TEXAS, USA — Texas Attorney General Ken Paxton filed a lawsuit Thursday against Cal-Maine Foods, Inc., the dominant egg supplier in Texas.
The lawsuit was filed after the company took unfair advantage of the Governor’s COVID-19 disaster declaration and rose the price of eggs by around 300 percent without any supply issues or significant disruptions, according to a press release from the Attorney General's Office.
Price gouging laws apply to any person or entity that sells necessities, such as food, at an excessive price after a disaster has been declared by the Governor or the President. This prohibition includes those who supply retailers.
“No one is exempt from price gouging laws in Texas, including suppliers of grocery stores and pharmacies,” Attorney General Paxton said. “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.”
Under the Texas Deceptive Trade Practices Act, any price-gougers may be required to reimburse consumers and may be held liable for civil penalties of up to $10,000 per violation, with an additional penalty of up to $250,000 if the affected consumers are elderly, according to the release.
Texans who believe they have encountered price gouging or disaster scams should call the Office of the Attorney General’s at (800) 621-0508 or file a complaint online. For additional information on disaster scams, please visit the disaster scams website.
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