Official Summary Text
SB 36, Umberg.
Price gouging: state of emergency.
(1) Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified.
(2) Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction
intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions.
This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency.
(3) Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount
authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding.
This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred.
(4) Under existing law, upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the executive officer of any county, city, or city and county, and for 30 days or 180 days, as specified, following the proclamation or declaration of emergency, it is a misdemeanor for a person, contractor, business, or other entity to sell or offer to sell certain goods or services for a price of more than 10% greater than the price charged by that person immediately prior to the proclamation or declaration of emergency. Existing law authorizes the extension
of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Existing law defines “housing” as any rental housing with an initial lease term of no longer than one year.
This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are
prohibited from violating the above-described provisions, as specified.
This bill would define “housing listing platform” for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. The bill would remove the one-year lease term limit from the definition of “housing.”