Yolo County DA reaches settlement with Walmart over egg ‘price gouging’ during pandemic
A settlement was reached in a case filed by the Yolo County District Attorney’s Office against Walmart for “price gouging” egg products, which was prohibited in California during the COVID-19 pandemic, prosecutors said.
Yolo Superior Court Judge Samuel T. McAdam entered a judgment settling the case on Dec. 17 in regards to Walmart’s Great Value brand egg products.
As part of the settlement, Walmart agreed to pay partial reimbursement for investigation costs and civil penalties, which totaled $70,798, the District Attorney’s Office announced Wednesday in a news release. Prosecutors said Walmart also agreed to pay $10,200 to the Yolo County Food Bank to help those in need.
District Attorney Jeff Reisig said the investigation by his office’s Consumer Fraud and Environmental Protection Division allowed for open communication with Walmart representatives.
“Our office is proud that communications with Walmart remained professional and constructive, that price discrepancies were corrected, and the Yolo Food Bank will have additional funds to support its mission,” Reisig said in the news release.
In response to the COVID-19 pandemic, Gov. Gavin Newsom on April 4, 2020, issued an executive order mandating certain items, including eggs, be subject to rules related to “price gouging,” according to the news release. Generally, the order prohibits sellers from increasing prices on food, consumer goods, medical or emergency supplies and other items by more than 10 percent.
Soon after the governor’s order, the District Attorney’s Office received a consumer complaint about egg prices at a Walmart store in Yolo County. As prosecutors launched an investigation, Walmart’s corporate offices began their own investigation, the District Attorney’s Office said.
Prosecutors said “Walmart did not admit any wrongdoing, promptly corrected its pricing structure,” and remained cooperative throughout the investigation.
This story was originally published January 5, 2022 at 6:18 PM.
