A lawyer for the South Carolina Shrimpers Association has accused a local restaurant of backing out of a sourcing resolution with the group, choosing to instead contest claims alleging widescale misrepresentation of shrimp origin in court.
Earlier this year, Houston, Texas, U.S.A.-based SeaD Consulting conducted genetic testing of shrimp sold at restaurants in Charleston, South Carolina, U.S.A., as part of an ongoing campaign to highlight the amount of foreign shrimp being misleadingly sold as a domestic product across the Southern U.S. The survey found that 40 of the 44 restaurants tested were selling imported shrimp, with 90 percent of tested shrimp falsely advertised as locally sourced according to the Southern Shrimp Alliance.
Shortly after SeaD Consulting unveiled its results, the South Carolina Shrimpers Association announced a lawsuit naming 25 restaurants that allegedly sold foreign shrimp falsely advertised as domestic shrimp. The group claims the restaurants have violated both the federal Lanham Act and the South Carolina Unfair Trade Practices Act.
“Despite having knowledge of the true origins of their product, Restaurant Defendants fraudulently entice customers to dine in their establishments by falsely representing that the shrimp they serve are locally caught,” the lawsuit states. “In so doing, Restaurant Defendants falsely suggest to consumers that they are affiliated with the local industry, that the product being served is representative of local aquaculture, and that dining at their establishments supports the local shrimping industry. In fact, Restaurant Defendants fraudulently enrich themselves to the detriment of the Shrimpers Association, its members, South Carolina’s fisheries, and the public.”
Shortly after the lawsuit was unveiled in June, South Carolina Shrimpers Association Attorney Gedney Howe IV announced that one of the restaurants named in the suit, Hyman’s Seafood, had reached a resolution with the group.
“While we understand the concerns raised, we’ve also listened, learned, and made the decision to do more because we believe in doing right by our customers and by our community,” Hyman’s Seafood’s owners said in a statement shared by Howe at the time.
Howe blamed the misrepresentation on an outside social media team utilized by Hyman’s Seafood to promote their products, noting that “the mistakes made were not malicious.”
However, Hyman’s Seafood has reportedly backed out of that resolution, according to local news outlet WCIV, choosing to instead battle the association’s claims in court.
"While disappointing, this underscores the very challenge we face. Certain restaurants, already serving imported shrimp, are committing significant resources to fight against transparency and accountability in our seafood industry," Howe said. "Our commitment to protecting South Carolina’s shrimping fleet and ensuring consumers know the true origin of their seafood remains unchanged."
The association also announced a resolution with another dining establishment, Mt. Pleasant Seafood, in July, with the restaurant committing to honest labeling.
“We appreciate Mt. Pleasant Seafood’s transparency, responsiveness, and the constructive conversations we’ve had throughout this process,” the South Carolina Shrimpers Association said in a statement. “They have been longtime allies of the local shrimping industry, and their willingness to engage in open dialogue and take proactive steps should be applauded. We are grateful for their support and look forward to continuing to work side by side to preserve and promote the South Carolina shrimping industry.”
Saltwater Cowboys, Dockside Charlie's, and Charleston Crab House have made motions to dismiss the case, claiming the association lacks standing to sue them.
