Hagens Berman: California Walmart Shoppers Sue Over Shell Egg False Advertising, Seek Refund

Class-action lawsuit states Walmart and its egg supplier lied to consumers about the treatment of hens

Walmart and one of its California egg suppliers, Cal-Maine Foods, are facing a class-action lawsuit alleging the two parties lied to consumers about the treatment and condition of hens laying Walmart store-brand Organic Marketside eggs, according to Hagens Berman.

Consumers paid high prices for what they were told were eggs laid by hens "free to roam, nest and perch in a protected barn with outdoor access." However, according to the lawsuit, Walmart and Cal-Maine knew the hens were in fact confined inside industrial barns with enclosed porches, never able to touch the soil or vegetation surrounding the barns. Cal-Maine is the largest producer of shell eggs in the U.S., and Walmart the largest retailer in the world.

If you bought store-brand Organic Marketside eggs from Walmart, find out more about the class-action lawsuit here.

Walmart's Marketside brand eggs sell for $2.98, whereas its Organic Marketside eggs laid by hens with "outdoor access" sell for $3.97 – a third more.

The suit filed Jan. 8, 2018, in the U.S. District Court for the Northern District of California seeks reimbursement for consumers who paid high prices for Walmart's Organic Marketside store-brand eggs, which were sold as being laid by hens with outdoor access. The suit also seeks an injunction from the court to force Walmart and Cal-Maine to end their deceptive marketing of Organic Marketside eggs.

"Walmart is the largest and most profitable retailer in the world, and it chose to knowingly scam those trying to do good with their purchasing power," said Elaine Byszewski, a partner of Hagens Berman. "We believe Walmart and Cal-Maine knew that despite the promise of ‘outdoor access' on the cartons of eggs they sold, the hens that laid their store-brand eggs were confined inside industrial barns."

Attorneys' investigations of a Cal-Maine egg farm revealed that less than 1 percent of the flock located at the massive Chase, Kansas egg farm were able to even look outside. The location has the capacity to house 400,000 hens.

"Our investigators have seen these facilities first-hand," Byszewski said. "Had consumers known the truth about what ‘outdoor access' meant – stuck inside with no access to nearby pasture – they either would not have purchased them or would have paid less."

"Surely this isn't what consumers have in mind when they read ‘farm fresh,' ‘free to roam,' and ‘outdoor access,'" she added. Rather, studies show that consumers believe "outdoor access" means a majority of animals at any given time have access to open pasture and vegetation throughout the day.

The class action adds that the majority of consumers (77 percent) have stated they are concerned about the welfare of animals raised for food, including laying hens. In addition, "more than two-thirds (69 percent) of consumers pay some or a lot of attention to food labels regarding how the animal was raised." The suit says Walmart and Cal-Maine knew this, and exploited consumers' concerns.

Find out more about the class-action lawsuit against Walmart.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with 11 offices across the country. The firm has been named to the National Law Journal's Plaintiffs' Hot List eight times. More about the law firm and its successes can be found at https://www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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