Does California have a price gouging law during emergencies?

What the Law Says

California’s price gouging law is found in Penal Code § 396 and applies automatically when a state of emergency is declared by the Governor or local officials.

The law prohibits raising the price of many essential goods and services by more than 10% above the price charged immediately before the emergency declaration. This includes items like food, water, fuel, housing, medical supplies, and transportation.

It applies for up to 30 days after the emergency declaration — though the Governor may extend it up to 180 days for housing-related gouging (e.g., rental accommodations). Violations are misdemeanors punishable by up to one year in county jail and/or a fine of up to $10,000 per violation.

The law also allows civil enforcement: the Attorney General or district attorneys may sue for civil penalties up to twice the amount of the unlawful overcharge, plus attorney’s fees and costs.

Statutory Text

No person shall, during a state of emergency, sell or offer to sell any consumer food or goods, goods or services used for emergency cleanup, emergency supplies, medical supplies, home heating oil, building materials, housing, transportation, freight, and storage services, or gasoline or other motor fuels for a price that exceeds, by more than 10 percent, the price charged by that person for those goods or services immediately prior to the proclamation or declaration of emergency.

— Penal Code § 396(a) — Price Gouging

Statutory Text

The prohibition provided in subdivision (a) shall apply for a period of 30 days following the proclamation or declaration of emergency, except that with respect to housing, the prohibition shall apply for a period not to exceed 180 days following the proclamation or declaration of emergency.

— Penal Code § 396(b) — Duration

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