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Are You Paying Extra for Eggs? Lawsuits Accuse Producers of Price Gouging | Are You Paying Extra for Eggs? Lawsuits Accuse Producers of Price Gouging |
(about 16 hours later) | |
With Americans cooking much more at home, demand has grown for eggs — to scramble, fry, bake or crack into any number of meals. But it will cost you. | With Americans cooking much more at home, demand has grown for eggs — to scramble, fry, bake or crack into any number of meals. But it will cost you. |
The tripling in price of a dozen regular eggs in many parts of the country — to an excess of $3 — has prompted various lawsuits aimed at egg producers and sellers. | The tripling in price of a dozen regular eggs in many parts of the country — to an excess of $3 — has prompted various lawsuits aimed at egg producers and sellers. |
Amid a variety of cases of inflated prices across the United States, those focused on the humble egg are among the most sweeping, despite what at first glance appears to be a relatively modest sum. | Amid a variety of cases of inflated prices across the United States, those focused on the humble egg are among the most sweeping, despite what at first glance appears to be a relatively modest sum. |
The Texas attorney general and a group of private individuals in California filed suit separately in late April against the largest egg producer in the United States for what they call excessive, unfair, illegal profits during the coronavirus pandemic. | The Texas attorney general and a group of private individuals in California filed suit separately in late April against the largest egg producer in the United States for what they call excessive, unfair, illegal profits during the coronavirus pandemic. |
The California lawsuit also threw in other producers, giant supermarket chains like Whole Foods and Costco, plus major egg wholesalers, for a total of 25 defendants. | The California lawsuit also threw in other producers, giant supermarket chains like Whole Foods and Costco, plus major egg wholesalers, for a total of 25 defendants. |
“As in any time of economic turmoil, there are those who seek to profit from the misery of millions,” read the complaint in the suit, which was filed in the U.S. District Court for the Northern District of California. | “As in any time of economic turmoil, there are those who seek to profit from the misery of millions,” read the complaint in the suit, which was filed in the U.S. District Court for the Northern District of California. |
It all goes back to March, as the pandemic gathered force and shoppers stampeded down supermarket aisles, stripping them of goods deemed essential including toilet paper, hand sanitizer and, yes, eggs. | It all goes back to March, as the pandemic gathered force and shoppers stampeded down supermarket aisles, stripping them of goods deemed essential including toilet paper, hand sanitizer and, yes, eggs. |
The average wholesale price for Grade A large eggs surged from $1.01 to $3.07 per dozen in March, according to the U.S. Department of Agriculture. The average price in Texas rose to $3.18, with the price of a dozen large brown eggs climbing as high as $3.44 in April, the lawsuit said. | The average wholesale price for Grade A large eggs surged from $1.01 to $3.07 per dozen in March, according to the U.S. Department of Agriculture. The average price in Texas rose to $3.18, with the price of a dozen large brown eggs climbing as high as $3.44 in April, the lawsuit said. |
The complaint filed by Ken Paxton, the Texas attorney general, accused the nation’s largest egg producer, Cal-Maine Foods, headquartered in Jackson, Miss., of inflating egg prices 300 percent, calling the increase “exorbitant, excessive and unjustified.” | The complaint filed by Ken Paxton, the Texas attorney general, accused the nation’s largest egg producer, Cal-Maine Foods, headquartered in Jackson, Miss., of inflating egg prices 300 percent, calling the increase “exorbitant, excessive and unjustified.” |
The suit, filed in Harris County District Court, also named Wharton County Foods, a Cal-Maine subsidiary in Texas. | The suit, filed in Harris County District Court, also named Wharton County Foods, a Cal-Maine subsidiary in Texas. |
California law sets a maximum 10 percent price increase for goods during a state of emergency, which Gov. Gavin Newsom declared on March 4. The Texas law lacks a specific parameter, but the spirit is similar. Gov. Greg Abbott first declared a state of emergency on March 13. | California law sets a maximum 10 percent price increase for goods during a state of emergency, which Gov. Gavin Newsom declared on March 4. The Texas law lacks a specific parameter, but the spirit is similar. Gov. Greg Abbott first declared a state of emergency on March 13. |
Eggs are a cheap source of protein, which makes them especially important with millions of people added to the unemployment rolls every week and with meat becoming scarcer. | Eggs are a cheap source of protein, which makes them especially important with millions of people added to the unemployment rolls every week and with meat becoming scarcer. |
If an increase to more than $3 for a carton seems modest, perhaps a bit of math is in order. | If an increase to more than $3 for a carton seems modest, perhaps a bit of math is in order. |
On average, Americans consume about 293 eggs per year, according to the U.S.D.A. Californians eat even more, an average of 300 per person. With a population of 40 million people, that works out to roughly one billion eggs per month. | On average, Americans consume about 293 eggs per year, according to the U.S.D.A. Californians eat even more, an average of 300 per person. With a population of 40 million people, that works out to roughly one billion eggs per month. |
The lawyers in California, who filed a class-action suit, contend that redress should cover every person in the state who bought eggs during the state of emergency. Texas is also seeking restitution. Even if that works out to $5 to $20 per consumer, it would be a significant sum. | The lawyers in California, who filed a class-action suit, contend that redress should cover every person in the state who bought eggs during the state of emergency. Texas is also seeking restitution. Even if that works out to $5 to $20 per consumer, it would be a significant sum. |
It is not yet clear, however, whether the courts will accept the cases, especially in California, where the possible number of consumers affected is unusually large. | It is not yet clear, however, whether the courts will accept the cases, especially in California, where the possible number of consumers affected is unusually large. |
The Texas lawsuit contends that Cal-Maine, which owns its entire production and distribution process, faced no supply issues or other disruptions to drive up costs. It is a “powerhouse” both in Texas and nationally, the suit said, producing one-fifth of the eggs in the United States under brand names including Eggland’s Best, Land O’Lakes, Farmhouse and 4-Grain. | The Texas lawsuit contends that Cal-Maine, which owns its entire production and distribution process, faced no supply issues or other disruptions to drive up costs. It is a “powerhouse” both in Texas and nationally, the suit said, producing one-fifth of the eggs in the United States under brand names including Eggland’s Best, Land O’Lakes, Farmhouse and 4-Grain. |
The company strongly denied the allegations in both lawsuits. “Cal-Maine has not exploited this tragic national pandemic for gain,” it said in a statement, contending, among other issues, that it bought eggs on the open market to meet orders during the peak demand period. | The company strongly denied the allegations in both lawsuits. “Cal-Maine has not exploited this tragic national pandemic for gain,” it said in a statement, contending, among other issues, that it bought eggs on the open market to meet orders during the peak demand period. |
In California, various defendants either declined to comment or rejected the allegations. “This case has no merit,” said Kenya Friend-Daniel, the public relations director for Trader Joe’s, in an email. The popular chain was later dropped from the lawsuit. | In California, various defendants either declined to comment or rejected the allegations. “This case has no merit,” said Kenya Friend-Daniel, the public relations director for Trader Joe’s, in an email. The popular chain was later dropped from the lawsuit. |
Costco issued a statement denying any price gouging and saying it had lodged complaints with government agencies over prices charged by egg suppliers. | Costco issued a statement denying any price gouging and saying it had lodged complaints with government agencies over prices charged by egg suppliers. |
Updated June 16, 2020 | Updated June 16, 2020 |
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | |
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
The consumer protection law under which the California suit was filed puts the onus on the defendants to prove that they were not price gouging, said Deborah Hensler, a specialist in class-action lawsuits at Stanford University Law School. | The consumer protection law under which the California suit was filed puts the onus on the defendants to prove that they were not price gouging, said Deborah Hensler, a specialist in class-action lawsuits at Stanford University Law School. |
“They are suing everybody,” Dr. Hensler said. “They did not want to put all their eggs in one basket.” | “They are suing everybody,” Dr. Hensler said. “They did not want to put all their eggs in one basket.” |
The California lawsuit was brought by a relatively small Alabama firm that uses its website to appeal to consumers who think they have been defrauded. The firm did not respond to requests for comment. | The California lawsuit was brought by a relatively small Alabama firm that uses its website to appeal to consumers who think they have been defrauded. The firm did not respond to requests for comment. |
Eggs have remained in high demand since the pandemic erupted, although prices, always volatile, have eased somewhat as people have started stockpiling less. Overall, the U.S.D.A. estimates that average wholesale prices for regular eggs in 2020 will be 35 percent more than in 2019, or about $1.27 per dozen. | Eggs have remained in high demand since the pandemic erupted, although prices, always volatile, have eased somewhat as people have started stockpiling less. Overall, the U.S.D.A. estimates that average wholesale prices for regular eggs in 2020 will be 35 percent more than in 2019, or about $1.27 per dozen. |
In spring, the appeal of eggs usually sinks after the Easter bunny hops away, according to the U.S.D.A., but that did not happen this year. | In spring, the appeal of eggs usually sinks after the Easter bunny hops away, according to the U.S.D.A., but that did not happen this year. |
The prosaic needs of cooking at home quite likely played a role in the demand, even beyond those who consider the pandemic a chance to develop their inner chef. | The prosaic needs of cooking at home quite likely played a role in the demand, even beyond those who consider the pandemic a chance to develop their inner chef. |
The Los Angeles Times, for example, published a cooking series for beginners called “How to Boil Water” that included a recipe for fried eggs, albeit with crispy edges. (Spoiler alert: Fry the eggs in already hot oil.) | The Los Angeles Times, for example, published a cooking series for beginners called “How to Boil Water” that included a recipe for fried eggs, albeit with crispy edges. (Spoiler alert: Fry the eggs in already hot oil.) |
Meanwhile, on Twitter, someone suggested perhaps the egg recipe for the moment. It is basically poached eggs in bubbling tomato sauce. | Meanwhile, on Twitter, someone suggested perhaps the egg recipe for the moment. It is basically poached eggs in bubbling tomato sauce. |
The name? “Eggs in Purgatory.” | The name? “Eggs in Purgatory.” |
Susan C. Beachy contributed research. | Susan C. Beachy contributed research. |