Price Gouging by Cal-Maine Foods, Inc.

Press Release

AUSTIN - Texas Attorney General Ken Paxton today 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 percent 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.  

Texans who believe they have encountered price gouging or disaster scams should call the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or 

file a complaint online

. For additional information on disaster scams, please visit our

disaster scams website

.  

Read a 

copy of the filing here

.    

For information on the spread or treatment of Coronavirus (COVID-19), please visit the 

Texas Department of State Health Services

website.  

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Price Gouging and Scammers Taking Advantage of Coronavirus Emergency

Press Release

AUSTIN – As Texans take precautions against exposure to Coronavirus (COVID-19) and prepare for the possibility of self-quarantine if affected, Attorney General Ken Paxton warned that state law prohibits price gouging in the wake of a declared disaster. Governor Greg Abbott today issued a statewide disaster declaration.

“Any person or business selling goods must be aware that they are prohibited by law from engaging in price gouging if they unreasonably raise the cost of necessary supplies at any point during a declared disaster,” said Attorney General Paxton. “My office will work aggressively to prevent disaster scams and stands ready to prosecute any price-gouger who takes advantage of those taking precautions and looking for safety and supplies.”

In addition to price gouging and deceptive trade practices, cyber scams have been reported. Cyber actors may send emails with dangerous attachments or fraudulent website links intended to deceive citizens into revealing sensitive information or donating to false charities. Any social media posts or email with a Coronavirus (COVID-19) subject line, attachment or hyperlink should be treated with caution. The U.S. Department of Homeland Security issued these precautions:  

• Avoid clicking on links in unsolicited emails and be wary of email attachments.

• Use trusted sources – such as legitimate, government websites – for up-to-date, fact-based information about COVID-19.

• Do not reveal personal or financial information in email, and do not respond to email solicitations for this information.  

• Verify a charity’s authenticity before making donations.

Texans who believe they have encountered pricegouging should call the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online at: www.texasattorneygeneral.gov/consumer-protection.

As Texans take precautions against exposure to Coronavirus (COVID-19) and prepare for the possibility of self-quarantine if affected, Attorney General Ken Paxton warned that state law prohibits price gouging in the wake of a declared disaster. Governor Greg Abbott today issued a statewide disaster d...

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