California warns more than 200 hotels and landlords about price cuts due to fire

California Atty. Gen. Rob Bonta has sent more than 200 letters to landlords and hoteliers warning them of suspected wildfire-related rate fraud, his office announced Friday.

“The price increase we see and hear must stop now,” said Bonta in a statement. “These letters are one of the many tools my office uses to stop this illegal activity. May they serve as an announcement that we are taking immediate action, and we will not stop until the price hike ends. “

Online listings showed landlords raising prices 50% or more above the advertised rent before last week's fire, well above the 10% increase allowed under law. Activist groups compiled spreadsheets of alleged lawbreakers and pressured the authorities to take action.

The letters inform recipients that they are subject to a price reduction appeal and put them on notice of the law's provisions and penalties for violating them. In addition to these letters, Bonta noted that his office has an ongoing criminal investigation into price gouging.

And on Friday, Gov. Gavin Newsom issued an executive order that prohibits the eviction of tenants who are sheltering one or more people displaced by the wildfires, even if doing so would violate the terms of the lease.

“Opening your home to help shelter those in need is not only encouraged and generous, but it deserves protection,” Newsom said in a statement.

Newsom's order is in effect until March 8.