Costco sued over quality of rotisserie chicken in class action lawsuit

Costco’s famous $4.99 rotisserie chicken is facing a proposed class action lawsuit for allegedly falsely advertising that its birds were free of preservatives. The lawsuit claims that two California shoppers discovered the misleading advertising, which prominently displayed the chicken as preservative-free while discreetly listing sodium phosphate and carrageenan as added preservatives in fine print on the ingredient list. The lawsuit alleges that Costco systematically cheated customers by falsely advertising its Kirkland Signature Seasoned Rotisserie Chicken as having ‘no preservatives.’ Sodium phosphate and carrageenan are common food additives used to preserve moisture, enhance flavor, thicken, and stabilize products. Although studies have linked excessive sodium phosphate intake to kidney strain and cardiovascular risks and carrageenan to digestive inflammation, the FDA maintains that both additives are safe when used at approved levels.

Costco responded by removing the no preservatives statement from their in-store and online advertisements to maintain labeling consistency. The two plaintiffs, Bianca Johnston and Anastasia Chernov, made purchases at different California Costco locations under the belief that the chickens were preservative-free due to misleading signage. The lawsuit alleges that this misleading advertising prevented customers from making informed decisions and comparing pricing with competitor products. Photos submitted as evidence show Costco signs promoting the chicken as USDA Grade A with no artificial colors, preservatives, or flavors.

Costco’s rotisserie chicken, priced under $5, is considered a loss leader by retail analysts, sold at little to no profit to entice customers to shop and spend on other items in-store. With growing consumer awareness of ultra-processed foods’ health impacts, there is a national push for goods marketed as preservative-free. The complaint asserts that Costco violated consumer laws in California, where the chickens were purchased, and in Washington, their headquarters’ state. Plaintiffs seek to make it a class action lawsuit representing customers who bought the rotisserie chicken nationwide.

As Robert F. Kennedy Jr.’s “Make America Healthy Again” movement sheds light on ultra-processed foods’ health risks, demand for preservative-free products rises. This lawsuit emphasizes the importance of accurate advertising for informed consumer choices. Costco’s response to the lawsuit will involve maintaining transparency in their product claims and aligning with labeling regulations to avoid future legal disputes.