Pleasanton store, owner charged with price-gouging amid pandemic

State and local prosecutors have charged Pleasanton grocery market Apna Bazar and its owner with nine misdemeanor counts for alleged price-gouging during the COVID-19 emergency, becoming the first ever such case in Alameda County.

Alameda County District Attorney Nancy O’Malley said officials began investigating the Pimlico Drive store after receiving “a chorus of complaints” from shoppers about items being overly high-priced.

Investigators allege the store and owner Rajvinder Pal Singh engaged in unlawful price increases, including up to 306%, on specific items during mid-March in the days after Gov. Gavin Newsom declared a state of emergency in California over the novel coronavirus.

“The law prevents businesses from profiteering when we are in a state of emergency. All businesses throughout Alameda County must be on notice that we will not sit idly by and allow consumers to fall prey to price gouging. My office will ensure that businesses adhere to the law and do not exploit consumers,” O’Malley said in a statement Thursday.

California Attorney General Xavier Becerra said, “We take price gouging seriously and are committed to going after those who break the law during the public health emergency.”

“The Department of Justice relies on all Californians to be vigilant in detecting price gouging. If you see something suspicious, or if you are a victim of price gouging, file a complaint. The more you report, the more we can stop this abuse,” added Becerra.

State and county authorities collaborated on a joint investigation into Apna Bazar, a grocery market specializing in Indian products in the small shopping center at 4040 Pimlico Drive, near the Interstate 580-Santa Rita Road interchange.

Singh, 50, of Dublin, received a summons to appear at the courthouse in Dublin at 9 a.m. July 9 for arraignment. It was not immediately clear whether Singh or the store was represented by an attorney in this case.

Other Apna Bazar locations in the Bay Area are not part of the price-gouging investigation, according to prosecutors.

DA’s investigator Serge Babka wrote in a probable cause statement that his investigation began while scouring social media for reports of local price-gouging on March 18, after which the DA’s office and state Department of Justice received “numerous” allegations from customers about price-gouging at Apna Bazar in Pleasanton.

Receipts and customer interviews demonstrated instances of “flagrant price gouging” that ranged from 25% to 306% increases compared to prices before March 4, when Newsom proclaimed a state of emergency.

State law prohibits charging a price that exceeds the price of the item before the emergency declaration, by more than 10%. The crime is punishable by a misdemeanor count with up to a year in county jail and a $10,000 fine.

The criminal complaint filed in Alameda County Superior Court on Thursday alleges price-gouging on nine specific food items: yellow onions, ginger, green beans, loose black tea, small Thai chili hot peppers, pomegranates, red yams and two brands of quick-cook noodles.

Babka said he interviewed Singh on March 19. “When I spoke with him, he stated he had been forced to turn to other suppliers to keep his shelves stocked and they were charging more, and he was simply passing on the costs,” the investigator said.

“Witnesses reported prices being removed or crossed out on the shelves and employees telling them the prices are what they are when scanned at checkout. I did not receive any requested documentation justifying these increases from the owner or management,” Babka added.

The investigator said he submitted letters to Singh and the store on March 19 and April 17 requesting documentation that justified the price increases, but no such evidence has been provided. As a result, prosecutors opted to pursue criminal charges on Thursday.

O’Malley said her office would continue to investigate instances of price-gouging on consumer goods and medical supplies, and take necessary legal action when appropriate. Anyone who wants to report potential price-gouging can email pricegouging@acgov.org.

Description of the law

The DA’s office also offered the following summary of California’s price-gouging law, for consumer and business reference:

“Penal Code section 396, subsection (b) provides that during a state of emergency, and for 30 days following the declaration, price increases on goods and services may not exceed 10 percent. It is only lawful to go above the 10 percent cap if the excess amount is directly attributable to costs incurred to offer the good or service. Violation of this section is punishable as a misdemeanor, including imprisonment in county jail for not more than one year and/or a fine of not more than $10,000.

“In addition to Penal Code Section 396, the Governor has signed Executive Order N-44-20, which extends Penal Code 396’s protections until September 4, 2020, and puts additional price gouging protections into place beginning on April 4, 2020.

“The Governor’s Order generally prohibits increasing the price of food items, consumer goods, and medical and emergency supplies, by more than 10 percent of what a seller charged for that item on February 4, 2020. If the seller did not offer the item for sale on February 4, 2020, the seller may not sell the item at a price that is 50 percent greater than what they paid for it, or, if the seller produced the item, they may not sell it for a price that is 50 percent greater than the cost to produce and sell the item.”