Customers Sue Costco, Say They Were Tricked on Chicken

Costco’s popular $4.99 rotisserie chicken, a longtime favorite among shoppers, is now facing a proposed class-action lawsuit over how it is labeled and marketed. Two California consumers filed the suit in federal court in San Diego on Jan. 22, alleging that Costco misleads customers by advertising its Kirkland Signature Seasoned Rotisserie Chicken as containing “no preservatives,” despite including two additives: sodium phosphate and carrageenan.

According to the complaint, reported by USA Today, both ingredients function as preservatives, and the plaintiffs claim Costco has “systemically cheated customers out of tens—if not hundreds—of millions of dollars” by promoting the product as preservative-free. The lawsuit points to prominent in-store signage and online marketing that emphasize “no preservatives” in large print, while the additives are disclosed only on the back of the package in smaller, less noticeable text. The filing argues that this disclosure does not adequately explain the role the ingredients play, reports The Independent.

The complaint states that sodium phosphate is used to regulate pH levels and slow spoilage, while carrageenan is commonly added to maintain texture and thickness, according to USA Today. The plaintiffs argue that this marketing approach violates consumer protection and false advertising laws in both California and Washington state, where Costco is headquartered. They also allege the practice amounts to unfair competition by encouraging customers to purchase—or pay a premium for—chickens they believed contained no preservatives.

In response, Costco said it has removed references to preservatives from warehouse signage and online listings to better align its marketing with product labeling. The company stated that sodium phosphate and carrageenan are used to help retain moisture, improve texture, and ensure consistency during cooking, and noted that both additives are approved by food safety regulators. However, reporting from the Los Angeles Times notes that excessive consumption of sodium phosphate has been linked to cardiovascular and kidney issues, while high intake of carrageenan has been associated with digestive problems.

The proposed lawsuit would apply to all U.S. consumers who purchased Costco’s rotisserie chicken, with a separate subclass for buyers in California, according to USA Today. The plaintiffs are seeking class-action certification and unspecified monetary damages. They also state they intend to continue buying the chicken, provided future labeling accurately reflects the ingredients used.

Original Source