Since the beginning of the COVID-19 outbreak, the cost of critical health supplies has spiked dramatically. While price gouging is illegal in California, the current law has not been updated since 1992, and is clearly failing to protect us.
This bill would close a loophole which currently allows new sellers to engage in price gouging, allow the governor or legislature to extend these protections as needed, and give more authority to regulate price spikes.
This bill is important for several reasons:
1. Price gouging often begins before an official state of emergency is declared.
2. Regulations on price gouging should be enforced for as long as deemed necessary.
3. New sellers entering the marketplace must not be allowed to sell critical products at unconscionable prices.