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Recently, ten seafood restaurants received warning letters from the Federal Trade Commission (FTC) over misleading advertising practices. These warnings focused on restaurants falsely promoting their seafood as "wild-caught" or "American-sourced" when, in reality, it was farm-raised and imported from foreign sources. This crackdown comes in response to increasing complaints from the U.S. seafood industry about deceptive claims made on menus and in advertisements.

Restaurant Decor Under Scrutiny

In addition to menu language, the FTC flagged “eat local” slogans and restaurant décor, including photos, apparel, and symbols, as potential violations if they imply a false sense of locally sourced fare. These types of implied claims could mislead customers, violating federal law and damaging consumer trust. The FTC’s guidance signals that not just the words but the entire experience of dining at a restaurant can contribute to a misleading portrayal of the seafood’s origins.

The Source of the Issue

The Southern Shrimp Alliance points out that while country-of-origin labeling for shrimp is mandatory in grocery stores, restaurant menus often do not follow the same rules, leaving sourcing unclear to consumers. Some states do have labeling requirements, but these vary widely. Marketing materials that depict local fishermen or fishing practices are also under scrutiny, as they can further contribute to consumer confusion about the origin of seafood.

U.S. Seafood Import Statistics

The focus on truth in seafood advertising reflects the growing reality of seafood imports. In 2020, more than 79% of seafood consumed in the U.S. was imported, and by 2023, the trade deficit in seafood had expanded to $20.3 billion. As reliance on foreign seafood continues to rise, ensuring transparency in sourcing is more important than ever.

What This Means for Restaurants

Restaurants need to be vigilant about how they advertise and present their seafood offerings. Menu descriptions and marketing materials should clearly reflect the true source of seafood to avoid misleading consumers and violating FTC regulations. Businesses that continue to falsely advertise could face penalties and damage to their reputation. Staying compliant with FTC guidelines will help maintain customer trust and loyalty.