Looks like blossom rot. Low calcium. Check out this link.

Here is a link that might be useful: blossom rot

Thanks. I added bone meal to the soil when I potted the plants, but I guess not enough. Will try a bone meal tea.

I believe bone meal takes a while for the calcium to be available to the plants. Maybe epsom salt?? No expert - so definitely double-check, but, it's worth looking in to.

last year my bell bells did the same thing! i went out anf bought "maxi-Cal" and added 2-3Tsp per watering, you can use it as a foliar spray too! but this year i am trying this whitch's brew i read about on here and hopefully i dont get BER on any peppers(i dont have any pods yet just flowers that are starting to grow out!) good luck!
Eric

If blossom end rot (BER), same reasons as for tomatoes.

Tomato FAQ. http://faq.gardenweb.com/faq/tomato/

However, this could be sunburn.

Here is a link that might be useful: BER