Texans can expect to receive a windfall of two million eggs, thanks to a settlement between Attorney General Ken Paxton and Cal-Maine Foods, Inc., one of the largest egg suppliers in the state. This agreement comes as a resolution to a lawsuit filed by Paxton's office against Cal-Maine in April 2020, for allegations of price gouging. According to the Attorney General's announcement, during the COVID-19 pandemic, the company was accused of jacking up the price for eggs by nearly 300%.
"My office will crack down on any corporation illegally raising prices on Texans," Paxton stated in the announcement. Cal-Maine was accused to have tried to take advantage of the public during an unprecedented crisis, and Paxton believes that the agreement they've reached serves both to rectify the company's past actions and safeguard against future price gouging.
The specifics of the settlement involve a significant donation from Cal-Maine: 180,000 dozen large brown and/or white eggs, which must be distributed to food banks across Texas within the next 120 days. These eggs will be to provided to several local food banks, with quantities ranging from 2,000 to 30,000 dozen, based on the needs of each food bank. The North Texas Food Bank and Houston Food Bank are among those to receive the highest quantity of egg donations.
Furthermore, as part of the settlement terms, Cal-Maine is now barred from attempting to demand a price or to sell eggs at a rate that would breach the Texas Deceptive Trade Practices Act during any designated disaster period, preventing them from possibly engaging in similar price manipulation as seen in 2020.
This landmark settlement not only offers immediate relief in the form of over two million free eggs for Texans in need but also enforces consumer protection measures aimed to deter and prevent unethical price surges that can occur in times of crisis. Food banks across Texas are preparing to receive and distribute these donations, ensuring a means of support to communities still feeling the economic impacts of the pandemic.
