LEWISBURG — A Virginia-based egg supplier denies allegations it engaged in unfair or deceptive practices by increasing the wholesale price of eggs at the start of the Coronavirus pandemic by almost 300 percent.
On July 14, West Virginia Attorney General Patrick Morrisey's office filed a complaint alleging Green Valley Poultry Farms and owner Dutt & Wagner of Virginia Inc. violated the state’s price gouging law by charging grocery stores exorbitantly higher prices during a state of emergency.
The parent company denies the charges.
Morrisey
"Contrary to the claims made by West Virginia Attorney General Patrick Morrisey, Dutt & Wagner of Virginia, Inc., a family-owned food distributor, has not engaged in unfair or deceptive trade practices nor has it violated the West Virginia Consumer Credit and Protection Act," the company said in a statement to The West Virginia Record. "Rather, Dutt & Wagner took extraordinary steps to ensure continued supply of high-quality eggs to its West Virginia customers in the face of an unprecedented increase in demand and costs caused by the COVID-19 global pandemic.
"Dutt & Wagner stands ready to defend itself from these unfounded accusations so that it may continue its long-standing relationships with its West Virginia customers."
In its complaint filed in Greenbrier Circuit Court, the AG's office alleges the wholesale price of Green Valley Farms eggs increased between 228 and 297 percent – exceeding the cap of no greater than 10 percent during a state of emergency or preparedness. He seeks an immediate court order to ensure the company complies with state law.
“No lawful excuse exists for such an increase,” Morrisey said. “Eggs are a staple for many households. We will always take steps to defend consumers from actions which violate our laws.”
Green Valley Poultry Farms produces 19.5 million shell eggs per year and ranks as Virginia’s largest producer.
In West Virginia, the lawsuit alleges Dutt & Wagner charged inflated prices to 34 grocery stores and restaurant suppliers – including some chains such as Piggly Wiggly and Food Lion – in Cabell, Fayette, Greenbrier, Kanawha, Mason, McDowell, Mercer, Nicholas, Ohio, Raleigh and Upshur counties.
For instance, the lawsuit alleges Dutt & Wagner increased the wholesale price of a dozen Green Valley Farms medium eggs from $0.79 on Feb. 24 to $2.35 on March 30 – nearly 297.5 percent.
The AG's lawsuit cites a U.S. Department of Agriculture report in stating that his investigation found no evidence of an egg supply shortage.
The lawsuit also takes issue with Dutt & Wagner’s reliance upon a business publisher in setting prices. The AG's office argues the publisher’s reporting does not exempt Dutt & Wagner from West Virginia’s price gouging statute.
The civil complaint sets forth charges of unfair price practices and violating the West Virginia Consumer Credit and Protection Act.
The complaint seeks a court order forcing Dutt & Wagner to pay restitution to consumers who paid above the authorized price and a civil penalty of $5,000 for each violation of the price gouging statute, along with an injunction that prohibits any similar conduct.
The AG's Consumer Protection Division remains actively engaged in pursuing inquiries related to the Coronavirus pandemic. More than 60 complaints have been referred to investigators and dozens of subpoenas and letters have been sent to businesses whose conduct may have violated the state’s price gouging law or landlords whose eviction threats may have underplayed the need for a court order.
Spokesman Curtis Johnson said the AG's office has received more than 1,000 inquiries involving alleged price gouging, landlord-tenant issues, event/travel cancellation and other matters related to the Coronavirus pandemic.
The AG's Consumer Protection Hotline – 1-800-368-8808 – remains open to assist with claims of price gouging, COVID-19 scams or other ways in which bad actors may try to take advantage of consumers during the pandemic. People also can file complaints at www.wvago.gov.
Greenbrier Circuit Court case number 20-C-68