- with readers working within the Consumer Industries industries
Texas Attorney General Ken Paxton announced that his office filed a price gouging lawsuit against Cal-Maine Foods, Inc., the nation's largest egg producer. Cal-Maine's eggs are sold under brand names such as Egg-Land's Best, Land O' Lakes, Farmhouse, and 4-Grain.
The Texas AG's lawsuit alleges that Cal-Maine increased its prices by 300% in violation of the Texas Deceptive Trade Practices Act. The DTPA prohibits, among other things, taking advantage of a disaster declared by the Governor by offering, demanding in connection with the sale, and/or selling at an exorbitant or excessive price, fuel, food, medicine, or other necessities. The Texas AG alleged that Cal-Maine "is simply charging more because it can, or, more specifically, because the pandemic caused market demand to jump."
In announcing the lawsuit, the Texas Attorney General said, "No one is exempt from price gouging laws in Texas, including suppliers of grocery stores and pharmacies . My office will not tolerate any person or business taking advantage of hardworking Texans. Those who violate the Texas Deceptive Trade Practices Act will be met with the full force of the law."
This lawsuit is an important reminder that not only do many price gouging laws cover more than face masks and hand sanitizer, they often apply to more than just retailers who are selling directly to consumers. Regulators across the country are closely watching whether prices are being hiked up because of the coronavirus pandemic -- and are taking aggressive action. For more information about state price gouging laws, check out or prior blog post.
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