SUPERVISOR HORVATH TAKES ACTION TO COMBAT PRICE GOUGING AFTER DEVASTATING FIRES
LOS ANGELES, CA – In response to rampant price gouging in the wake of the Los Angeles County wildfires, Third District Supervisor Lindsey P. Horvath and Chair Kathryn Barger introduced a motion to increase penalties on price gouging, enhance enforcement, and prevent predatory rental pricing practices.
The recent wildfires destroyed thousands of homes, displacing families and exacerbating LA County’s already dire housing crisis. Reports of skyrocketing rent prices and landlords exploiting displaced residents have surfaced across the County, underscoring the urgent need for stronger protections against price gouging.
“After a disaster, no one in Los Angeles County should have to worry about being taken advantage of by predatory price gouging,” said Supervisor Lindsey P. Horvath. “The fires have already displaced thousands of Angelenos—we must act urgently to protect renters, homeowners, and small businesses from skyrocketing prices. LA County is strengthening measures to hold bad actors accountable and ensure that our communities can recover without the added burden of unfair housing practices.”
“Rental housing prices have skyrocketed because opportunists are preying on wildfire survivors when they are most vulnerable,” said Chair Kathryn Barger. “Price gouging is illegal and enforcement can be difficult, but I’m hopeful that increasing fines to the tune of $50,000 will stop this criminal activity in its tracks. Partnering with online rental platforms and applications to increase users’ awareness of price gouging laws will bring greater awareness and protect consumers. Accessible and affordable housing should not be a casualty of these wildfire disasters.”
The motion directs County Counsel to draft a resolution increasing the maximum civil penalty for price gouging violations to $50,000 per incident. It also initiates a report-back on legal options to address price-fixing practices, including rental algorithm software that artificially inflates housing prices.
Key provisions of the motion include:
- Expanding enforcement of LA County’s anti-price gouging laws.
- Initiating a report-back on the use of price-fixing software that raises rents through automated algorithms.
- Deploying Disaster Service Workers to assist in investigating price gouging complaints.
- Urging online housing platforms (such as Zillow, Redfin, and AirBnB) to display emergency notices and preserve rental price history for transparency.
The motion builds upon the Board’s previous emergency actions, including the establishment of a $32 million relief fund to support displaced residents, workers, and small businesses impacted by the fires.
The Supervisor recently joined California Attorney General Rob Bonta in announcing coordinated efforts at the local and state levels to ensure renters and consumers are protected from price gouging and other forms of exploitation.
