Business News
State attorney general issues consumer alert on price gouging in fire-affected communities statewide
Attorney General Becerra reminds all Californians that price gouging during and after a state of emergency is illegal under Penal Code Section 396.
Price gouging is prohibited anywhere in the state where there is an increased consumer demand as a result of a declared emergency.
Emergency declarations are active in fire-affected communities across California, including Butte, Colusa, Lake, Mendocino, Napa, San Diego, Santa Barbara, Shasta, Siskiyou, Sonoma and Ventura counties. Local declarations may also trigger price-gouging protections.
“Families affected by wildfires throughout the state are trying to rebuild and recover, and they should be able to do so without the worry of being cheated. We remind consumers that California’s price gouging prohibitions apply not only during the immediate disaster, but also after a state of emergency has been declared, when families are working to rebuild,” said Becerra. “Our state’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies. I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint through my office’s Web site or call 800-952-5225, or to contact their local police department or sheriff’s office.”
California law generally prohibits charging a price that exceeds, by more than 10 percent, the price of an item before a state or local declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline.
The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations and rental housing.
Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.
Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000.
Violators are also subject to civil enforcement actions including civil penalties of up to $5,000 per violation, injunctive relief and mandatory restitution.
The attorney general and local district attorneys can enforce the statute.
- Details
- Written by: California Attorney General's Office
SACRAMENTO – California Attorney General Xavier Becerra announced a $68 million multistate settlement with UBS for fraudulent conduct involving manipulation of the London Interbank Offered Rate, or LIBOR.
LIBOR is the rate at which banks lend money to one another and is a key financial tool that determines interest rates for many financial products, including government and corporate bonds.
During the financial crisis, large international banks manipulated LIBOR to enhance their financial health, avoid negative publicity, and minimize harm to their reputations. They did so at the expense of investors, Becerra said.
“California is committed to holding powerful international banks like UBS accountable,” said Becerra. “We will not accept financial institutions breaking the rules and hanging Californians out to dry.”
The settlement follows a multistate investigation, opened in July 2012, that revealed that UBS deliberately suppressed its LIBOR submissions in order to avoid negative media attention and doubts about its creditworthiness. This unlawful strategy resulted in losses to consumers who invested with UBS in LIBOR-linked financial instruments.
The settlement announced this week is expected to return approximately $9 million to California governmental and nonprofit entities that suffered because of UBS’s conduct.
California serves on the executive committee of the LIBOR multistate group that began investigating LIBOR misconduct in 2012.
Including past settlements with Citibank ($100 million), Barclays ($100 million), and Deutsche Bank ($220 million), the coalition has now recovered $488 million. More than $50 million of that money has gone to California governmental and nonprofit entities.
A copy of the settlement agreement can be found here.
LIBOR is the rate at which banks lend money to one another and is a key financial tool that determines interest rates for many financial products, including government and corporate bonds.
During the financial crisis, large international banks manipulated LIBOR to enhance their financial health, avoid negative publicity, and minimize harm to their reputations. They did so at the expense of investors, Becerra said.
“California is committed to holding powerful international banks like UBS accountable,” said Becerra. “We will not accept financial institutions breaking the rules and hanging Californians out to dry.”
The settlement follows a multistate investigation, opened in July 2012, that revealed that UBS deliberately suppressed its LIBOR submissions in order to avoid negative media attention and doubts about its creditworthiness. This unlawful strategy resulted in losses to consumers who invested with UBS in LIBOR-linked financial instruments.
The settlement announced this week is expected to return approximately $9 million to California governmental and nonprofit entities that suffered because of UBS’s conduct.
California serves on the executive committee of the LIBOR multistate group that began investigating LIBOR misconduct in 2012.
Including past settlements with Citibank ($100 million), Barclays ($100 million), and Deutsche Bank ($220 million), the coalition has now recovered $488 million. More than $50 million of that money has gone to California governmental and nonprofit entities.
A copy of the settlement agreement can be found here.
- Details
- Written by: California Attorney General's Office
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