FOX Business’ Madison Alworth discusses the Trump administration’s plan to lower egg prices.
The Trump administration filed a lawsuit against California Gov. Gavin Newsom and other state officials over laws establishing red tape on the production of eggs that ultimately drive up the prices of eggs nationwide.
The Department of Justice (DOJ) announced the lawsuit on Wednesday, calling out Newsom, Attorney General Rob Bonta and other state officials for violating the Supremacy Clause of the U.S. Constitution.
The complaint challenges California laws and regulations that impose costly requirements on farmers, which in turn result in the prices of eggs rising for American consumers. Specifically, the laws prohibit farmers from using agricultural methods commonly accepted that help keep eggs affordable, the DOJ alleges.
The Egg Product Inspection Act sets the standards to ensure eggs and egg products are labeled and packaged properly, the DOJ added, and the Act preempts state laws that impose additional regulatory hurdles.
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Cage-free eggs at a Costco store. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
“Americans across the country have suffered the consequences of liberal policies causing massive inflation for everyday items like eggs,” Attorney General Pam Bondi said. “Under President Trump’s leadership, we will use the full extent of federal law to ensure that American families are free from oppressive regulatory burdens and restore American prosperity.”
The lawsuit alleges that California contributes to the rise in egg prices by imposing red tape on the production of eggs.
“Through a combination of voter initiatives, legislative enactments, and regulations, California has effectively prevented farmers across the country from using a number of agricultural production methods which were in widespread use – and which helped keep eggs affordable,” the lawsuit reads.
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A flock of free-range chickens in a farm pen. (iStock)
California prohibits the sale of eggs that are produced through various accepted practices. The lawsuit said the state’s laws are intended to increase the quality and fitness for human consumption of eggs and egg products sold in California.
“But California’s egg standards do not advance consumer welfare,” the lawsuit reads. “With respect to California’s most recent voter initiative imposing new standards of egg quality, Proposition 12, the California Department of Food and Agriculture has stated in its regulatory analysis that despite the initiative’s purported concern for consumer ‘health and safety,’ the egg standards ‘are not based in specific peer-reviewed published scientific literature or accepted as standards within the scientific community to reduce human food-borne illness . . . or other human or safety concerns.’”
Instead, the lawsuit alleges, California’s regulation of eggs has been effective in raising prices for American consumers.
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A shopper inspects a carton of eggs at a supermarket. (iStock / iStock)
“Indeed, Proposition 12 alone has ‘caused a significant increase’ in egg prices, ‘and therefore led to a sizable reduction in consumer surplus,’” the lawsuit reads. Proposition 12 was approved by voters on Nov. 6, 2018, and added egg standards and animal housing requirements already imposed by the state.
Proposition 12 was intended to increase animal welfare and the quality of eggs for human consumption, and it was driven by activists’ conception of what qualifies as “cruel” animal housing rather than consumer purchasing decisions or science-based food safety and animal welfare standards, the lawsuit claims.
For instance, the proposition imposed living standards for egg-laying hens, prohibiting them from being confined in a space that prevents them from lying down, standing up, fully extending their limbs or turning around freely at all times.
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Additional regulations included providing a minimum of one square foot of usable floor space per hen for multi-tiered and partially slatted systems, and a minimum of 1.5 square feet of usable floor space per hen in single-level floor systems.
The regulations also define a “cage-free housing system” as “an indoor or outdoor controlled environment for egg-laying hens within which hens are free to roam unrestricted; are provided enrichments that allow them to exhibit natural behaviors, including, at a minimum, scratch areas, perches, nest boxes, and dust bathing areas; and within which farm employees can provide care while standing within the hens’ useable floorspace.”
Sales of eggs in California that do not comply with California regulations are considered criminal offenses that carry a penalty of up to a $1,000 fine and 180 days in jail. Violations are also considered “unfair competition,” which could result in civil action for damages.
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“Bureaucratic red tape and unnecessary regulations implemented by the State of California have made the cost of everyday goods, like eggs, less affordable for Americans,” U.S. Civil Division Assistant Attorney General Brett Shumate said. “This Department of Justice will work to free consumers from this regulatory burden and bring economic prosperity to families.”
Newsom’s office did not immediately respond to FOX Business’ request for comment.
