LAKEPORT >> Clear Lake flooded many residents out of their homes in past months, causing a scramble for supplies and temporary housing. In light of this sudden demand, the city of Lakeport has warned against price gouging.
“We had some concerns from the community,” said District Four Supervisor Tina Scott, who said the issue reached the Board during Tuesday’s meeting. “But absolutely no claims (of recent gouging).”
The Lakeport Police Department put out a public notice regarding the issue, stating price gouging during an emergency is illegal under California Penal Code section 396.
According to another report by Lakeport’s attorney, David Ruderman, Penal Code 396 forbids businesses from increase their prices over 10 percent of prices listed before the declaration of emergency. This means prices of food, supplies, emergency cleanup services, storage services and hotel accommodations must remain relatively stagnant.
Lake County Supervisors made the county’s emergency status official on Jan. 17. That order remains in place as floodwaters linger in some places and clean up begins. Code 396 only lasts for 30 days after the declaration, but the city can extend the effect for more 30-day periods “if deemed necessary to protect the lives, property, or welfare of the citizens,” according to Ruderman’s report.
Both the LPD and City Council reports make specific mention of rental and housing prices, which also must follow the code. Based on previous emergencies, many residents had concerns about that exact issue based on previous disasters. According to Lakeport’s community development director, Kevin Ingram, residents made several reports of price gouging during the recent Valley Fire, which displaced many people from their homes and forced them to find other housing. No claims contained evidence, but measures were taken anyway.
“We wanted to get ahead of this,” Ingram said. “Several people will be relocating.“
Ingram said the city council has looked into temporarily raising the minimum fine for these illegal price hikes. Currently, violators would face a $10,000 fine for gouging and would also be subject to other charges of unlawful practices and unfair competition.
During the Valley Fire, Lakeport increased base fine from $10,000 to $20,000. Ruderman’s report said the practice Code 396 cannot be changed by local ordinances, but also does not prevent the application of a more severe penalty.
The ordinance applies statewide, but Scott said the extra notification and enforcement might prevent even the notion of gouging.
“(The City of Lakeport) was just trying to inform people so they didn’t think this was an opportunity,” she said.
