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When parts of Los Angeles were ravaged by wildfires last month, some unscrupulous landlords tried to take advantage of the desperate scramble for temporary housing, raising rents by 50% or more in some cases, according to authorities.

After Hurricanes Milton and Helene hit the southeast U.S. last fall, there were hundreds of complaints of overcharging for gas, water, groceries and hotel stays. And during COVID-19, the Department of Justice created an entire taskforce to prosecute those who were behind steep markups on face masks and other protective equipment.

All of these instances were labeled price gouging, a term you’ve probably heard or read about in the news. But in a period of persistent inflation, what exactly determines when it’s price gouging rather than just the expected byproduct of a supply and demand imbalance?

Context matters here. Price gouging refers to capitalizing on sudden needs by raising prices to unreasonably high levels. It usually happens during a natural disaster or other emergency, when a victim is desperate and feels they have no choice but to pay $99 for a case of water, $10 for a gallon of gas, or triple the normal rate for a hotel room.

In short, price gouging is localized and opportunistic. Inflation, on the other hand, reflects broad economic shifts over a longer period of time and typically affects everyone. (It’s worth noting, however, that some economists object to bans on price gouging, seeing them as disruptive to the free-market forces that limit shortages.)

There is no federal law explicitly prohibiting price gouging. But 39 states have specific laws against it, and in most states it’s considered a violation of laws against unfair or deceptive trade practices, according to the National Conference of State Legislatures. Some states define price gouging as an increase of 10%, 15% or 20% over the pre-crisis price, while others simply say it must be excessive.

So what? If there’s a hurricane, wildfire or other declared emergency in your area, beware of costs that suddenly spike. You can report price gouging to your state’s attorney general to investigate, and offenders may face fines or even imprisonment.

Related Reading

•   Los Angeles Landlords Jack Up Rent by as Much as 124% — Flouting Price Gouging Laws During Deadly Wildfires (USA Today)

•   N.Y. Attorney General Warns Businesses Against Price Gouging Amid Rising Egg Costs (Associated Press via Spectrum News)

•   How to Identify and Report Price Gouging (U.S. PIRG Education Fund)

Image credit: Bernie Pesko/SoFi Source: iStock/CentralITAlliance

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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New product offering creates America’s most rewarding financial membership, all in one app;
‘Power of Plus’ sweepstakes offers chance to achieve one of America’s top financial ambitions

SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, announced more than eight new benefits to SoFi Plus, offering its members $1,000+ in annual value. SoFi Plus, the company’s premium financial membership, now offers exclusive access to preferred pricing on products and services, complimentary financial planning, rewards, and special events. SoFi members can unlock SoFi Plus for $10 a month or at no cost with direct deposit, no minimum balance required. To celebrate the launch, SoFi has launched the ‘Power of Plus’ sweepstakes, where both new and existing SoFi Plus members can enter for a chance to win one of six of America’s top financial ambitions.

“With the new offerings from SoFi Plus, SoFi has created America’s most rewarding financial membership—one that’s more than just about products and services. It’s about empowering our members to realize their ambitions,” said Anthony Noto, CEO of SoFi. “SoFi Plus now delivers the strongest suite of premium benefits designed to meet our members where they are and help them get their money right. We’re giving our members unmatched access to the resources they need to confidently shape their financial futures.”

New benefits and preferred pricing for SoFi Plus members:

• Unlimited 1% Invest rewards match: Members with a recurring SoFi Invest deposit enjoy an unlimited 1% match paid in rewards points.
• Unlimited 1:1 financial planning: Members can schedule unlimited appointments with financial planners at no cost, valued at $250 per session.
• $1K discount on home loan closing: When approved for a SoFi home loan mortgage, members can enjoy a $1,000 discount at the closing of their eligible home loan on top of the already competitive rates they receive from SoFi.
• Student loan refinance exclusive rate: Members receive an exclusive discounted rate on new student loan refinances.
• 3% cash back on hotels with SoFi Travel powered by Expedia: SoFi Plus Members can earn three times the rewards when using any card for hotel bookings through the SoFi Travel portal, powered by Expedia.
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• Enhanced savings on Hello Privacy and Trust & Will: Members receive a 50% discount on HelloPrivacy’s tools to protect members’ data and remove their information from risky sites, as well as a $200 discount for a Trust, making it easier for members to plan for their future with confidence

SoFi Plus members will continue to benefit from these exclusive benefits:

• Preferred IPO allocations: Members with a SoFi Invest brokerage account can receive priority IPO allocations, providing members with access to IPOs before they’re traded on the public market, a perk that has historically been reserved for high net worth individuals.
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To sign up for SoFi Plus and to learn more, visit www.sofi.com/sofi-plus/.

‘Power of Plus’ Sweepstakes will fund six of America’s most desired ambitions:

To celebrate the launch of SoFi Plus’ new premium benefits, six lucky members will win one of America’s top financial ambitions. In a recent survey, SoFi asked people across the country about their biggest financial ambitions. The Top 2025 financial goals included saving for a major purchase such as a house (44%), reducing debt (49%), as well as planning for retirement (35%). These findings helped shape SoFi Plus’ new premium benefits and the ‘Power of Plus’ ambitions sweepstakes, which runs from February 11 to May 14, 2025. See Official Rules.

SoFi Plus members can enter to win:

• A new home: $400,000 toward purchasing a home.
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• Wedding: $35,000 to plan or pay down a dream wedding.
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Enter the ‘Power of Plus’ sweepstakes by signing up here and selecting a financial ambition for a chance to win. Existing members can boost their chances with additional entries by referring family or friends and sharing the sweeps on their social media. No purchase necessary, mail-in entries available. See Official Rules.*

To learn more about SoFi and SoFi Plus visit https://www.sofi.com/sofi-plus/ and follow SoFi on Instagram and X for all SoFi educational content, news and product updates.

About SoFi

SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its over 10.1 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.

SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit https://www.sofi.com or download our iOS and Android apps.

Disclosures:

*NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Open only to legal residents of the 50 US/DC, 18+. Void where prohibited by law. Sweepstakes ends at 11:59 pm ET on 5/14/25. Subject to Official Rules, including alternate and free methods of entry, prizes, limits, and odds, click here. Sponsor: Social Finance LLC (“SoFi”) 234 First Street, San Francisco, CA 94105

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

The January Effect

The first inflation data of the new year is upon us this week, and as usual, investors will look to it for clues on broader price trends. However, the upcoming Consumer Price Index (CPI) release also brings into focus what some market watchers refer to as the “January effect.” Here’s what that means.

In a nutshell, the January effect is the tendency for hot inflation data in the first month of the year. Considering that economists deploy sophisticated seasonal adjustment techniques to remove such patterns from the data, this tendency shouldn’t even exist, yet it does.

Here are some potential reasons: Businesses usually update their prices at the beginning of a year, but just how much they decide to raise them depends a lot on the macro environment and broader behavioral forces. Moreover, the January effect has actually intensified post-COVID, as businesses and consumers dealt with high inflation.

This residual seasonality presents a big challenge in interpreting economic data at a time where the stakes are high and questions about the Federal Reserve’s future policy path are rampant. For context, investors don’t expect the next interest rate cut until June or July, but a hot inflation read could push those expectations out toward the end of the year. On the other hand, a weaker print could give the Fed the confidence to resume cutting rates as soon as their next meeting in March.

Economic and Earnings Calendar

Monday

•   January New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.

•   Earnings: Arch Capital Group (ACGL), Cincinnati Financial (CINF), Incyte (INCY), Loews (L), McDonald’s (MCD), ON Semiconductor (ON), Rockwell Automation (ROK), Vertex Pharmaceuticals (VRTX)

Tuesday

•   January NFIB Small Business Optimism: This measures how small business owners feel about current and future economic conditions.

•   Fedspeak: Cleveland Fed President Beth Hammack will discuss the economic outlook. New York Fed President John WIlliams will deliver keynote remarks followed by moderated Q&A at a Pace University Economics Society event.

•   Earnings: American International Group (AIG), Assurant (AIZ), Carrier Global Corp (CARR), DuPont de Nemours (DD), Ecolab (ECL), Eversource Energy (ES), Edwards Lifesciences (EW), Fidelity National Information Services (FIS), Gilead Sciences (GILD), Humana (HUM), Coca-Cola (KO), Leidos Holdings (LDOS), Marriott International (MAR), Masco (MAS), S&P Global (SPGI), Welltower (WELL)

Wednesday

•   January Consumer Price Index: The CPI is one of the most popular indicators for tracking consumer price trends and is a marquee release for market watchers.

•   January Treasury Statement: This summarizes the U.S. federal government budget by tracking government revenues and expenditures.

•   Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•   Fedspeak: Fed Chair Jerome Powell will testify to the U.S. House Committee on Financial Services on the Fed’s Semi-Annual Monetary Policy Report. Atlanta Fed President Raphael Bostic will discuss the economic outlook at an Atlanta Fed event.

•   Earnings: Albemarle (ALB), Biogen (BIIB), CME Group (CME), Cisco (CSCO), CVS Health (CVS), Dominion Energy (D), Equinix (EQIX), Exelon (EXC), Generac Holdings (GNRC), Interpublic Group of Companies (IPG), Kraft Heinz (KHC), MGM Resorts International (MGM), Martin Marietta Materials (MLM), NiSource (NI), Paycom Software (PAYC), Rollins (ROL), Smurfit WestRock (SW), Tyler Technologies (TYL), Ventas (VTR), Westinghouse Air Brake Technologies (WAB), Waters (WAT), Williams Companies (WMB)

Thursday

•   January Producer Price Index: The PPI tracks price trends that producers face and is down significantly from its peak earlier in the cycle.

•   Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

•   Earnings: Airbnb (ABNB), Ameren (AEE), American Electric Power (AEP), Applied Materials (AMAT), CBRE Group (CBRE), Deere & Company (DE), Digital Realty Trust (DLR), DTE Energy (DTE), Duke Energy (DUK), DaVita (DVA), DexCom (DXCM), Federal Realty Investment Trust (FRT), GoDaddy (GDDY), GE HealthCare Technologies Inc (GEHC), Global Payments (GPN), Howmet Aerospace (HWM), Ingersoll Rand (IR), Iron Mountain (IRM), Moody’s (MCO), Motorola Solutions (MSI), Palo Alto Networks (PANW), PG&E (PCG), PPL (PPL), Republic Services (RSG), Molson Coors Brewing (TAP), West Pharmaceutical Services (WST), Wynn Resorts (WYNN), Zebra Technologies (ZBRA), Zoetis (ZTS)

Friday

•   January Retail Sales: This measures spending at retail stores and is a key indicator of consumer demand.

•   January Import/Export Price Indexes: These indexes track the changes in the prices of nonmilitary goods and services traded between the U.S. and the rest of the world.

•   January Industrial Production and Capacity Utilization: The industrial sector accounts for much of the cyclical swings in economic activity.

•   Earnings: Crown Castle International (CCI), Moderna (MRNA)

Image: Bernie Pesko/SoFi Source iStock

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.