Intentionally misleading label?

[Catch 22]

My wife came home with a bottle of Villa Mt Eden merlot the other day. The front had a small "badge label" (above the normal label) that said on it " A Napa Valley Winery". On the "regular" label, the wine was called 1997 Villa Mt Eden "Coastal" . Then, below that, it was labeled "California Merlot". Obviously, the grapes for this wine could have come from anywhere in CA. Why, other than to intentionally mislead, would they put "Coastal" on the label, not to mention Napa Valley? I have a decent grasp of the labelling system, but someone who doesn't may think they are buying a wine made from Napa Valley grapes, when in fact, they are not. This type of labelling, while legal,shows a lack of ethics in my opinion. Now that I have completed my diatribe, I must say, the wine was actually decent.