Is it expensive, or is it price gouging? State of emergencies in California protect your wallet

Drastic increases in prices for essential services or goods in Plumas, Tehama and Butte counties is illegal thanks to a statute that protects Californians from price gouging during a state of emergency.

The consumer alert , issued by California Attorney General Rob Bonta on July 27, followed Gov. Gavin Newsom’s declaration of a state of emergency earlier last week for Plumas County due to the Gold Complex Fire and for Butte and Tehama Counties due to the Park Fire.

“As the Gold Complex and Park Fires force evacuations across Plumas, Butte, and Tehama Counties, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more,” Bonta said in the news release.“I urge all Californians to listen to communication from officials, lend a helping hand where they can, and report price gouging when they see it.”

Here's what to know to avoid the unfair practice.

What is price gouging?

Price gouging occurs when the prices of essential consumer goods and services are “greatly increased” during an emergency or disaster to take advantage of customers, according to the state’s attorney general’s office . One exception to this is if the price of labor, goods or materials has increased for the business, according to the news release. In California, protections “generally apply for 30 days after a declaration of emergency,” though some services do have a longer window, says the state’s attorney general’s office.

Is it expensive, or is price gouging occuring?

In California, Penal Code Section 396 prohibits raising the price of many consumer goods and services by more than 10% after an emergency has been declared. If a good or service was only offered after an emergency was declared, then sellers can’t charge a price greater than 50% of the cost to provide the item or service, according to the state’s attorney general’s office. All sellers must comply with the statute, including manufacturers, wholesalers, distributors and retailers.

People can find whether an emergency declaration has been made for the area they live in on the governor’s website at gov.ca.gov or with the governor's Office of Emergency Services .

What goods and services are protected by California’s anti-price gouging statute?

Here are just some examples of goods and services protected by the statute:

• Lodging, including permanent or temporary rental housing, hotels, motels and mobile homes
• Food and drink, including for animals
• Emergency supplies such as water, flashlights, batteries, diapers and toiletries
• Medical supplies such as prescription and nonprescription medications, bandages, gauze

The law also applies to those who sell gasoline, building materials, repair or reconstruction services, freight and storage services and more, according to the news release.

I think I’m a victim of price gouging. What should I do?

Report it to your local authorities or the attorney general at oag.ca.gov/report , according to the news release. Those in violation of the statute can be criminally prosecuted and face a year in county jail and/or a fine of up to $10,000. Violators may also face civil penalties of up to $2,500 per violation and more, according to the news release.

Paris Barraza is a trending reporter covering California news at the The Desert Sun. Reach her at pbarraza@gannett.com. Follow her on Twitter @ParisBarraza.

This article originally appeared on Des Moines Register: Is it expensive, or is it price gouging? State of emergencies in California protect your wallet