California officials warn of price gouging, scams as wildfire victims seek help

LOS ANGELES (KABC) -- As thousands of displaced families look for a place to stay due to the wildfires, the state has issued a series of protections, including one against price gouging.

On Sunday, Gov. Gavin Newsom signed an executive order that will streamline the rebuilding of destroyed homes and businesses.

The order also extends protections against price gouging in Los Angeles County on building materials, storage services, construction, and other essential goods and services to January 7, 2026.

During a press conference Saturday, California Attorney General Rob Bonta said his office has received reports of hotels, rental properties, and other businesses charging too much for goods and services.

"We should not be engaged in price gouging, whether it's groceries or rent," he said. "We are very serious about this, and the governor's office, on ensuring that there is no price gouging and that anyone engaged in it is held accountable."

Under California law, during an emergency, businesses are only allowed to increase prices by up to 10%. Violators can receive up to a year in county jail and/or a fine of up to $10,000.

For most of us, price gouging protections will remain in place for 30 days, but for contractor-related services, they can last for as long as six months.

"Bottom line, be on the lookout for illegally jacked up prices," said Bonta. "If you see something, if you know someone who's been the victim of price gouging, please report it to local authorities or my office right away."

Bonta said some hotels and landlords use algorithms based on supply and demand to set their prices.

"If those algorithms lead to prices higher after the declaration of emergency than before, by more than 10%, you're violating the law," said Bonta. "You need to figure out how to adjust your prices consistent with the law. If you're a mom-and-pop and you're not aware of these laws, you're now aware of these laws. Ignorance is not an excuse."

He also urged people to watch out for scammers who create fake organizations, pretending to be charities and nonprofits raising money for victims.

"We also see scammers who are taking advantage of that goodness and that generosity and scamming and defrauding those individuals," said Bonta. "We've seen scams that have gone after elderly individuals, immigrants, including those who don't speak English as their first language. Some even create fraudulent organizations with names illegal."

Scams to look out for during wildfire emergency

One scam to watch out for is a contractor scam. This is when someone pretends to be a contractor and tries to pressure homeowners into putting down a deposit fee to "hold their spot" and guarantee construction - construction that may never occur, said Bonta.

Scammers might also pretend to be insurance adjusters, demanding payment for filing a claim or seeking personal identifying information. Bonta said they pretend to be a government official or a relief organization, like FEMA.

There is no fee for government services like these during emergencies.

How to stay vigilant and protect yourself from scams

Be sure to verify credentials and don't be afraid to check licenses for contractors, adjusters and charities.

Be skeptical of anyone asking for upfront payments, which is an automatic red flag. Bonta said there's a registry search tool on the Department of Justice's website that allows you to search the files of charities and fundraisers. You can find it here.

"Californians are resilient," said Bonta. "California is strong, especially when as now, we stand united. We will get through this. L.A. will get through this together, and we will rebuild and we will heal."