LA City Attorney Investigates 900 Price-Gouging Complaints After Wildfires
The Los Angeles City Attorney’s Office is investigating around 900 price-gouging complaints following the recent wildfires in Los Angeles County. Many complaints involve landlords raising rents beyond legal limits, especially in the wake of the Palisades and Eaton fires.
L.A. City Attorney Hydee Feldstein Soto is leading the efforts, with various divisions of her office handling investigations. A major case was filed against Blueground US Inc., a New York-based company accused of raising rents by up to 50% following the fires, violating Governor Gavin Newsom's emergency order against price gouging.
The lawsuit, filed on Feb. 3, claims Blueground increased rental prices by over 10% between Jan. 7 and Jan. 14. Feldstein Soto emphasized the urgency of holding companies accountable, as price gouging takes advantage of people in distress.
If convicted, Blueground could face $2,500 per violation, which could amount to over $100,000 in total for multiple violations. The case stems from complaints received from tenants' rights groups and individuals at FEMA disaster recovery centers.
Feldstein Soto’s office is determined to stop price gouging, using both civil enforcement and public pressure to ensure compliance. The investigation is ongoing, with potential restitution for victims.
