Price gouging: state of emergency.

Senators Umberg and Smallwood-Cuevas have introduced legislation to strengthen California's price gouging protections during emergencies by expanding enforcement tools and oversight of housing platforms. The bill establishes new civil penalties up to $2,500 for unfair competition violations against displaced persons during emergencies and requires housing listing platforms to monitor and remove listings that violate price gouging restrictions.

The measure creates specific obligations for housing platforms during the 30 days following an emergency declaration, including removing violating listings upon law enforcement notification, maintaining policies to inform users about prohibited practices, and providing mechanisms to report potential violations. It defines housing platforms as online intermediaries facilitating housing transactions between consumers and providers.

The legislation extends enhanced civil penalties, currently available for violations affecting seniors, disabled persons, and veterans, to also cover individuals displaced by emergencies. Courts may triple statutory penalties when violations specifically target or substantially impact these protected groups. The bill also authorizes search warrants to gather evidence of price gouging violations and applies restrictions to areas within a 50-mile radius of declared emergency zones.

For enforcement purposes, the measure amends multiple codes to align definitions of emergencies, clarify prohibited practices, and establish consistent standards for determining violations. The provisions take effect through a phased approach, with civil code changes beginning July 2024 and penal code amendments starting January 2026.