After declaring a state of emergency in response to a 7.0 magnitude earthquake in Northern California last week, state attorney general Rob Bonta issued a warning about price-gouging for products and services, including self-storage unit rentals. Applicable in Del Norte, Humboldt and Mendocino Counties, the edict stipulates that the practice is illegal under Penal Code Section 396. The California Self Storage Association (CSSA) issued a legislative alert to its members last week.
The Dec. 5 earthquake, reported at approximately 10:44 a.m., had an epicenter near Petrolia in Humboldt County. More than 30 aftershocks were also recorded, and damage assessments are underway, according to California Gov. Gavin Newsom, who signed the state-of-emergency declaration to provide resources as needed, according to a source.
During a state of emergency, business operators are prohibited from raising their prices by more than 10%. They also can’t charge prices that exceed their own costs by more than 50%. These rules apply to any business that offers building materials, food, emergency and medical supplies, emergency-cleanup services, food, freight and storage services, gas, hotel accommodations, repair or reconstruction services, or rental housing. There are some exceptions, for example, if the price of goods, labor or materials have increased for the provider, the CSSA reported.
Violators are subject to criminal prosecution that might include a year in county jail and a fine of up to $10,000. In addition, business operators could face civil-enforcement actions carrying penalties up to $2,500 per violation, injunctive relief and mandatory restitution.
CSSA is a nonprofit trade association dedicated to supporting the self-storage industry in California. The group offers educational events, networking opportunities, legislative advocacy and more.
Source: ABC News, 7.0 Magnitude Earthquake Reported Off Northern California Coast, Tsunami Warning Canceled
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