Reputation Risks Related to Selling Mislabeling of Fish

An additional risk for importers may occur if an importer's customer is doing testing and the importer is not; the customer may discover mislabeled seafood. If this happens, the customer will likely demand the importer refund the entire order or reimburse the price difference, or litigate. In most cases, the importer will discover this after it is too late for the importer to recuperate their loss by avoiding payment to their suppliers. However, even if the customer did not demand a refund or litigate, the customer would likely choose to purchase product elsewhere in the future, thus costing the importer a customer (and maybe a bad name in the industry).

Because a lost customer, regulatory fine, loss due to economic fraud committed against the importer or a lawsuit can be devastating, importers can benefit greatly by species identification of seafood purchased overseas.


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