SB36 - Price gouging: state of emergency.

Enrolled September 13, 2025 Passed IN Senate September 11, 2025 Passed IN Assembly September 09, 2025 Amended IN Assembly September 05, 2025 Amended IN Assembly September 02, 2025 Amended IN Assembly July 17, 2025 Amended IN Assembly June 25, 2025 Amended IN Senate May 23, 2025 Amended IN Senate February 24, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 36 Introduced by Senators Umberg and Smallwood-Cuevas (Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Hurtado, Menjivar, Pérez, Reyes, and Wahab) (Coauthor: Senator Richardson) December 03, 2024 An act to add Section 17206.3 to the Business and Professions Code, to amend Sections 1770 and 3345 of, and to add Title 1.4E (commencing with Section 1749.9) to Part 4 of Division 3 of, the Civil Code, and to amend Section 396 of the Penal Code, relating to price gouging. LEGISLATIVE COUNSEL'S DIGEST SB 36, Umberg. Price gouging: state of emergency. (1) Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified. This bill would additionally make a person who violates those provisions, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency, as defined, at the time the violation occurred, liable for a civil penalty not to exceed $2,500 for each violation, as specified. (2) Existing law, the Consumers Legal Remedies Act, makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer. These include, among others, making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions. This bill would additionally make it unlawful under those provisions to, among other things, price gouge during a state of emergency or local emergency. (3) Existing law requires the trier of fact, in a civil action to redress unfair or deceptive acts or practices or unfair competition brought by, on behalf of, or for the benefit of senior citizens, disabled persons, or veterans, to consider specified factors in determining the amount of a discretionary fine, penalty, or remedy to be imposed. Existing law authorizes the trier of fact, upon a finding of one of those factors, to impose a fine, penalty, or other remedy in an amount up to 3 times greater than the amount authorized by statute or the amount the trier of fact would impose in the absence of the affirmative finding. This bill would make those provisions applicable to persons displaced due to a state of emergency or a local emergency, as defined, at the time the violation occurred. (4) Under existing law, upon the proclamation of a state of emergency by the President of the United States or the Governor, or upon the declaration of a local emergency by the executive officer of any county, city, or city and county, and for 30 days or 180 days, as specified, following the proclamation or declaration of emergency, it is a misdemeanor for a person, contractor, business, or other entity to sell or offer to sell certain goods or services for a price of more than 10% greater than the price charged by that person immediately prior to the proclamation or declaration of emergency. Existing law authorizes the extension of these prohibitions by, among others, the Governor, if deemed necessary to protect the lives, property, or welfare of the citizens. Existing law defines “housing” as any rental housing with an initial lease term of no longer than one year. This bill would specify that an extension authorized by the Governor may be terminated by a concurrent resolution of the Legislature declaring it at an end. The bill would require a housing listing platform, during the period of 30 days following a proclamation of a state emergency or a declaration of a local emergency, as specified, to, among other things, remove a listing when notified by local, regional, or state law enforcement agencies that the price for a listing made available on the platform violates the price gouging provisions and establish and maintain a policy informing housing providers that listings are prohibited from violating the above-described provisions, as specified. This bill would define “housing listing platform” for these purposes as an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. The bill would remove the one-year lease term limit from the definition of “housing.” Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 17206.3 is added to the Business and Professions Code, to read: 17206.3. (a) (1) In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair competition are perpetrated against one or more persons displaced due to a state of emergency or local emergency at the time the violation occurred, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action as prescribed in Section 17206. (2) Any civil penalty shall be paid as prescribed by subdivisions (b) and (c) of Section 17206. (b) As used in this section, “state of emergency” and “local emergency” have the same meaning as in Section 396 of the Penal Code. SEC. 2. Title 1.4E (commencing with Section 1749.9) is added to Part 4 of Division 3 of the Civil Code, to read: TITLE 1.4E. HOUSING LISTING PLATFORMS 1749.9. (a) Upon the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county, a housing listing platform shall, during the period of 30 days following the proclamation or declaration, do all of the following: (1) Remove a listing when notified by local, regional, or state law enforcement agencies that the price for the listing made available on the housing listing platform violates Section 396 of the Penal Code. (2) Establish and maintain a policy informing housing providers that listings are prohibited from violating Section 396 of the Penal Code, and that failure to comply may include consequences including, but not limited to, suspension or termination of the housing provider’s account. (3) Establish and maintain a policy informing persons searching for rental housing that listings are prohibited from violating Section 396 of the Penal Code, and how to report listings that they believe are in violation of the law to the appropriate law enforcement agencies. (4) Provide a mechanism on the housing listing platform that allows any individual to notify the housing listing platform that a person may have violated Section 396 of the Penal Code. (5) Provide means, including a link to a dedicated web page, online portal, or email address on the housing listing platform, by which law enforcement can submit law enforcement requests, including warrants, subpoenas, and other legal processes, and related timelines for response. (6) Maintain internal written policies and systems to comply with the requirements of this section and to respond to law enforcement requests related to price gouging. (b) The policies required by paragraphs (2) and (3), and the mechanism required by paragraph (4), of subdivision (a) shall be publicly posted and readily accessible to users. (c) For purposes of this section, both of the following definitions apply: (1) “Housing listing platform” means an internet website, application, or other similar centralized platform that acts as an intermediary between a consumer and another person which allows another person to list the availability of housing, lodging, or units for sale or for rent to a consumer. (2) “State of emergency” and “local emergency” have the same meaning as in Section 396 of the Penal Code. SEC. 3. Section 1770 of the Civil Code is amended to read: 1770. (a) The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful: (1) Passing off goods or services as those of another. (2) Misrepresenting the source, sponsorship, approval, or certification of goods or services. (3) Misrepresenting the affiliation, connection, or association with, or certification by, another. (4) Using deceptive representations or designations of geographic origin in connection with goods or services. (5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have. (6) Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand. (7) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another. (8) Disparaging the goods, services, or business of another by false or misleading representation of fact. (9) Advertising goods or services with intent not to sell them as advertised. (10) Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity. (11) Advertising furniture without clearly indicating that it is unassembled if that is the case. (12) Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller. (13) Making false or misleading statements of fact concerning reasons for, existence of, or amounts of, price reductions. (14) Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law. (15) Representing that a part, replacement, or repair service is needed when it is not. (16) Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not. (17) Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction. (18) Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer. (19) Inserting an unconscionable provision in the contract. (20) Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (A) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (B) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses that are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code if more than 50 percent of purchases are made at the specific price set forth in the advertisement. (21) Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7. (22) (A) Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message. (B) This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient. (23) (A) The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan or assessment is made encumbering the primary residence of that consumer for purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of any of the following: (i) Subsection (h) or (i) of Section 1639 of Title 15 of the United States Code. (ii) Paragraph (1), (2), or (4) of subdivision (a) of Section 226.34 of Title 12 of the Code of Federal Regulations. (iii) Section 22684, 22685, 22686, or 22687 of the Financial Code. (iv) Section 5898.16, 5898.17, 5913, 5922, 5923, 5924, 5925, 5926, or 5940 of the Streets and Highways Code. (B) A third party shall not be liable under this subdivision unless (i) there was an agency relationship between the party who engaged in home solicitation and the third party, or (ii) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision. (24) (A) Charging or receiving an unreasonable fee to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services. (B) For purposes of this paragraph: (i) “Public social services” means those activities and functions of state and local government administered or supervised by the State Department of Health Care Services, the State Department of Public Health, or the State Department of Social Services, and involved in providing aid or services, or both, including health care services, and medical assistance, to those persons who, because of their economic circumstances or social condition, are in need of that aid or those services and may benefit from them. (ii) “Public social services” also includes activities and functions administered or supervised by the United States Department of Veterans Affairs or the California Department of Veterans Affairs involved in providing aid or services, or both, [Text truncated for display. Full text available on Congress.gov.]