Los Angeles – Today, City Attorney Hydee Feldstein Soto announced that her office has filed a civil and criminal action against individuals and a business who have allegedly engaged in price gouging in violation of the law.
The civil enforcement action is against Blueground US, Inc. (“Blueground”), a global home rental giant who allegedly has engaged in price gouging following the displacement of many Angelenos as a result of the January wildfires. Offering fully furnished housing for rent, Blueground, which currently has approximately 200 properties available in Los Angeles, allegedly increased the prices 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.
Feldstein Soto’s lawsuit, filed for violations of the CA Unfair Competition Law, seeks a permanent injunction barring Blueground from charging more than 10 percent throughout the duration of the current state of emergency - including extensions, during future declarations of local emergencies, restitution to consumers who were charged illegal rent, and civil penalties.
“It is not only unconscionable for Blueground to take advantage of Angelenos when they are at their most vulnerable, it is illegal and must stop immediately,” said Hydee Feldstein Soto, Los Angeles City Attorney. “Our prosecutorial offices at the state, county, and local levels are united in this effort to fight price gouging and hold accountable individuals and businesses who prey on our residents during this unprecedented emergency.”
According to the complaint, Blueground offers fully furnished turnkey rentals in numerous locations around the world, including Los Angeles. It advertises rental listings on its own website, and third-party sites such as Airbnb, Zillow, and Westside Rentals, and claims to offer flexible terms as short as one month. Turnkey housing could be a desirable option for those who are suddenly and unexpectedly in need of temporary housing.
On January 7, 2025, Governor Newsom declared a state of emergency in response to the wildfires in the Pacific Palisades neighborhood within the City of Los Angeles and the Eaton Fire in the unincorporated LA County community of Altadena. Together the fires quickly became two of the most destructive in California history. As a result, over 100,000 Angelenos had to evacuate their homes, and many are still unable to return.
Following the Northridge earthquake in 1994, the CA “Anti-Price Gouging Law” was enacted to protect consumers from predatory pricing during a natural disaster and it took effect immediately upon the Governor’s declaration, making it illegal for Blueground to increase the price of its existing rentals by more than 10 percent. The company allegedly did so anyway - by more than 10 percent and up to more than 50 percent. Blueground’s alleged increase of the price of its existing rentals is in violation of California’s Unfair Competition Law.
Examples of illegal price gouging by Blueground of Los Angeles properties:
354 South Spring St., Los Angeles. (ID 1208)
Zillow shows that the apartment under this ID number was being advertised for $4140/month on December 31, 2024, and that the price was increased by 30.4% to $5400 on January 10 before the listing was removed.354 South Spring St., Los Angeles (ID 1206).
Zillow shows that the apartment under this ID number was being advertised for $2000/month on December 31, 2024 and that the price was increased by 56% to $3120/month on January 7. The price was reduced to $2730 (36.5% above the last pre-emergency price) on January 10, and the listing was removed from Zillow.10734 Bloomfield St., North Hollywood.
Zillow shows this property was being advertised for $3980/month on December 31, 2024, and that the price was increased to $4,800/month on January 10, 2025 (20.6% above the last pre-emergency price).12501 Sapphire Place, Valley Village.
Zillow shows that this rental was being advertised for $4370/month on December 31, 2024, and that the price was increased to $4940 (13% above the most recent pre-emergency price) on January 13, 2025.4227 McLaughlin Ave., Los Angeles (ID 136).
Zillow shows that this property was being advertised for $3700/month on December 30, 2024. After the price was increased and then reduced again, the listing was removed from Zillow on January 14. The listing was re-posted on Zillow on January 23 at $3850/month, before being reduced to $3810 and removed on January 27, 2025. That same day, Blueground’s own website was advertising the property for rent beginning on February 17, 2024 at $4680 for a one-month lease (26.5% over the last pre-emergency price).
The Public Rights Branch within the City Attorney’s Office is managing this litigation:
Case #25STCV02951
The People of the State of California vs, BLUEGROUND US, INC., a Delaware corporation.
To further enforce the Anti-Gouging Law as it relates to the wildfires, the City Attorney’s Criminal Branch has charged homeowner Noelle Cooke and her licensed real estate agent, Roger Perry, with price gouging of a tenant. In this matter, Cooke allegedly illegally increased the rent by 38%.
Violations of the Anti-Price Gouging Law are criminal misdemeanors, and may be punished by imprisonment in a county jail for up to one year, and/or by a fine of not more than $10,000.
“In the wake of the Los Angeles fires, we have seen both the best and worst in people. My office is committed to holding accountable the unscrupulous individuals who have engaged, or are engaging, in price gouging,” said Attorney General Rob Bonta. “We have filed charges against two real estate agents who attempted to rent homes above the 10% limit laid out in Penal Code section 396, and we are pleased to collaborate with the Los Angeles City Attorney’s Office in the criminal case being announced today. Collaboration is critical in order to effectively tackle the scourge of price gouging and protect our neighbors.”
Case #25CJCM00579-01
The People of the State of California vs.
1. Noelle Marie Cooke
2. Roger Charles Perry
In addition to the civil and criminal actions described above, as of February 3, 2025, the City Attorney’s Office has issued more than 250 cease and desist letters to owners, landlords and property management companies based on reports of price gouging forwarded to the Office.
Feldstein Soto encourages Angelenos who believe they are victims of price gouging, or those who suspect that it is happening, to let the City know by submitting this complaint form or calling 311. Reports may be filed anonymously.
She also encourages Angelenos to visit the LA City Emergency Management Department for the latest information, including assistance for individuals, families, businesses, workers and property owners.