Right, so you've been conditioned to be mistrusting of advertising/labeling, probably because you've been lied to/manipulated, probably more than once. It'd be a hell of a lot easier if that weren't permitted, so we could just, y'know, trust what the fucking label said instead of investigating every. single. thing.
Would it really be easier?
I don't want the entire body of knowledge about a product, crammed together in a tiny font on a front label. That's what the back of the label is for while the front is just a place for a brand logo I recognize, and larger font to see it from a distance.
If I actually have to make the effort... to step closer... and lift... my arm... and lift... the product... to put it ... in my cart... how much extra effort is it to swivel the package to see the back, instead of just reading it on the front?
It is well established that the back label is for further info so everything isn't crammed on the front. This is a pretty common thing, normal.
Back to trust, that is subjective. There is no lie, Texas Pete's is the brand that makes the sauce. It seems more like a mistrust of reading comprehension, that the order words are written in, matters.
I agree that we have inadequate truth in advertising laws, but feel like it's too far of a stretch to apply that rationale in this case. There is no evidence that hot sauce made outside of Tx is of lower value so where is the damage? I'd even argue the opposite, that there was this one time my uncle from Tx came up to visit and I had a bottle of my sauce on the table, and he figured he's seen it all. He struggled finishing that meal.
Recognize the difference. If you want better truth in advertising laws then you petition your representatives to change the law, not single out one company and sue for profit. If the deception is so widespread, this is the fair thing to do instead of trying to penalize one company and make an example of them for the rest, at their expense.