LOS ANGELES — The Los Angeles City Council Wednesday gave preliminary approval for an ordinance to bar excessive price increases for housing and lodging as residents recover from the January wildfires.

In a unanimous vote, council members voted to crack down on price gouging. Under the ordinance, landlords would be prohibited from raising rent by a significant amount during a declared emergency and charging fees for rent-related services such as gardening, parking or utilities that were not previously charged under the prior rental agreement.


What You Need To Know

  • In a unanimous vote, council members voted to crack down on price gouging

  • Under the ordinance, landlords would be prohibited from raising rent by a significant amount during a declared emergency and charging fees for rent-related services that were not previously charged under the prior rental agreement

  • Hotel and motel owners would be barred from raising rates by more than 10%

  • Additionally, the city is expected to increase penalties for violators of the law

Hotel and motel owners would be barred from raising rates by more than 10%.

Additionally, the city is expected to increase penalties for violators of the law.

Under the current policy, violations are punishable by a fine of up to $1,000 or by imprisonment in county jail for up to six months.

The ordinance would create a new private right of action for victims of price gouging to pursue a civil lawsuit. If the victim wins the case, they could be awarded up to $30,000 per violation depending on the severity, tenant relocation costs and other appropriate relief.

Councilwoman Traci Park, who represents the Pacific Palisades, along with several of her colleagues introduced a motion in January calling for such protections.

On Tuesday, the LA County Board of Supervisors approved a motion to increase the penalty for price gouging to a maximum of $50,000 per violation.

State law allows for up to one year in jail and a $10,000 fine for price gouging, which occurs when landlords or merchants charge more than 10% above what they were charging before a disaster occurs.

The county’s stricter penalties are expected to remain in effect for the duration of their declaration of a local emergency.