California’s anti-price gouging statute, Penal Code Section 396, prohibits individuals, specified industries, and service providers from raising the price of many consumer goods and services by more than 10 percent after an emergency has been declared by the President, the Governor, or local officials. The purpose of the law is to protect consumers from escalating prices for essential consumer goods and services that may be scarce or in high demand – including rental housing – during an emergency or disaster. This CAA Industry Insight provides guidance on frequently asked questions about the anti-price gouging law.

Webinar: Understanding the Anti-Price Gouging Law If you follow the news, you probably notice that California appears to be in a constant state of emergency. Whether due to fires, severe storms, earthquakes, or pandemics, both the Governor and local officials have declared countless states of emergency over the last several years. Those emergency declarations trigger a provision of the state’s penal code, called the state’s anti-price gouging law, which limits how much rental housing providers can increase rent. And those limitations apply not only to your existing tenants but also to new tenants even in units that are new to the rental market. A violation of this law is a misdemeanor and subject to significant penalties.


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