A consumer has filed a putative class action against Costco Wholesale
Corp. alleging that the company sells shrimp obtained with slave labor
in Thailand. Sud v. Costco Wholesale Corp., No. 15-3783 (N.D. Cal., filed
August 19, 2015). Citing documentaries and media reports, the complaint
asserts that through its store brand, Kirkland, Costco has been selling
seafood from Thailand “derived from a supply chain that depends upon
documented slavery, human trafficking and other illegal labor abuses.”
Further, Costco “does not advise U.S. consumers, in its packaging or
otherwise, that the supply line for farmed prawns has been tainted by the
use of slave labor in Thailand, and other nearby locations in international
waters, including Indonesia, on Thai-flagged ships, and that there has
been no eradication of this plague.” Knowingly selling such products and
failing to warn the public of the farming conditions allegedly amount to
unlawful business practices, misleading and deceptive advertising, and a
violation of the Consumer Legal Remedies Act. The plaintiff seeks class
certification, an injunction, restitution and costs.

 

Issue 576

About The Author

For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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