LOS ANGELES (Legal Newsline) - A federal judge has given the green light to a class action lawsuit alleging the maker of Texas Pete has fooled shoppers into thinking the hot sauce was made in Texas - despite the company's argument that the back label shows it is based in North Carolina.
Los Angeles federal judge Maame Ewusi-Mensah Frimpong on July 31 denied T.W. Garner's motion to dismiss the case, which drew considerable media attention when it was filed earlier this year.
The lawsuit says consumers will pay more for a hot sauce if they believe it was made in Texas and T.W. Garner took advantage of that by putting the state in its brand name, as well as using a lone star and a cowboy on the product label.
These actions could be seen as affirmations of fact or promises that T.W. Garner either made the products in Texas or used ingredients sourced from there. The back label only lists T.W. Garner's Winston-Salem, N.C., address.
"A reasonable consumer would most likely read the reference to 'Winston-Salem, NC 27105' as a designation of T.W. Garner's corporate address, particularly since it expressly does not say 'manufactured in Winston-Salem, NC,' 'Product of Winston-Salem, NC,' or even 'Origin: Winston-Salem, NC,'" Frimpong wrote.
"Therefore, while a back label 'can ameliorate any tendency of the label to mislead,' this one does not, given that at best it 'conflict[s] with, rather than confirm[s], [the] front label."
Frimpong's ruling seemingly spoils any plan T.W. Garner would have in the future to cite a recent ruling from the U.S. Court of Appeals for the Ninth Circuit that says shoppers should read the back label on products if they are confused about its ingredients or origin.
That case concerned bottles of Pantene Pro-V Nature Fusion shampoo that featured an avocado on the front but were made of synthetic ingredients, which were listed on the back label.
The Texas Pete case says Garner Foods "adorns" its hot sauce with "distinctly Texan imagery," like a lone star and a cowboy.
"Defendant concocted this false marketing and labeling scheme specifically because it knows the state of Texas enjoys a certain mysticism and appeal in the consumer marketplace and is known for its quality cuisine, spicy food, and hot sauce in particular," the suit says.
None of that adds up to a legal claim for relief, Garner Foods argued in its rejected motion to dismiss, citing the "reasonable consumer" standard that marketing class actions are held to. Frimpong wrote it was too early in the case to apply the "reasonable consumer" test.
"A reasonable consumer viewing the product's label is fully capable of understanding that the Texas Pete brand name is just that - a brand name," the company's lawyers wrote.