Price Gouging is Against the Law

Please share this information with your guest facing employees. Price gouging laws not only apply to owners of businesses and properties but also any employee who "participates" in the activity. If a business raises its prices above allowable rates and an employee accepts a reservation OR accepts payments for said sale, they may be held liable also. Price gouging should immediately be reported to the Sonoma County District Attorney's Office.

Once again, California Senate Bill 1363 restricts the extent to which business owners can charge for a variety of resources. This law includes how much lodging operators can change their room rates following a natural disaster.  SB 1363 prohibits hotels from raising rates more than ten percent for 30 days after the disaster declaration, but it permits seasonal adjustments in rates that are regularly scheduled, previously contracted rates, and rate adjustments directly attributable to additional costs for goods or labor used by the hotel or inn. Therefore if your rate on Saturday, Oct. 7 was $350 a night you can only raise the rate to $385 a night. Most properties are reducing their rates to support the victims who have lost their homes and the first responders who are fighting these fires.

A violation of this prohibition is a misdemeanor. Penal Code Section 396(g) provides: - A violation of this section shall constitute an unlawful business practice and an act of unfair competition. For more information, please visit this website.

Contact us

Address: PO Box 6181, Santa Rosa, CA, 95406

Phone: (707) 234-7435


Powered by Wild Apricot Membership Software