California Attorney General Declares Bidding Wars Subject to Price-Gouging Regulations

On January 19, 2025, California Attorney General Rob Bonta emphasized that price-gouging rules remain in effect for landlords amid the ongoing Los Angeles County fires. These regulations limit rent increases to no more than 10% above pre-crisis rates, even in situations where bidding wars occur.

The declaration of a state of emergency due to the Los Angeles County fires has triggered specific price-gouging protections for renters. Under these rules, local landlords cannot charge more than a 10% increase from their previous rental prices. Despite this regulation, many landlords have attempted to raise rents significantly higher—some listings show increases exceeding 50% or even 100%.

This situation has sparked outrage among politicians and tenant advocacy groups. They have called for law enforcement to take action against landlords who violate these rules. The attorney general’s office has committed to prosecuting offenders but acknowledged some confusion regarding whether bidding wars exempt landlords from the price cap.

• Price-gouging laws apply during declared emergencies.
• Landlords are restricted to a maximum rent increase of 10%.
• Violators may face criminal penalties up to $10,000 per violation.

Bonta reiterated that even if potential tenants offer higher rents out of desperation after losing their homes in the fires, landlords are still prohibited from accepting those offers if they exceed the legal limits. He stated that robust protections exist for renters during crises and emphasized his commitment to enforcing these laws effectively.

The attorney general’s clarification serves as a reminder that compliance with price-gouging statutes is critical during times of crisis. Landlords must adhere strictly to these guidelines regardless of market conditions or tenant offers.