Sazerac Chi Chi’s Mini Margaritas Lack Tequila, Lawsuit Says

Sazerac Co. deceptively marketed mini versions of its Chi-Chi’s margaritas because the smaller bottles don’t contain tequila but instead a malt-based liquor, a proposed consumer class action filed Friday alleges.

Disclosure that the mini bottles are based on a malt-beverage is “in the smallest allowed size” and is “at the bottom of the bottle, unlikely to be seen by purchasers who have had their attention captured by Chi-Chi’s ‘Original Margarita,’ in green and gold labeling,” the complaint filed in the US District Court for the Eastern District of New York says.

The consumers “expected more than a ‘margarita’ taste, but ...