A lawsuit has been filed against Blueground US Inc. for illegally increasing rent prices over 50% for furnished apartments in Los Angeles following devastating wildfires. The city's attorney asserts that such hikes violate California's anti-gouging law, which limits rent increases to 10% during states of emergency. Examples include a 20.6% increase in North Hollywood and a 56% surge downtown. The potential penalties could exceed $100,000. Blueground, a startup founded in 2013, offers furnished rentals and was valued at $750 million in 2021.
"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."
"The monthly rent for an apartment in North Hollywood that had been listed for $3,980 on Zillow on Dec. 31 was raised 20.6% to $4,800 on Jan. 10."
"Among examples cited by the city attorney's office of price-gouging by Blueground, rent for a unit in the city's downtown increased 56% on Jan. 7 before the price was lowered to $2,730 on Jan. 10..."
"California Attorney General Rob Bonta has also filed price-gouging enforcement actions in the wake of the state's recent wildfires."
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