rent, in the year before January 7, 2025, the rent cannot exceed 10% above the most recent rental price offered before January 7, 2025.

How much can be charged for a unit that was not rented or offered for rent at all in the year before January 7, 2025?

For housing that was not rented or offered for rent in the one year prior to January 7, 2025, the rent cannot exceed 10% above 200% of the fair market rent amounts established by the Department of Housing and Urban Development. Fair market rents for Los Angeles County zip codes are available online at FY 2025 Fair Market Rent (FMRs) Documentation System — Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area

How much can be charged for a rent-controlled unit that becomes vacant while the protections remain in place?

For rent-controlled housing that becomes vacant during the period that price gouging protections remain in place and rented to a new tenant, the rent cannot exceed either 10% above the last rent charged or 10% above 160% of the fair market rent established by the Department of Housing and Urban Development, whichever amount is higher. Fair market rents for Los Angeles County zip codes are available online at FY 2025 Fair Market Rent (FMRs) Documentation System — Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area.

Can a landlord agree to a rent amount that is more than the legal limit if the applicant or tenant is the one who offers that amount?

No. The City of Santa Monica considers accepting an unlawful rent amount to be charging an unlawful rent amount. Penal Code Section 396 makes it unlawful for any person to advertise, offer, or charge a rental price that exceeds the amounts stated above.

What is illegal price gouging for hotels, motels, and short-term rentals?

California Penal Code Section 396 generally prohibits hotels, motels, and short-term rentals that rent on a daily basis from increasing, by more than 10%, their rates advertised immediately to January 7, 2025.

What is illegal price gouging for consumer goods?

California Penal Code Section 396 and Santa Monica Municipal Code Section 4.32.161 generally prohibit businesses from increasing, by more than 10%, the price for consumer goods and services, such as water, clothes, food, gasoline, building and construction materials, and emergency clean up services. However, a greater increase may be allowed if the person can prove the price was attributable to additional costs imposed by the supplier of goods, or due to additional costs of labor, in some cases.

Where can I report price gouging?

Please alert the Consumer Protection Unit of the City Attorney’s Office by emailing Consumer.Mailbox@santamonica.gov, or by submitting a complaint at www.smconsumer.org.

What are the penalties for illegal price gouging?

Violations of Penal Code Section 396 are subject to criminal prosecution that can result in one-year imprisonment in county jail and/or a fine of up to $10,000. Violations are also subject to civil enforcement actions by public prosecutors and private individuals, including civil penalties of up to $2,500 per violation, injunctive relief and mandatory restitution.