A New Lawsuit Accuses Retailers Like Trader Joe’s, Costco, And Walmart Of Marking Up Prices On Eggs In California
A new class-action lawsuit is accusing major retailers like Costco, Trader Joe's, and Walmart of price gouging eggs in California amid the COVID-19 outbreak.
The lawsuit, which was filed in San Francisco federal court last week, according to Bloomberg Law, accuses these retailers of inflating the price of eggs during the coronavirus pandemic.
“As in any time of economic turmoil, there are those who seek to profit from the misery of millions,” the suit reads. “Defendants, who are producers, wholesalers, and retailers of eggs, comprise one such set of actors.”
The suit names the previously mentioned retailers as well as some smaller regional stores and even farms. It was filed by "a group of consumers" who believe that stores took advantage of California Governor Gavin Newsom’s state of emergency declaration on March 4 to inflate egg prices.
"As in any time of economic turmoil, there are those who seek to profit from the misery of millions," the suit reads. "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 suit does note, however, it "does not assert that each and every defendant engaged in price-gouging. Rather, plaintiffs assert that, at a minimum, some of these defendants did so.”
Multiple retailers denied the accusations made in the lawsuit.
"Costco Wholesale has not engaged in price gouging in the sale of eggs. To the contrary, it has lodged complaints with governmental authorities that egg suppliers have charged Costco increased prices that did not seem in line with feed and production costs of those suppliers," the retailer said in a statement to Delish.
“While I can’t comment on pending litigation, I can confirm that we have not raised our prices on eggs during the time referenced, even while our costs were rising,” Kenya Friend-Daniel, a Trader Joe’s representative, told Bloomberg Law.
Delish also reached out to Walmart and Whole Foods for comment but did not immediately hear back.
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