Feds sue california over nationwide egg prices

LOS ANGELES, CA — The U.S. Department of Justice filed a federal lawsuit Tuesday against the State of California, challenging the state’s regulations on egg production and sales, including its voter-approved Proposition 12. The suit argues that California’s standards violate federal law and contribute to higher egg prices nationwide.

The complaint, filed in the U.S. District Court for the Central District of California, contends that California has imposed “unnecessary red tape” on egg producers through laws that restrict certain animal husbandry practices. The federal government alleges these restrictions violate the Egg Products Inspection Act (EPIA) by imposing requirements “in addition to or different from” federal egg quality standards.

“Proposition 12 alone has ‘caused a significant increase’ in egg prices, ‘and therefore led to a sizeable reduction in consumer surplus,’” the complaint states, citing economic research.

At the center of the case is the argument that the Supremacy Clause of the U.S. Constitution bars states from enacting conflicting regulations in areas Congress has legislated, such as food safety and labeling. EPIA, passed in 1970, provides nationwide rules for the inspection, labeling, and packaging of eggs to ensure safety and consistency in the market.

California voters approved Proposition 2 in 2008 and Proposition 12 in 2018, both of which restrict how egg-laying hens may be confined. A 2010 law, AB1437, extended these standards by prohibiting the sale of eggs in California that were not produced under those confinement standards, regardless of where they originated.

Federal officials argue that these laws have impacted interstate commerce and egg availability. “California’s regulation of eggs has, however, been effective in raising prices for American consumers,” the complaint says.

The lawsuit names Governor Gavin Newsom, California Department of Food and Agriculture Secretary Karen Ross, California Department of Public Health Director Erica Pan, and Attorney General Rob Bonta as defendants in their official capacities.

The United States seeks a court order to declare the state laws invalid and permanently block their enforcement, citing EPIA’s broad definitions and explicit preemption language.

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