Texas Attorney General Ken Paxton has filed a lawsuit against Cal-Maine Foods, Inc., the dominant egg supplier in Texas, for taking unfair advantage of the Governor’s COVID-19 disaster declaration and raising the price of eggs by around 300% without any supply issues or significant disruptions. Price gouging laws apply to any person or entity selling necessities, such as food, at an exorbitant or 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,” said Attorney General Paxton. “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.