Pricing-Gouging Law in Effect for Self-Storage Businesses After California Governor Proclaims State of Emergency

Pricing-gouging laws are now in effect for California businesses including self-storage facilities after Governor Gavin Newsom proclaimed a state of emergency in response to winter storms. The proclamation covers Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura Counties, according to a “Legislative & Legal” alert from the California Self Storage Association (CSSA). Price-gouging protections apply after the President of the United States, a state governor, or a city or county executive officer declares a state of emergency. It’s defined as raising a price more than 10% of what it was prior to the event. The protections generally apply for 30 days after the declaration except in the case of reconstruction services and emergency-cleanup services, for which they’re in place for 180 days.

The fact that an emergency is continuing doesn’t by itself extend price-gouging protections beyond their initial expiration, but state and local officials may extend them beyond these timeframes by additional orders, according to CSSA Executive Director Ross Hutchings.

The current emergency proclamation also includes provisions authorizing a California National Guard response if tasked, facilitating unemployment benefits for impacted residents, and making it easier for out-of-state contractors and utilities to repair storm damage, the alert stated.

Source: California Self Storage Association, Legislative & Legal Alert