Texas Pete’s hot sauce faced a class-action false advertising lawsuit over its product’s name and imagery. Although Texas Pete’s hot sauce is manufactured in North Carolina by Garner Foods, plaintiffs allege that the brand’s name and packaging imply a Texas origin, resulting in deception to consumers, who may have paid a price premium for a Texan hot sauce. How might consumer surveys be used to measure consumer perception?
False Advertising Claims
Philip White, a California resident, purchased a bottle of Texas Pete’s hot sauce. He later observed that, despite the product’s name and associated imagery, the hot sauce was manufactured in North Carolina. He filed a complaint alleging that Garner Foods intentionally misled consumers by branding the product as Texan.
The complaint includes visual representations on the packaging, including the name “Texas Pete’s,” the depiction of a cowboy with a lasso, and the presence of a lone star. According to the plaintiffs, these features communicate that the product is made in Texas. The plaintiffs sought damages based on the theory that they paid a higher price for a product made in and originating from Texas.
Garner Foods disputed the allegations, arguing that the label clearly states that the product is made in North Carolina. The company explained that the name “Texas Pete’s,” first used in 1929, was intended to reference the bold flavors associated with Texas-style cuisine and served as a nickname for the founder’s son, rather than a geographic claim.
Consumer Surveys in False Advertising Litigation
When false advertising claims include allegations of deception, parties frequently rely on consumer survey research. Consumer surveys may provide evidence of how reasonable consumers interpret representations made in advertising. False advertising cases that involve labeling and packaging frequently include consumer survey evidence from either party.
This case was dismissed. However, were the case to continue, false advertising survey evidence could have been introduced to show how consumers interpret the “Texas Pete’s” name, cowboy imagery, and lone star iconography. Surveys measuring materiality can show whether the geographic origin of the product influenced purchasing decisions, as well as the price consumers were willing to pay. Consumer perception studies and conjoint analyses may be used to address such issues in court.
Even when disclosures are made on labels, disputes over geographic origin can arise when the disclosures are unclear. False advertising cases, including those involving allegations about the product’s origin, often turn on evidence of consumer perception. IMS Legal Strategies designs, conducts, and testifies in false advertising class action lawsuits. If you are involved in a false advertising dispute that requires reliable consumer perception research, contact our survey experts.
