Bill > SB368

This bill amends Section 396 of the Penal Code to strengthen protections against price gouging during states of emergency. The bill maintains existing provisions that prohibit sellers from increasing prices by more than 10% on essential goods and services (such as food, medical supplies, housing, and emergency services) during emergencies declared by the President, Governor, or local authorities. A key modification is the requirement for the Department of Justice and local prosecutors to establish partnerships to enforce these price gouging provisions. The bill clarifies that sellers can only charge more than 10% if they can prove the increase is directly attributable to additional supplier or labor costs, and the price remains within their customary markup. The legislation applies to various contexts including consumer goods, housing rentals, and emergency services, with specific time frames ranging from 30 to 180 days depending on the type of good or service. Violations are considered misdemeanors punishable by up to one year in county jail, a fine of up to $10,000, or both, and are also considered unfair business practices. The bill aims to protect consumers from exploitation during emergencies while allowing legitimate cost increases, and it does not preempt local ordinances that may impose stricter regulations.

Budget and Finance, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB368