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ICYMI: State Continues to Protect LA Firestorm Survivors From Price Gouging

Government and Politics

February 1, 2025

From: California Governor Gavin Newsom

What you need to know: Governor Newsom’s executive orders to extend price gouging prohibitions protect Los Angeles firestorm survivors.

Los Angeles, California - Protecting Los Angeles firestorm survivors from nefarious actors, Governor Gavin Newsom’s executive orders in January strengthen protections against exploitation.

Using the price-gouging protections triggered by the state of emergency and extended by  executive orders, the California Department of Justice (DOJ) has already filed two charges against real estate agents attempting to price gouge families that evacuated due to the Eaton Fire. The DOJ has sent more than 650 price gouging warning letters to hotels and landlords.

In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation. The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors. - Governor Gavin Newsom

Protecting survivors

One executive order extends provisions of California law that prohibit price gouging in Los Angeles County in building materials, storage services, construction, and other essential goods and services, to January 7, 2026. The other executive order extends protections against price gouging in hotels, motels, and rental housing to March 8, 2025. These laws generally prohibit charging a price that is more than a 10 percent increase in the price charged before the emergency.

“In the face of natural disaster, we should be coming together to help our neighbors, not attempting to profit off of their pain,” said Attorney General Rob Bonta. “I urge the public to report any such incidents to local authorities, or to my office at oag.ca.gov/report or by reaching out to our hotline at (800) 952-5225. May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California’s wildfires: We won’t stop until the price gouging does.”

Violators of the price gouging statute are subject to criminal prosecution that can result in a maximum penalty of one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local prosecutors can enforce the statute.

Report violations to the Office of the Attorney General here.

Speeding recovery 

This update adds to the Governor’s work to cut red tape, remove onerous permitting requirements, and help speed rebuilding and recovery from the Los Angeles firestorms. On January 12, Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses destroyed — suspending the California Environmental Quality Act (CEQA) and the California Coastal Act permitting requirements and review. 

Additional actions to aid in the rebuilding and recovery efforts include:

  • Providing tax relief to those impacted by the fires. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Additionally, the state extended the January 31, 2025, sales and use tax filing deadline for Los Angeles County taxpayers until April 30 — providing critical tax relief for businesses. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline.
  • Fast-tracking temporary housing and protecting tenants and homeowners. To help provide necessary shelter for those immediately impacted by the firestorms, the Governor issued an executive order to make it easier to streamline the construction of accessory dwelling units, allow for more temporary trailers and other housing, and suspend fees for mobile home parks. Governor Newsom also issued an executive order that prohibits landlords in Los Angeles County from evicting tenants for sharing their rental with survivors displaced by the Los Angeles-area firestorms. For homeowners, California has worked with five major lenders, as well as 270 financial institutions, to provide mortgage relief to their customers.
  • Mobilizing debris removal and cleanup. With an eye toward recovery, the Governor directed fast action on debris removal work and mitigating the potential for mudslides and flooding in areas burned. He also signed an executive order to allow expert federal hazmat crews to start cleaning up properties as a key step in getting people back to their properties safely. The Governor also issued an executive order to help mitigate the risk of mudslides and flooding and protect communities by hastening efforts to remove debris, bolster flood defenses, and stabilize hillsides in affected areas. 
  • Safeguarding survivors from price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. Report violations to the Office of the Attorney General here.
  • Directing immediate state relief. The Governor signed legislation providing over $2.5 billion to immediately support ongoing emergency response efforts and to jumpstart recovery efforts for Los Angeles. California quickly launched CA.gov/LAfires as a single hub of information and resources to support those impacted and bolsters in-person Disaster Recovery Centers.  
  • Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.
  • Protecting victims from real estate speculators. The Governor issued an executive order to protect firestorm victims from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.

Get help today

For those Californians impacted by the firestorms in Los Angeles, there are resources available. Californians can go to CA.gov/LAfires – a hub for information and resources from state, local and federal government.  

Individuals and business owners who sustained losses from wildfires in Los Angeles County can apply for disaster assistance:

If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service.