South Carolina Sue 25 restaurant “shrimp fraud” says fraud is threatening their industry
On June 13, the South Carolina Shrimp Association filed a federal lawsuit against 25 Charleston-area restaurants in South Carolina.
According to ABC News 4, shrimp accused restaurants of violating the Lanham Act and the South Carolina Unfair Trade Practice Act to market imported, frozen shrimp for “wild attraction” and “local.”
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Shrimp fraud misleads customers
The revised complaint says this “shrimp fraud” misleads consumers and damages the reputation and goodwill of legitimate lowland shrimp.
“We believe that when we invite our family, friends and our cherished guests to our beautiful downtown, what they deserve is real, real real things — in this case, that means our delicious, unparalleled, unparalleled South Carolina shrimp.”
According to Sead Consulting’s survey, genetic analysis of shrimp from 44 local restaurants showed that 90% of restaurants deceived their customers. The lawsuit found that by selling imported shrimp they claimed to have been caught locally, 25 agencies were found to be “complete fraud” for cheating diners.
Similar SEAD studies on the Gulf Coast show that the “shrimp fraud rate” in Tampa Bay and St. Petersburg, Florida is as high as 96%. Of the 44 tested restaurants, only two served local shrimp.
The Shrimp Association claims these deceptions threaten South Carolina’s seafood brand and undermine the integrity of consumer trust. After all, many clients look forward to the authentic and local food advertised.
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Economic and tourism impacts
In South Carolina, the authenticity of seafood is not a niche issue.
In 2022, visitors spent $27.9 billion across the state, generating $2.6 billion in tax revenue and supporting more than 257,000 jobs.
The coastal dining scene in Lowcountry is an important attraction for tourists. According to Colombia SC’s tourism industry, food and beverages account for 29% of each tourism budget, totaling $487 million.
If customers are misled by institutions, rebuilding consumer trust may require stricter labeling laws. Louisiana has implemented updated seafood labeling laws due to misleading food labeling in restaurants.
Answers and next steps
Several restaurants have publicly denied wrongdoing and misleading customers.
Mount Pleasant Seafood says it has a “receipt to back up” to buy locally and switches to frozen South Carolina shrimp when it is not available.
The eager hotel group highlights its commitment to procurement and transparency. Page’s okra grill was protested and included in the “floor”, noting that “no claim our menu indicates that our shrimps are local or East Coast.”
“Our goal has been to protect South Carolina’s bush industry and adhere to the principle of honesty consumers should have when it comes to advertising. We want to hear any defendants who are ready to work with us to ensure transparency and fairness move forward.”
As the case goes to court, both parties will provide evidence on procurement records, menu marketing and consumer perceptions.
Apart from financial losses, the lawsuit highlights a broader appeal for the preservation of the Lowland Cooking Legacy, a billion-dollar tourism engine that requires “local” shrimp that must come from South Carolina waters.
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This article provides information only and should not be construed as advice. It is without any warranty of any kind.
