USDA scrambles to investigate egg lobby over vegan startup scandal

Guardian report revealing efforts by government-backed American Egg Board to sink
food startup Hampton Creek forces inquiry into potentially illegal activities

Sam Thielman in New York
Friday 23 October 2015 21.09 BST

The US Department of Agriculture (USDA) has opened an investigation into the American Egg Board (AEB) after revelations by the Guardian that the USDA-appointed group conducted a months-long campaign against a San Francisco food startup called Hampton Creek.

The investigation comes after Utah senator Mike Lee called for an investigation into reports that the government-backed egg lobby had organized a concerted effort to tackle Hampton Creek, a company described in leaked emails as a “major threat” and “crisis” for the $5.5bn-a-year egg industry.

“(R)ecent news reports have brought to light a series of emails, obtained under the Freedom of Information Act (Foia), that contain compelling evidence that AEB leadership, including the Egg Board’s president and CEO, may have violated the federal laws and administrative regulations governing checkoff programs,” Lee wrote in a letter to agriculture secretary Tom Vilsack, calling for the investigation.

A USDA official confirmed an investigation was now under way by its agricultural marketing service (AMS) arm, which carries out the day-to-day oversight of boards.

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Members of AEB leadership are alleged to have tried to prevent the sale of Hampton Creek’s product Just Mayo at Whole Foods; to have advised Unilever on its lawsuit against the company (including suggesting Unilever solicit action from the Food and Drug Administration); and to have assessed the company’s patents for flaws.

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