California Emergency Declaration Triggers Price Gouging Restrictions

California Gov. Gavin Newsom has declared a state of emergency in Imperial, Los Angeles, Orange and San Diego counties in response to Tropical Storm Rachel, triggering price-gouging restrictions under state law that affect businesses, including self-storage operators.

The declaration activates California Penal Code Section 396, which generally prohibits businesses from raising prices by more than 10% on certain goods and services following an emergency declaration, subject to statutory exceptions. According to guidance from the California Attorney General, protections under the law take effect immediately after a gubernatorial emergency declaration.

Under the current proclamation, price-gouging protections for Imperial, Los Angeles, Orange and San Diego counties are scheduled to remain in effect through Nov. 14, 2026, under Penal Code Section 396(b), (d), (e) and (f), and through April 13, 2027, under Section 396(c), according to the provided state guidance.

The restrictions are part of California’s broader efforts to prevent businesses from exploiting consumers during emergencies. Self-storage operators should review applicable provisions and confirm how the declaration affects rental rates, new agreements and other covered services at properties in the affected counties.

Other California emergency declarations have also triggered price-gouging protections. The state’s guidance lists protections related to the Calavera and Gann Fire declarations through Feb. 2, 2027, under Section 396(c), and an Orange County chemical incident through Nov. 19, 2026, under the same provision.

Because restrictions and expiration dates vary by declaration and statutory provision, operators should consult the applicable emergency proclamation and current state guidance to verify requirements before implementing price changes.