FTC Cracks Down on Misleading Seafood Ads

The U.S. Federal Trade Commission (FTC) is cautioning major seafood restaurant chains against making false claims about locally caught seafood. After complaints from the domestic fishing industry, the FTC emphasized the importance of accurate advertising to prevent misleading consumers about locally sourced fare.

The U.S. Federal Trade Commission (FTC) announced on Wednesday that it will intensify scrutiny on major seafood restaurant chains for false claims of locally caught fare. This action follows complaints from the domestic fishing industry alleging misleading menu descriptions and advertising.

The National Oceanic and Atmospheric Administration reports that the U.S. imports about 80% of its seafood. However, some restaurants attract patrons by claiming their seafood is sourced from nearby waters. FTC Commissioner Alvaro Bedoya sent letters on Tuesday to the 10 highest-grossing seafood restaurants, including Red Lobster, Long John Silver's, and Legal Sea Foods, warning against false advertising.

Bedoya emphasized that all consumer communications must be accurate, including restaurant decor, menu descriptions, and social media posts. He cited the FTC's September guidance, which clarified that misleading representations of local fare could be illegal if the seafood isn't domestic.

This summer, Bedoya met with Gulf Coast shrimpers struggling due to import competition. Over 90% of shrimp imports are from countries like India and Ecuador, as reported by the Southern Shrimp Alliance. The group has called for stricter FTC enforcement to help domestic businesses compete with cheaper imports.

(With inputs from agencies.)