California Attorney General Xavier Becerra Thursday announced the filing of misdemeanor price gouging charges against a Los Angeles pharmacy operator for allegedly charging excessive prices for masks.
The complaint alleges that Katrin Golian, doing business as RxAll Pharmacy, sold KN95 masks at prices exceeding the 50% mark-up permitted under Gov. Gavin Newsom’s anti-price gouging executive order issued in April.
The case is the first in which charges have been filed under Newsom’s order, according to the attorney general.
“The rules against price gouging are simple and direct,” said Becerra, who alleged that Golian “knew the rules and willingly chose to sell masks at elevated prices that violate our state’s price gouging prohibition.”
After a consumer made a complaint against RxAll Pharmacy, an investigation conducted by the Department of Justice revealed that the pharmacy was buying masks for $5 each and selling them for $10, according to Becerra.
After being warned by special agents that the price of the masks violated the governor’s order, the pharmacy agreed to reduce the price on masks, according to Becerra. But several days later, special agents returned to RxAll Pharmacy and found that the masks were still being sold for $10, he said.
California law makes it illegal to refuse or willfully neglect a lawful order issued under the Emergency Services Act. Violations are punishable by sentences of up to six months in jail and maximum fines of $1,000, according to Becerra.