Litchfield Egg Producer To Donate A Million Eggs to Settle Price Gouging Claims

(KNSI) – A Central Minnesota egg producer has reached a settlement with the state’s attorney general’s office over accusations of price gouging on eggs at the start of the pandemic. Minnesota Attorney General Keith Ellison announced the resolution of a lawsuit against Litchfield-based Sparboe Farms.

According to a press release, the agreement calls for Sparboe to donate 90,000 dozen eggs – more than 1,000,000 eggs in total – to Minnesota nonprofit organizations to combat hunger and food insecurity throughout Minnesota. Sparboe must ensure that the eggs are of the same quality as those at stores in Minnesota. The egg maker has 18 months to meet its obligation.

Under Executive Order 20-10, price gouging on essential items, like food was illegal for the COVID-19 peacetime emergency, which was in place from March 21, 2020, until July 1, 2021.

The lawsuit accused the company of tripling its egg prices in March 2020 as consumer demand for eggs skyrocketed in the early days of the COVID-19 pandemic.

The suit alleged that Sparboe increased its prices despite Executive Order 20-10 and that Sparboe could not point to increased costs that would have justified the massive price increases.

According to the National Council of State Legislatures, Minnesota is one of 11 states with no law against price-gouging.

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