California AG warns people to report price gouging in wake of heat wave

Retailers are prohibited from raising the price on items needed during the heat wave, like fans.
Retailers are prohibited from raising the price on items needed during the heat wave, like fans. Photo credit Getty Images

SAN FRANCISCO (KCBS RADIO) – As the heat moves in, sales of fans are ramping up across the state.

But people shouldn't be concerned about getting gouged on the price of that fan thanks to a California law.

California Attorney General Rob Bonta issued a consumer alert on Thursday following Gov. Gavin Newsom's state of emergency declaration, reminding people that price gouging is illegal under Penal Code Section 396.

The state of emergency is for the weekend’s heat wave, which is likely to strain energy resources, forcing Californians to pick up extra things to keep themselves cool, like bottled water, fans and air conditioners.

"Going into Labor Day weekend, Californians across the state are bracing for brutal temperatures that will strain the electricity grid and threaten public health," said Bonta in Thursday's statement. "Many may seek to prepare by purchasing backup generators and air conditioning units. That's not an excuse for businesses to jack up their prices. The Governor has declared a state of emergency and price gouging protections are in effect. I urge all Californians to stay cool however they can and to report price gouging if they see it."

The law essentially places a cap on the price of an item that can't exceed more than 10% more of what the price is usually before the emergency was declared.

But for things that a seller only started selling after the emergency was declared, the price cannot exceed the cost of the item by more than 50%.

These types of items include food, emergency and medical supplies, building materials and gasoline, as well as critical services, like repair or reconstruction services, emergency cleanup services, certain transportation services, freight and storage services and temporary housing.

People caught gouging could case up to a year in county jail as well as a fine of up to $10,000. Civil penalties can also be applied of up to $2,500 per violation.

If a seller is found to be gouging prices, people are encouraged to gather as much information as possible and report it.

"So whatever county you live in in the San Francisco Bay Area," said Ted Asregadoo, spokesperson for the Contra Costa County District Attorney's Office. "Contact your local DA."

Most counties, like Contra Costa County, will have an email on their website where people can report their findings.

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Featured Image Photo Credit: Getty Images