Walmart, Costco Class Action Lawsuit: Egg Prices Tripled During COVID-19

Costco, Whole Foods, Trader Joe’s, Walmart, and other retailers have been accused of illegally raising egg prices during the coronavirus pandemic.

Plaintiffs in the class action lawsuit claim that egg prices have nearly tripled since California Governor Gavin Newsom declared a state of emergency. Allegedly, these price increases take advantage of consumers during this crisis and violate California law.

The egg prices class action lawsuit was filed by several California egg purchasers against Costco, Whole Foods, Trader Joe’s, Walmart, Amazon, Albertsons, Kroger Co., and other stores and farms.

Unfortunately, the plaintiffs say that the “secretive process of price-setting” prevents them from gathering information about how each defendant contributed to the issue.

Although not all of these defendants are directly accused of price gouging, the plaintiffs argue that they all could be involved.

Have you been subjected to paying high egg prices at Costco, Whole Foods, Trader Joe’s, Walmart, and other grocery retailers? Get legal help by clicking here.

“As in any time of economic turmoil, there are those who seek to profit from the misery of millions,” the egg prices class action lawsuit claims.

“Defendants, who are producers, wholesalers, and retailers of eggs, comprise one such set of actors seeking to unfairly profit from the increased consumer demand for eggs in the midst of the ongoing crisis.”

The coronavirus has had significant impacts on consumers and their wellbeing. In addition to the stress surrounding the potentially deadly virus, many people have been affected by state-issued health orders.

On March 4, California Governor Newsom declared a state of emergency due to the outbreak. Under his declaration, Californians who are not working essential jobs have been ordered to stay home. Unfortunately, states of emergencies such as the California order can have significant financial consequences.

“The economic effect of the government-mandated and voluntary measures to combat the pandemic has been extreme. Many are out of work. Many have had their wages and salaries reduced,” the egg prices class action lawsuit notes. “Oil prices are at their lowest point in decades. The stock market is in freefall.”

However, even amidst widespread financial suffering, the defendants have allegedly chosen to increase egg prices. Since the outbreak’s onset, egg prices have reportedly tripled. The plaintiffs call the price gouging a “despicable and illegal practice” that takes advantage of consumers.

To support their claim that the increase of egg prices is illegal, plaintiffs in the class action lawsuit point to a California law which prohibits price increases of a product by more than 10 percent during a state of emergency or local emergency.

This law aims to protect Californians from “excessive and unjustified increases” for goods and services that are considered “vital and necessary for the health, safety and welfare of consumers.”

According to the plaintiffs, the tripling of egg prices falls under the scope of this law and is therefore illegal.

Based on these violations, the plaintiffs argue that the defendants are also in violation of California’s Unfair Competition Law.

“Because the price of eggs have risen more than 180% during the COVID-19 emergency, it is clear that some or all of the defendants have raised their prices to an extent that violates the law,” the plaintiffs argue in their coronavirus class action lawsuit.

On March 17, California Attorney General Xavier Becerra issued a statement that wholesalers and manufacturers – not just retailers – are required to comply with the state’s price gouging law. Based on this declaration, the plaintiffs argue that all of the defendants could be held liable under the law.

“During this difficult public health emergency, it’s imperative that we stop price gouging anywhere in the supply chain,” said Attorney General Becerra in a statement.

“The Department of Justice has zero tolerance for price gouging against Californians — or our hospitals, medical providers or first responders. To all Californians, our ask is simple: if you see something, say something.”

The plaintiffs seek to represent a Class of California consumers who purchased eggs during the state of emergency which was initiated on March 4. According to the plaintiffs, more than 40 million Californians could be included in this Class.

The egg prices class action lawsuit seeks restitution, permanent injunction, declaratory relief, court costs, and attorneys’ fees.

The consumers and proposed Class are represented by Robert Salgado, Dargan Ware, John E. Norris and Andrew Wheeler-Berliner of Davis & Norris LLP.

The Egg Prices Increase Class Action Lawsuit is Adrienne Fraser, et al. v. Cal-Maine Foods Inc., et al., Case No. 3:20-cv-02733, in U.S. District Court for the Northern District of California.

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