Why Are Egg Labels So Confusing? How Supermarkets Can Help

The confusion over eggs is real. A 2024 survey at Ahold Delhaize, which owns major brands like Food Lion and Stop & Shop, revealed that most customers are confused by existing egg labels. A majority of the almost 700 survey participants assumed—incorrectly—that labels like “natural,” “all natural,” and “farm fresh” mean those eggs come from chickens living in open barns with no cages. Similarly, a 2023 survey of over 600 Kroger customers found that “over 40 percent of Kroger customers are buying eggs from caged hens, believing they are cage-free.” As the research shows, egg labels are misleading customers—and retailers aren’t doing enough to bridge the gap.

Confusing egg carton labels, explained

Imagine going to the egg section and finding a clear explanation of all the eggs on the shelf:

• Grades AA, A, and B: Grades reflect egg quality and appearance, not animal welfare. While Grade AA eggs have the thickest whites, Grade B eggs have the thinnest.
• Cage-Free: Hens are not confined in wire “battery cages” where they can’t extend their wings without hitting the walls or another bird. Some cage-free farms provide additional space, environmental enrichments, and litter, while other cage-free farms keep hens in crowded indoor enclosures with no access to natural light. Cage-free status is regulated by the USDA.
• Free-Range: Hens have some outdoor access, but conditions and durations vary. Free-range status is regulated by the USDA.
• Pasture-Raised: Hens spend significant time outdoors. Many pasture-raised certifications require farms to cover fields with vegetation, limit flock size to prevent overcrowding, provide nest boxes or perches, and prohibit beak trimming or forced molting. Pasture-raised status is not regulated by the USDA.
• Organic: Organic eggs must come from “uncaged hens that are free to roam in their houses and have access to the outdoors,” so cage-free, free-range, and pasture-raised eggs can also be organic, but caged eggs cannot be organic. Organic status is regulated by the USDA.
• Antibiotic-Free: The vast majority of laying hens in the United States are not given antibiotics. Farmers generally avoid using antibiotics in egg-laying hens because they can interfere with egg production. "Antibiotic-free" is the industry standard rather than a special feature.
• Hormone-Free: It's illegal in the United States to give hormones to chickens raised for egg production. This means all eggs, regardless of how they're labeled, are hormone-free. "Hormone-free" claims on egg cartons don't differentiate the product from other eggs on the shelf.
• Conventional, Farm Fresh, All-Natural, Naturally Raised, Animal Friendly, and Happy Hens: These are marketing terms without standardized meanings. They are not regulated by the USDA or the FDA.

By providing clear, in-store information about these labels, retailers can help customers make informed decisions aligned with their values.

Egg companies under fire for misleading labels

Recent legal actions highlight the risks of unclear labeling.

In August 2024, the US District Court for the Northern District of Illinois dismissed a proposed class action lawsuit against Kroger alleging that “farm fresh eggs” were misleadingly labeled. The plaintiff, Adam Sorkin, an Illinois consumer, argued that the term “farm fresh” suggested that hens were “living a natural life on a farm, pecking and playing in fields,” and not confined to cages. He paid a premium price for those “farm fresh” eggs ($1.49+ per dozen) and wouldn’t have bought them, or paid as much for them, if it hadn’t been for the deceptive labeling. Ultimately, the court dismissed the case on the grounds that the plaintiff had "not plausibly shown that his definition of 'farm fresh' aligns with the expectations of a reasonable consumer." While Kroger won this case, it underscores the importance of clear communication. Retailers should proactively clarify terms like “farm fresh” to avoid potential legal challenges and maintain customer trust.

Other companies have faced similar scrutiny. In 2018, Trader Joe’s settled a lawsuit arguing that the grocer was violating California consumer protection laws by selling cage-free eggs with labels showing hens foraging outside in pastures.

To mitigate these risks, retailers should:

1. Ensure their labeling aligns with legal standards and consumer expectations, particularly for their own brands of eggs
2. Provide supplementary information in-store to clarify ambiguous terms
3. Work with suppliers to ensure marketing imagery accurately reflects production methods

Customers deserve better

Consumers are increasingly demanding more ethical and transparent food options. This trend is reflected in recent industry moves. In October 2024, Cal-Maine Foods, the largest egg producer in the US, announced a $40 million investment to expand cage-free egg production. They plan to add 1 million cage-free hens by summer 2025, with further expansion planned for fall 2025. This expansion is a direct response to growing customer demand and upcoming state mandates for cage-free eggs. With cage-free hens now making up 40% of the US flock, Cal-Maine reports seeing a sharp rise in profits and a 20% increase in specialty egg sales.

Retailers have a unique opportunity to align with these consumer preferences by offering more cage-free and ethically-sourced options. Moreover, clear labeling and in-store education can empower customers to make choices that align with their values. This kind of transparent communication about sourcing and animal welfare can build trust and loyalty among increasingly conscious consumers.