California Penal Code §396

On November 24, 2020, a class action price gouging claim was filed against a California based operator of casual fine dining restaurants. The class action lawsuit against Hillstone Restaurant Group alleges price gouging in violation of California Penal Code §396. According to the lawsuit, “Hillstone engaged in unfair and unlawful business practices by increasing its price on food items and also unjustifiably charging a 10% or 15% so-called ‘service or packaging fee’ for takeout orders.” The lawsuit further states that “despite increasing the cost of its food items and adding this Fee, there has been no change in the quality or quantity of the food sold or the packaging being offered for pickup by consumers as compared to Hillstone’s pre-pandemic offerings.” Plaintiffs seek restitution, injunctive relief, attorneys’ fees, and punitive damages. The complaint is striking not only because it shows the extent to which plaintiffs will bring claims at the margins of price gouging restrictions, but also for the glimpse it gives into what may be the coming wave of price gouging claims in 2021.