DOJ Investigates Potential Egg Price Fixing Amid Soaring Costs

The U.S. Justice Department has launched an investigation into potential antitrust violations linked to the soaring price of eggs, according to The Wall Street Journal. The inquiry, still in its preliminary stages, is examining whether major egg producers may have coordinated efforts to inflate prices or restrict supply.

Per The Wall Street Journal, the probe comes as egg prices have skyrocketed, leading to significant ripple effects across industries. Some restaurants have been forced to adjust their pricing strategies, while grocery stores have struggled to keep eggs in stock. For instance, Denny’s announced last month that it had implemented a surcharge to offset rising egg costs.

According to the latest Consumer Price Index data from the Bureau of Labor Statistics, egg prices have surged 53% over the past year. On a seasonally adjusted basis, prices spiked 15.2% between December and January alone, marking the sharpest increase in the egg index since June 2015.

Read more: Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets

While the surge in egg prices has been largely attributed to an outbreak of avian flu, which prompted mass culling of poultry, some advocacy groups have raised concerns about potential market manipulation. Farm Action, an advocacy organization, recently urged the Justice Department and the Federal Trade Commission to investigate whether other factors—beyond supply chain disruptions—were driving the price hikes.

As the Justice Department’s investigation unfolds, it remains to be seen whether any legal action will be taken against major egg producers.

Source: The Wall Street Journal