An investigation into how cancer-causing chemicals entered the food chain is being launched by Essex Trading Standards.
As the chilli powder containing Sudan 1 came into the country through the county, Essex Trading Standards has been given responsibility to deal with the probe.
A total of 474 foods have been withdrawn from sale as a result of the alert.
Roger Walters, Essex County Council's deputy cabinet member for Trading Standards, said: "We will in the immediate weeks be carrying out an investigation.
"The chilli came into the country in 2002 when testing methods were not as sophisticated. All products now are tested for Sudan 1 when they come into the country. But we have to do a full investigation to see if anyone has not followed the guidelines.
"We have to try and hope we don't have any more scares like this - we have to learn from this experience."
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