NY AG Challenges Increased Egg Prices During Coronavirus Outbreak

Hillandale Farms and its subsidiaries were recently hit with a lawsuit from the New York AG, challenging high egg prices during the coronavirus outbreak.

New York Attorney General Letitia James says that Hillandale violated price gouging laws when it hiked up egg prices in March and April following an influx of COVID-19 cases in New York. Allegedly, more than 4 million egg cartons were sold at these inflated prices to sellers such as grocery chains, military facilities, and wholesale distributors. As a result, everyday consumers were reportedly forced to pay higher prices as indirect purchasers.

“As this pandemic ravaged our country, Hillandale exploited hardworking New Yorkers to line its own pockets,” Attorney General James said in a statement.

“In less than two months, Hillandale made millions by cheating our most vulnerable communities and our service members, actions that are both unlawful and truly rotten. I will always stand up for working people, especially when they are taken advantage of by corporate greed.”

The lawsuit details specifics about the alleged price gouging, showing the exponential increase in egg prices during the pandemic.

In January, Hillandale reportedly sold large white eggs to Western Beef supermarkets for between $0.59 and $1.10. Months later in April, the cost was allegedly as high as $2.93 while the pandemic raged in New York and caused thousands of deaths. Similarly, Hillandale allegedly sold eggs to the West Point Military Academy for $0.84 in January, only to turn around and charge $3.15 in April.

The egg prices lawsuit contends that Hillandale has generated revenues of around $8 million by selling eggs in New York during the coronavirus outbreak. Of these profits, $4 million was allegedly obtained through illegal price gouging, James argues.

The egg prices lawsuit states that these increased prices are particularly harmful considering the fact that eggs are a staple in the diet of most Americans.

In a crisis such as the coronavirus outbreak, consumers will reportedly make sure to buy eggs and other essentials in case they are unable to get a hold of these items in the future. With coronavirus cases around the country, this “explosive demand” is reportedly seen on a national level.

“It’s bad enough that hunger is soaring in New York because of the collapse of the economy and the closure of school meals programs, but it is even worse when food companies increase hunger by using a national crisis to astronomically [raise] prices through illegal price gouging,” said CEO of Hunger Free America Joel Berg in a statement.

“Eggs are a key staple in the diet of most Americans, so [it’s] particular galling that a company would value improper profits over allowing Americans to eat their product.”

James argues that Hillandale knows that eggs are in high demand during the coronavirus outbreak, and has intentionally raised egg prices in order to take advantage of the crisis.

According to James’ egg prices lawsuit, there was no real excuse for these increased prices. Instead, the increased egg prices were allegedly implemented by Hillandale not “to offset any increased costs — which it acknowledges have not affected its prices — but simply to line its own pockets and profit off New Yorkers during a time of crisis.”

This is not the first time that retailers have been accused of raising egg prices during the coronavirus outbreak. In April, plaintiffs alleged that egg prices in California nearly tripled since a state of emergency was declared by Governor Gavin Newsom. Allegedly, the increased egg prices affected customers of Costco, Whole Foods, Trader Joe’s, Walmart, Amazon, Albertsons, Kroger Co., and other retailers.

James has taken similar action for other price gouging issues – including the allegedly illegal price increases of Lysol products. Wholesale supplier Quality King allegedly increased prices for Lysol products to up to five times higher than prices before the pandemic. This allegedly increased their profit margin from 21 percent before the pandemic to more than 95 percent in the midst of the coronavirus outbreak.

Have you paid high egg prices during the coronavirus outbreak? Share your experiences in the comment section below.

The state of New York of represented by Attorney General Letitia James; John P. Figura of the Office of the Attorney General of the State of New York; and by Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine

The Egg Prices Coronavirus Outbreak Lawsuit is New York v. Hillandale Farms Corp., et al., Case No. unavailable, in the Supreme Court of the State of New York, County of New York.

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