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$10,000 Fine, Jail Possible for Coronavirus Price Gouging, Shasta DA Warns

Due to the recent statewide public health emergency related to COVID-19 in California, Shasta County District Attorney Stephanie A. Bridgett issues this Consumer Alert to inform residents about price gouging laws.

Under Penal Code Section 396 (price gouging statute), it is illegal to charge a price for goods
or services that is more than 10% higher than the price charged immediately before the emergency declaration.

Governor Gavin Newsom declared a State of Emergency for California on March 4, 2020
and President Donald J. Trump declared a National Emergency on March 13, 2020. The price gouging law applies to those, among many others, who sell: food, consumer goods, emergency supplies, medical supplies, and gasoline.

District Attorney Stephanie A. Bridgett said of the Consumer Alert: “This law is in place to
ensure that if Shasta County residents need to purchase necessary goods or services, during this public health emergency, that they are not financially exploited.”

Violators of the price gouging statute are subject to criminal prosecution that can result in a
one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.

Please be advised, there may be legitimate justifications that may lawfully permit an increase
in price. All facts will be investigated and considered before the District Attorney’s Office makes a determination of whether the price gouging statute has been violated.

Consumers are also warned to beware of fake websites, emails, texts and other messages
from persons claiming to be from the World Health Organization or Centers for Disease Control and Prevention, or anyone claiming to have a coronavirus cure or vaccination
Individuals wanting to report price gouging or Coronavirus scams in Shasta County should
submit complaints on the District Attorney’s website.

Press Release

-from press release

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