Yolo County prosecutors say they’ve received around two dozen complaints of price-gouging triggered by the coronavirus pandemic, with markups for high-demand products such as toilet paper and hand sanitizer among the most extreme.
“This is one of our top priorities right now,” said Rachel Hilzinger, a deputy district attorney in the Yolo DA’s consumer fraud and environmental protection division. “We’re reviewing each complaint and have investigators that are looking into them, and we’re taking all available steps to get immediate compliance.”
The DA’s Office announced in March its intent to investigate and prosecute COVID-related price gouging, shortly after Gov. Gavin Newsom issued a state of emergency proclamation that put profiteering protections in effect through Sept. 4.
Price gouging is unlawful under California’s Penal Code 396, which prohibits raising the price of many essential goods and services by more than 10 percent after an emergency has been declared, unless the seller can prove their own costs have increased.
The law applies to necessities such as food and drink (including for animals), emergency supplies (water, flashlights, radios, batteries, candles, blankets, soaps, diapers and toiletries) and medical supplies (prescription and nonprescription medications, bandages, gauze, isopropyl and antibacterial products, among others).
Hotels and motels also are prohibited by increasing their rates by more than 10 percent during and 30 days after a state of emergency under the measure.
Violations are subject to both criminal and civil prosecution, punishable by steep fines, jail time and mandatory restitution.
In Davis, residents have contacted The Davis Enterprise to report seeing exorbitant price tags on in-demand items such as simple face masks selling for $10 apiece or more. One reader said she saw hand sanitizer going for $75 at her local market.
Hilzinger declined to give specific examples of the alleged price hikes her office is investigating, due to the ongoing probe. But she said the complaints have come in from throughout the county as citizens encounter them in their local stores.
She also noted that some businesses have begun carrying certain products they’ve never sold before in order to make a profit, and that can be illegal as well.
“Now, they buy it and repackage it for their customers,” Hilzinger said. Resale prices more than 50 above what it cost to acquire or manufacture a product, however, are considered an unfair business act under an executive order Newsom signed earlier this month.
With no definitive end to the crisis in sight, the DA’s Office continues to seek the public’s help in identifying price gougings in their communities. Complaints can be made via email, phone and online and should include the location, date and time, a photo if possible, and the complainant’s contact information.
“We understand it’s a difficult time for all businesses,” Hilzinger said. “We’re targeting those that are preying upon everyone’s fears and anxiety right now.”
And while the primary goal is immediate compliance, “at the same time, if you have already offered these items, you have already broken the law, so we have to take that into consideration,” Hilzinger said.
— Reach Lauren Keene at lkeene@davisenterprise.net or 530-747-8048. Follow her on Twitter at @laurenkeene
How to report price-gouging violations:
Email: consumerfraud@yoloda.org
Online: yoloda.org/fraud-reporting
Phone: 1-855-4-YOLO-DA (855-496-5632)