Laser marking is an innovative and eco-friendly alternative to plastic sticker labeling of organic fruits, with no known negative side effects. Still, based on Ram and Sheth’s innovation resistance theory, we predict that this food eco-innovation applied to the produce may lead to ambivalent responses, with consumers valuing its eco-friendliness but fearing health risks. Drawing on Festinger’s cognitive dissonance theory, we predict that consumers actively attempt to resolve the ambivalence by adapting their beliefs about laser marking to situation-specific realities. Finally, based on Nemeroff and Rozin’s contagion theory, we predict that an important situation-specific reality for this eco-innovation is fruit peel edibility, which moderates the found relationships. These hypotheses are tested in three between-subjects experiments (Study 1 – 396 participants; Study 2 – 390 participants; Study 3 – 346 participants). Participants were exposed to scenarios presenting an organic fruit with a laser-marked or plastic sticker label, on an edible or non-edible peel. As predicted, we find that laser marking decreases perceived eco-friendliness, because of anticipation of food waste, and reduces perceived healthfulness, because of fear of contamination, both depending on whether the fruit’s peel is edible or not. Implications for managers include the need to educate consumers about the benefits and risks of this technology. For a start, laser marking should probably be limited to fruits with non-edible peels.