US Seafood Restaurants Cautioned About False Claims of Locally Caught Products, FTC Commissioner States

By Leah Douglas

A U.S. Federal Trade Commission (FTC) official announced on Wednesday that major seafood restaurant chains in the country have been cautioned about potential crackdowns on misleading claims regarding locally sourced seafood. This comes in response to complaints from the domestic fishing industry regarding deceptive menu offerings and advertisements.

Approximately 80% of seafood consumed in the U.S. is imported, according to the National Oceanic and Atmospheric Administration. However, many restaurants attract customers by promoting seafood that is purportedly freshly caught in local waters.

FTC Commissioner Alvaro Bedoya sent letters on Tuesday to the ten highest-grossing seafood restaurant chains, including Red Lobster, Long John Silver’s, and Legal Sea Foods, notifying them that false advertising regarding locally caught seafood may be subject to investigation.

"This serves as a reminder to companies that all forms of communication with consumers must be accurate in their overall impression," Bedoya stated.

In September, the FTC released guidance indicating that restaurant décor, menu descriptions, and social media posts implying that they serve local seafood could be deemed misleading if the restaurants are actually serving imported products.

Bedoya has visited shrimpers in the Gulf Coast, who have experienced declining numbers in their industry, partly due to competition from cheaper imported seafood.

The Southern Shrimp Alliance, which advocates for small- and mid-size shrimp businesses, reported that over 90% of shrimp imports come from countries such as India, Ecuador, Indonesia, and Vietnam. The group has called for strengthened enforcement by the FTC, highlighting challenges faced by its members in competing with lower-priced imports.