In June 2021, a class action lawsuit was filed in California in which restaurant greenwashing was alleged due to sustainability statements made on Red Lobster’s menus. Now, Red Lobster has filed pleadings with the court seeking to have the case dismissed, arguing that plaintiffs failed to establish any colorable claim on which they can prevail. While it remains to be seen what the court will do with the lawsuit, the critical takeaway from the litigation is that any industry, not just the consumer goods industry, must realize that marketing buzzwords such as “sustainable”, “environmentally friendly”, and “responsibly sourced” are in the crosshairs. Now more than ever, globally situated companies of all types that are advertising, marketing, drafting ESG statements, or disclosing information as required by regulatory agencies must pay extremely close attention to the language used in all of these types of documents, or else run the risk of enforcement action or lawsuits.
The 2020 Red Lobster lawsuit alleged that “Seafood With Standards” statements on Red Lobster’s menus regarding the sustainability, traceability and responsible sourcing of its lobster and shrimp were false. Instead, the lawsuit argues, the Maine lobster served by Red Lobster are not sustainably sourced and the farmed shrimp used by the restaurant chain are not responsibly sourced. The lawsuit alleges that Red Lobster’s purveyors instead use environmentally damaging and...
PHOTOS: COMPETITION AND CONSUMER COMMISSION OF SINGAPORE SINGAPORE – Three online retailers have been caught using misleading features to influence shoppers by Singapore’s consumer and competition...