Lawsuit targets company for selling ‘New Mexico’ peppers not grown in NM
In an 11-page filing from the U.S. District Court for the Eastern District of New York, multiple plaintiffs have sued the Florida-based company Badia Spices, Inc. over the branding of its product “New Mexico Chili” peppers that misleads consumers into thinking the Mexico-grown peppers could be chile from New Mexico.
For consumers to know that Badia chili peppers are grown in Mexico, they would have to visit the company’s website, meaning those who merely view the product’s packaging would not know its country of origin.
“Even if consumers turned the package around they would not be informed the Product is not from New Mexico, because the ingredients identify ‘New Mexican chili’ and the label is not required to disclose its country of origin,” the lawsuit reads.
“New Mexico Chili is deceptively misdescriptive as a name because the Product is not grown in New Mexico.”
“New Mexico Chili is not a name whose market significance is generally understood by the consumer to connote a particular class, kind, type, or style of chili rather than to indicate geographical origin, because New Mexico chili refers to a specific type of chili pepper grown only in New Mexico,” it continues.
For consumers, the lawsuit alleges, the place of origin is indicative of product quality. Since New Mexico’s chiles thrive from the state’s high altitude, mineral-rich soil, and arid climate, the state’s chiles are “unlike chili peppers grown anywhere else in the world,” the suit says, adding that New Mexico chile is one of the state’s “key” industries.
“New Mexico [chile] is a key industry, employing over 5,000 New Mexicans and putting upwards of a billion dollars into state coffers. However, the past 30 years has seen the number of acres devoted to New Mexico chili decline more than 70%. While drought brought… is one factor, the most significant threat has been lower priced imports of chili from China, India and Mexico.”
“The lawsuit looks to cover all persons in New York, North Dakota, Utah, Idaho, Alaska, and West Virginia who bought Badia ‘New Mexico Chili’ peppers within the applicable statute of limitations period,” according to ClassAction.com.
Read the lawsuit here:
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