Law Rightfully Gouges the Price Gougers : Investigators and prosecutors are seeing that post-quake vultures get their comeuppance

Many acts of bravery, heroism, generosity, unselfishness, and old-fashioned courtesy helped to soften the blow of the Northridge earthquake on Jan. 17, 1994. On the other hand, of course, there were people who couldn’t pass up the opportunity to take despicable advantage of the situation. You know the type: the kind of slimebag who could crawl under a snake without touching its belly.

They descended upon the victimized like a plague. There were those who gave legitimate contractors a bad name by promising much and then skipping town with thousands of dollars in deposits for work left undone. Others ransacked damaged and vacant apartments and homes for valuables.

Price gougers suddenly decided that items such as plywood had moved onto the gold standard. And folks tried to get government checks for damages that were fabricated or greatly exaggerated.

Well, we are pleased to acknowledge the good investigative work of the Los Angeles County Department of Consumer Affairs and the prosecutorial efforts of the Los Angeles city attorney’s office. They are making sure that at least some of the vultures are getting their comeuppance.

The Northridge quake was the first disaster in which the city has enforced its price-gouging law. It prohibits merchants from raising prices by more than 10% during a declared state of emergency. The law should be pursued with vigor.

One who has felt the bite was the North Hollywood man who used to (we repeat, used to) run a Studio City convenience store in the 11000 block of Ventura Boulevard. Right after the quake, Consumer Affairs estimated that this fellow nearly quintupled the price of a package of “D” cell batteries. He inflated the cost of two bags of ice by 75%. A bottle of water went from $1.29 to $5. The price of a half gallon of milk rose by 83%, and even candy bars received a 125% price increase. Sounds like they could have named this place “Needless Markup.”

Perhaps worst of all, many of the customers who faced this overnight price inflation were regulars who lived nearby or right across the street. “You could say that a lot of them were displeased,” said Deputy City Atty. Ron Kass.

Well, the fellow with the warped sense of Keynesian economics was recently convicted in Van Nuys Municipal Court. He was ordered to pay $7,000, and more than half will go to the American Red Cross Disaster Relief Fund. Looks like the right guy was gouged this time.