Seafood Substitution and Mislabeling: WTP for a Locally Caught Grouper Labeling Program in Florida

Abstract

Abstract Recent media reports have documented the fraudulent mislabeling of grouper at several Florida restaurants whereby customers were sold lower-valued species instead of grouper. This article uses data from 400 seafood eating Floridians to determine awareness of reported substitution, effects on consumption, and willingness to pay (WTP) for a product integrity labeling program. Using a novel frequency-based polychotomous choice (PC) contingent valuation format, designed for products that are purchased often, WTP is estimated based on level of commitment to the product integrity labeling program. Sixty-two percent of respondents were aware of the reported substitution, 57% of those changed their seafood consumption, and respondents were willing to pay an average premium of $0.83 to $3.18 for grouper entrees at restaurants with a product integrity label. The factors that helped to explain the change in consumption and WTP were identified and can be used to help improve current labeling and marketing ef...