Price gouging: state of emergency.

Senators Umberg and Smallwood-Cuevas propose comprehensive legislation to strengthen California's price gouging protections during emergencies, establishing new oversight mechanisms and enhanced penalties for violations. The bill creates additional safeguards for displaced persons and implements specific requirements for housing listing platforms.

The legislation imposes a $2,500 civil penalty per violation when unfair competition practices target individuals displaced by emergencies. Housing listing platforms must remove listings that violate price gouging restrictions within 30 days of an emergency declaration and maintain policies informing users about prohibited practices. The platforms must also provide mechanisms for reporting violations and responding to law enforcement requests.

The bill expands existing consumer protection laws to explicitly include price gouging during emergencies as an unlawful practice. It extends special penalty considerations, previously limited to senior citizens, disabled persons, and veterans, to include persons displaced by emergencies. Law enforcement agencies receive additional investigative authority through new search warrant provisions specifically covering price gouging violations.

Geographic restrictions apply to all counties named in emergency declarations plus those within a 25-mile radius. The Governor may extend price gouging prohibitions beyond the initial 30-day period, though the Legislature retains authority to terminate such extensions through concurrent resolution. The provisions affecting housing listing platforms and search warrant authority take effect in 2024 and 2026, respectively.