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Advertising Law Updates

| 1 minute read

Texas AG Settles With Cal-Maine Foods Over Price Gouging Claims

Last month, Cal-Maine Foods reached a settlement with Texas Attorney General Ken Paxton, resolving allegations that the company engaged in price gouging in connection with the company's sale of eggs during the pandemic.  

In April 2022, the Texas AG sued Cal-Maine, alleging that the company had illegally raised the price of eggs by around 300% during the pandemic.  Texas law prohibits companies from taking advantage of a disaster declared by the state's governor by selling fuel, food, medicine, lodging, building materials, construction tools, and other necessities at an “exorbitant or excessive price.” 

As part of the settlement, Cal-Maine agreed to donate more than 2 million eggs to food banks across Texas.  

In announcing the settlement, Paxton said, "My office will crack down on any corporation illegally raising prices on Texans.  Cal-Maine tried to take advantage of the people of Texas during the COVID-19 pandemic, and this settlement is an important step towards securing justice for the company’s unethical actions. Our efforts to hold Cal-Maine accountable have secured reforms that will help prevent any further illegal price gouging and over two million free eggs that will be distributed by food banks across the state.” 

 

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advertising law updates, price gouging, texas, pricing