Some Costco, Whole Foods, and Trader Joe's stores hiked up egg prices amid the pandemic, a lawsuit alleges

Shoshy Ciment

  • Costco, Whole Foods, and Trader Joe's are among some of the grocery chains that were hit with a lawsuit alleging they hiked up the prices of eggs during the pandemic.

  • The lawsuit, which was filed on April 20 in San Francisco federal court and obtained by Bloomberg, alleges that retailers gouged prices on eggs in California.

  • In a statement to Business Insider, a Trader Joe's representative said, "While I can't comment on pending litigation, I can confirm that we have not raised our prices on eggs during the time referenced, even while our costs were rising."

  • Costco and Whole Foods did not immediately return Business Insider's request for comment.

Major grocery chains in California, including Costco, Trader Joe's, and the Amazon-owned Whole Foods stores, have been hit with a class-action lawsuit that alleges that they gauged the price of eggs during the pandemic.

The class-action lawsuit, which was filed on April 20 in San Francisco federal court by a group of consumers and obtained by Bloomberg, alleges that certain retailers raised their prices on eggs in California. In addition to Costco, Trader Joe's and Whole Foods, the lawsuit targets some smaller grocery chains and farms.

Egg prices in California surged in April amid national demand for the grocery staple. Eggs were an essential item reported to be selling out at retailers across the country. Some stores even placed purchase limits on the number of eggs that could be bought per customer.

The lawsuit was filed in the U.S. District Court for the Northern District of California and claims that retailers used California governor Gavin Newsom's March 4 emergency declaration as an excuse to hike up the prices on eggs, Bloomberg reported.

"As in any time of economic turmoil, there are those who seek to profit from the misery of millions," the lawsuit says, according to Bloomberg. "Defendants, who are producers, wholesalers, and retailers of eggs, comprise one such set of actors."

The lawsuit does not allege that every defendant participated in price-gauging and recognizes that some retailers may not have been involved in such a scheme.

In a statement to Business Insider, a Trader Joe's representative said, "While I can't comment on pending litigation, I can confirm that we have not raised our prices on eggs during the time referenced, even while our costs were rising."

Costco and Whole Foods did not immediately return Business Insider's request for comment.

Advertisement