California Suspends Hotel Price-Gouging Protections Amid El Niño Emergency
What happened
Gavin Newsom issued a proclamation on September 22, 2026, suspending price-gouging protections for hotels in the state of California. The order was made under the El Niño state of emergency and explicitly suspends the restrictions of California Penal Code section 396 at this time. Under the normal law, a governor's proclamation typically makes it unlawful for hotels or motels to raise advertised regular rates by more than 10 percent for 30 days, with exceptions for documented cost increases or seasonal adjustments.
From travelerstoday.com
Why it matters
The suspension removes the automatic cap on rate increases during the emergency period. This change impacts the market stability of the hospitality sector during the 2026–27 wet season. The order mobilizes state agencies to prepare for the El Niño event, which forecasters suggest could be the strongest on record.
Emergency orders have been issued to protect fire victims from price gouging, and investigations into such gouging are underway.
From travelerstoday.com
Who's involved
- Gavin NewsomGovernor who issued the proclamation suspending price-gouging protections.
- State of CaliforniaThe state whose hotel pricing regulations were affected by the proclamation.
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The entities involved
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Gavin Newsom
40th governor of California since 2019
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State of California
government of the U.S. state of California