Mowi has agreed to settle a class action case alleging deceptive marketing practices for USD 1.3 million (EUR 1.1 million).
The complaint, filed by New York City-based catering firm Neversink General Store last November, alleged that the company’s marketing messages such as “sustainable” and “eco-sustainable” relating to its Ducktrap smoked salmon brand were false. Ducktrap River of Maine is a Mowi subsidiary.
The company also represents that the smoked salmon originates from Maine; However, Mowi’s salmon is raised in net pens outside the U.S., according to the complaint filed in the U.S. District Court for the Southern District of New York.
“Defendants use an ecologically dangerous method of salmon farming known as ‘open net-pen aquaculture,’ in which more than 70,000 salmon may be confined in a single ‘pen,’” Neversink wrote in its original complaint. “This practice has been banned in numerous jurisdictions due to concerns over environmental risks.”
Mowi also uses antibiotics and a semi-synthetic insecticide, emamectin benzoate, in its salmon production, according to the complaint.
A Mowi spokesperson declined to comment on the settlement, which was filed on 10 February. The federal court judge presiding over the case has not signed off on the settlement.
Gary Mason, an attorney representing Neversink, confirmed the settlement agreement in an email to SeafoodSource.
“Plaintiffs are pleased that we were able to reach a settlement that provides significant benefits to Neversink and the members of the class,” Mason said.
In preliminary documents filed in the case, the Global Aquaculture Alliance defended Mowi’s claims.
“Sustainability representations like those made by Ducktrap are not misleading to a reasonable consumer simply because Ducktrap’s products are sourced from salmon farms,” GAA wrote. “Instead, to plausibly allege that such representations are deceptive, a plaintiff must allege something more, such as failure to abide by best practices. Neversink has not done so.”
GAA’s Best Aquaculture Practice standards, utilized by Mowi and many other seafood companies, set forth sustainability practices that Mowi follows, GAA said.
“Neversink apparently wishes to substitute its own standards in place of the relevant generally accepted standards, such as BAP, and to thereby create through the judicial process a new (and unrealistic) baseline for responsible aquaculture practices,” the organization said.
Photo courtesy of Ducktrap River of Maine
