When devastating natural disasters strike, like we are seeing in Los Angeles this month with the catastrophic and deadly wildfires and like we’ve experienced in years past in San Diego County, conditions become prime for scams. Simply put, bad actors have a knack for exploiting people in desperate situations.
Inevitably, scammers, looters, gougers and unlicensed contractors come out during states of emergency, ready to prey on people trying to rebuild what they lost. So, considering the destructive wildfires in Los Angeles, this is a good time to remind the public that in these vulnerable times, unlawful activity by greedy businesses, contractors or fraudsters will not be tolerated.
During a declared state of emergency, it is illegal for a business to increase its prices for essential goods or services by more than 10%, unless they can show their own costs have been increased. In addition, looting during a state of emergency carries harsher penalties. Price gouging and unlicensed contracting during a state of emergency is not only a crime, it also can further victimize someone who is already suffering great loss.
Here is what the price gouging statute applies to:
Food (including for animals)
Goods or services used for emergency cleanup
Medical supplies including isopropyl alcohol and antibacterial products
Home heating oil
Building materials
Housing
Transportation
Gasoline
It is also a misdemeanor for a hotel or motel to increase regular rates by more than 10% during a declared emergency and for 30 days following the state of emergency.
Consumers should be extremely cautious if approached by aggressive agents, adjusters or contractors after a disaster. Most businesses are honest and have good intentions, but there are always bad actors waiting to take advantage of disaster victims.
Working as an unlicensed contractor during a state of emergency is a felony. Keep these tips in mind when selecting a contractor:
Ask for proof of licensing such as a pocket license and a second photo ID.
Always verify that the license number matches the contractor you are dealing with.
Beware of scare tactics, odd calls or unsolicited contacts.
Make sure the contractor carries workers’ compensation and liability insurance.
In the aftermath of natural disasters, debris-clearing scams often surface. Do not provide payment upfront and be sure to ask where the debris is being taken. Scammers often ask for money up front and then disappear. Sometimes they dump debris on a neighbor’s property or park, which may cause you to be responsible for the costs and penalties.
The public is also warned to be cautious when dealing with persons soliciting for purported “victim relief” charities. Many legitimate organizations seek contributions during or after an emergency, but scammers often use phony charitable pleas in times like these. Potential contributors should insist on seeing proper credentials before offering to help. Also, make sure you thoroughly vet anyone posing as an insurance agent to verify that the person is a legitimate professional.
Violations of the price gouging statute are subject to criminal prosecution that can result in a year in jail and or a fine of up to $10,000. Violations are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief and victim restitution.
We stand with our neighbors to the north, and we want San Diegans to know our Consumer Protection Unit is always busy at work on behalf of the community.
As your District Attorney, I’m committed to increasing communication and accessibility between the DA’s Office and the public. I hope these consumer and public safety tips have been helpful.
