Many seafood restaurants entice customers with local, fresh-caught fare. They might use phrases like “eat local” or “try the catch of the day” on menus and signage. Now, it appears that the Federal Trade Commission (FTC) is putting restaurants on notice about claims, false or implied, related to the source of the seafood served on the menu.
Under FTC regulations updated in September, restaurants are prohibited from misleading customers about where their seafood items come from. Restaurants cannot use social media posts, menu descriptions, or promotional signs that imply seafood was caught in local waters unless the claim is true. Even images of fishermen and fishing boats can get a restaurant in trouble with the agency.
On Tuesday, the FTC sent a reminder to several large restaurant companies, including Legal Sea Foods and Long John Silver’s, of the previously released guidance. Even Red Lobster got the notice despite closing several locations. According to Reuters, Alvaro Bedoya, an FTC commissioner, told restaurants that the method of communication does not matter, but “the net impression of that communication needs to be accurate.”
Why Is the FTC Cracking Down on Seafood Restaurants?
About 80% of seafood comes from outside the U.S., according to the National Oceanic and Atmospheric Administration. The Southern Shrimp Alliance (SSA) reportedly claims about 90% of shrimp are caught and shipped from waters surrounding India, Ecuador, Indonesia, and Vietnam.
When a restaurant implies its seafood is locally caught but buys often-cheaper seafood imports, small and medium local shrimp businesses suffer. As such, the SSA has been advocating for tougher enforcement of potentially untrue claims about fresh-caught seafood.
“The domestic shrimp industry cannot compete when restaurants can simply lie to consumers about their shrimp being from the United States when it’s not,” said John Williams, executive director of the SSA. “Strong enforcement against deceptive marketing levels the playing field for American fishermen and we appreciate the FTC for taking action.”
Part of the FTC’s mandate is to protect the public from deceptive tactics used by businesses to gain an unfair advantage. If eateries buy farmed or frozen, imported seafood but imply otherwise, they may be breaking the law.
