Price gouging: state of emergency.

Senators Umberg and Smallwood-Cuevas anchor a measure that binds a comprehensive price-gouging regime to emergencies, weaving displacement protections and new housing-market oversight into California’s consumer-protection framework. The core objective centers on preventing excessive price increases for essential goods and housing-related services when emergencies disrupt markets and displace residents.

The bill creates new liability for unfair competition when acts target people displaced by a state or local emergency, allowing civil penalties up to $2,500 for each violation under the Unfair Competition Law. It also amends existing consumer-protection provisions to prohibit price gouging during emergencies under the Consumers Legal Remedies Act. In addition, the bill applies enhanced penalty considerations to cases involving displaced persons, enabling the trier of fact to impose up to three times the otherwise permissible penalty if specified factors are found.

A new housing-market transparency regime requires housing listing platforms to take action within 30 days after a declared emergency. Specifically, platforms must remove listings when law enforcement notifies that prices violate price-gouging laws, publish and maintain policies informing providers and prospective renters about prohibitions and reporting processes, and provide mechanisms for public reporting and law-enforcement requests. The definition of “housing” is broadened by removing a one-year lease term limit, and the definition of “housing listing platform” covers internet sites and apps that mediate housing availability between providers and consumers.

Beyond these changes, the bill expands penalties and triggers related to price gouging and unfair practices. It adds displacement-centered factors to be considered when imposing penalties, enabling increased penalties in certain circumstances, and extends the scope of penalties under the Civil Code and Penal Code to address price gouging in a broader set of emergency-related contexts. The Penal Code’s price-gouging provisions establish 30-day windows after emergency declarations for most goods and services, with a 10 percent cap on price increases (subject to cost-based exceptions), and a separate 180-day period for certain repair and reconstruction services; hotel room pricing, rental housing, and related costs are addressed within these timeframes. The bill provides extension mechanisms, clarifies that extensions can be terminated by legislative action, and reiterates that local ordinances may impose more stringent rules. It also requires disclosures to be clear and conspicuous and preserves local preemption protections where applicable.