AMZN Sued Over Alleged ‘Greenwashing’ Of Seafood Labels — Consumers Challenge Amazon’s Sustainability Claims, Says Report

Plaintiffs reportedly say that labels such as “dolphin safe,” “responsibly sourced,” and “MSC Certified Sustainable Seafood” lack adequate support.

• The complaint targets many seafood products, including brands such as Bumble Bee, Chicken of the Sea, StarKist and Amazon’s 365 by Whole Foods Market.
• The lawsuit seeks compensatory damages, punitive damages and restitution under Washington consumer protection law.
• Consumers said they would have paid less, or not purchased the products at all, had they known the alleged sourcing practices.

Amazon.com Inc. (AMZN) has reportedly been sued by consumers who accused the retailer of misrepresenting the environmental benefits of seafood sold on its platform, a practice known as greenwashing. The proposed class action alleges Amazon’s sustainability marketing misled shoppers about the environmental impact of its seafood products, Reuters reported.

Shares of AMZN closed more than 15% higher on Friday before slipping around 0.5% in after-hours trading.

AMZN’s Seafood Sustainability Claims Challenged

The proposed class action filed in Seattle federal court alleges that labels containing phrases such as “dolphin safe,” “responsibly sourced,” “sustainable,” “wild caught,” and “MSC Certified Sustainable Seafood” misled consumers into believing Amazon's seafood sourcing causes minimal harm to oceans and the environment, according to the Reuters report.

The plaintiffs said those representations are unsubstantiated or materially false because most fishing vessels are not publicly tracked, while some obscure their whereabouts by disabling electronic devices known as transponders.

They also alleged that at least one-fifth of imported wild-caught seafood is not responsibly or sustainably sourced.

According to the complaint, “Amazon nevertheless markets the greenwashed seafood products using broad sustainability messaging without providing disclosures necessary to prevent consumer deception.”

Lawsuit Targets Major Seafood Brands

The lawsuit targets many tuna, salmon, and other seafood products sold under brands including Bumble Bee, Chicken of the Sea, StarKist, and Amazon's own 365 by Whole Foods Market, reported Reuters.

The plaintiffs said they would not have bought the seafood products, or would have paid less for them, had Amazon disclosed their “true sustainable nature.” The lawsuit seeks compensatory damages, punitive damages and restitution for alleged violations of Washington consumer protection laws.

AMZN Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for AMZN was ‘extremely bullish, unchanged in the past 24 hours, while message volume was ‘high’ at the time of writing.

Over the past seven days, message volume around the stock surged 976%, while the ticker’s watcher base rose 0.3%.

AMZN shares are up more than 17% year to date.

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