Los Angeles – City Attorney Hydee Feldstein Soto announced today that her office has recovered full restitution for fire survivors in a civil enforcement action against Blueground US, Inc. (“Blueground”), a global home rental giant who allegedly engaged in price gouging following the declaration of a state of emergency after the January 2025 Palisades and Eaton wildfires. Feldstein Soto’s lawsuit, filed for violations of the CA Unfair Competition Law and the City’s price gouging ordinance, sought an injunction barring Blueground from charging illegal gouged prices during the current state of emergency - now and during any future declarations of local emergencies. To settle the lawsuit, Blueground is required to pay $1.2 million in penalties to the city and county, plus restitution to price gouged tenants.
“The January 2025 wildfires was the most unprecedented event in the history of our City, devastating the lives of many Angelenos. Our suit alleged that Blueground not only violated the law, but preyed on vulnerable individuals who had already lost so much,” said Hydee Feldstein Soto, Los Angeles City Attorney. “My office will continue to hold accountable individuals and businesses who violate the law and exploit our residents.”
Following the LA wildfires, Feldstein Soto filed a civil enforcement action against Blueground, Inc, alleging that the company engaged in price gouging in violation of the law. Offering fully furnished housing for rent, Blueground, which had approximately 200 properties available in Los Angeles, allegedly increased the prices of some of its rentals by more than 10 percent and up to more than 50 percent above prices they advertised just days prior to the start of the fires. In doing so, the Delaware-based rental platform allegedly violated CA Penal Code section 396 - the “Anti-Gouging Law” - which is triggered automatically upon the declaration of a state of emergency during a natural disaster.
Blueground allegedly continued to violate additional laws since Feldstein Soto’s office filed the lawsuit, including the City Price Gouging Law, the Rent Stabilization Ordinance (RSO), and the Tenant Protection Act (TPA). The business also allegedly engaged in unfair and fraudulent business practicesby including void and unenforceable terms in its rental agreements that the office alleged were misleading to consumers.
The judgment, once entered, prohibits Blueground from advertising, offering, or charging rent in Los Angeles County or the City of Los Angeles that violates the state or city price gouging laws, from violating the RSO and TPA, and from including certain unlawful terms in its rental agreements. The company must alsopay restitution toindividuals who paid rent that was more than what was allowed under the city or state price gouging laws, plus civil penalties totaling $1,200,000.
The Public Rights Branch within the Los Angeles City Attorney’s Office managed this litigation.
LASC Case #25STCV02951: The People of the State of California vs, BLUEGROUND US, INC., a Delaware corporation.
Stipulated Judgment
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Hydee Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022. Her team of nearly 1,000 legal professionals, including 500+ attorneys, carries out legal work for the City of Los Angeles at her direction and under her supervision. She is the first female City Attorney in L.A. history.