Following the unprecedented surge in demand for eggs in March and April as a result of panic buying, the transitory increase in wholesale unit revenue was characterized by a number of states Attorneys General as “price gouging”.  Lawsuits were filed against producers. Online Merchants Guild v Cameron is scheduled for a hearing before the Sixth Circuit Federal Appeal Court.  The case will determine the validity of state laws relating to emergency declarations issued during the early phase of the COVID-19 pandemic.

The UEP amicus brief was drafted by Chris Ondeck, the Counsel for the Association, describing circumstances leading to the demand for eggs in the face of logistic and other restraints limiting re-stocking of shelves.  The brief also pointed to inconsistencies among over 40 individual state price-gouging laws raising doubt as to their constitutionality with respect to the Commerce Clause.

In any event the price surge was short-lived and prices declined sharply consistent with the Law of Supply and Demand.