On June 13, the South Carolina Shrimpers Association filed a federal lawsuit in the District of South Carolina against 25 Charleston-area restaurants.
The shrimpers accused the eateries of violating the Lanham Act and the South Carolina Unfair Trade Practices Act by marketing imported, frozen shrimp as “wild‑caught” and “local,” according to ABC News 4.
Don’t miss
Shrimp fraud misleads customers
The amended complaint alleged that this “shrimp fraud” misleads consumers and damages the reputation and goodwill of legitimate Lowcountry shrimpers.
“We believe that when we invite our family, our friends, and our cherished guests to our beautiful Lowcountry, they deserve nothing less than the real, authentic thing — and in this case, that means our delectable and incomparable, wild-caught South Carolina shrimp,” said South Carolina Shrimpers Association vice president Bryan Jones.
According to an investigation by SeaD Consulting, the genetic analysis of shrimp from 44 local eateries revealed that 90% of restaurants deceived customers. The suit found 25 establishments to be “outright fraudulent” for deceiving diners by selling imported shrimp which they claimed were locally caught.
Similar SeaD studies along the Gulf Coast revealed “shrimp fraud rates” as high as 96% in Tampa Bay and St. Petersburg, Florida. Only two out of 44 tested restaurants served truly local shrimp.
The Shrimpers Association claims these deceptions threaten the integrity of South Carolina’s seafood branding and undermine consumer trust. After all, many customers are expecting authentic and local food as advertised.
Read more: Americans are ‘revenge saving’ to survive — but millions only get a measly 1% on their savings. Here’s how to quickly earn 280% more on your cash
Economic and tourism impact
The authenticity of seafood is not a niche concern in South Carolina.
In 2022, visitors spent $27.9 billion across the state, generated $2.6 billion in tax revenue and supported over 257,000 jobs.
The Lowcountry’s coastal dining scene is a significant attraction among tourists. According to Columbia SC Tourism, food and beverages accounted for 29% of each tourist’s budget, which amounts to $487 million.
If customers are misled by establishments, rebuilding consumer trust may require stricter labelling laws. Louisiana has implemented an updated seafood labeling law due to misleading food labels in restaurants.
Responses and next steps
Several restaurants have publicly denied wrongdoing and misleading customers.
Mount Pleasant Seafood says it has “receipts to back up” its local purchases and switches to frozen local South Carolina shrimp when fresh is unavailable.
Crave Hospitality Group stressed its commitment to sourcing and transparency. Page’s Okra Grill protested being “floored” by inclusion and noted it “does not claim on any of our menus that our shrimp is all local or East Coast.”
“Our aim has always been to protect South Carolina’s shrimping industry and to uphold the principle that consumers deserve honesty in advertising. We hope to hear from any defendant who is prepared to work with us to ensure transparency and fairness moving forward,” said associate representative attorney Gedney Howe IV to WRDW.
As the case heads to court, both sides will present evidence on sourcing records, menu marketing and consumer perception.
Beyond financial damages, the litigation underscores a broader call to preserving the Lowcountry’s culinary legacy, a billion-dollar tourism engine that demands “local” shrimp must come from South Carolina waters.
What to read next
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Source link
