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Costco is facing a proposed class action lawsuit filed in federal court over allegedly misleading claims about its popular $4.99 rotisserie chicken. The lawsuit, filed on January 22 in the U.S. District Court for the Southern District of California, claims the wholesale retailer falsely advertised its Kirkland Signature Seasoned Rotisserie Chicken as containing "no preservatives."
According to the complaint, the chicken actually contains two preservatives – sodium phosphate and carrageenan – which are listed in the ingredients but contradict the prominent "no preservatives" signage displayed in stores and online. The plaintiffs, Bianca Johnston of Big Bear and Anastasia Chernov of Escondido, claim they purchased the chicken believing it was preservative-free.
"Costco Wholesale Corporation has systemically cheated customers out of tens—if not hundreds—of millions of dollars by falsely advertising its Kirkland Signature Seasoned Rotisserie Chicken as containing 'no preservatives'," states the complaint filed in California's Southern District Court.
Sodium phosphate is commonly used to preserve moisture and enhance flavor in processed foods, while carrageenan is added to thicken and stabilize products like meats. Both ingredients are approved food additives, though some studies have linked excessive sodium phosphate intake to kidney strain and cardiovascular risks, and carrageenan to digestive inflammation.
In response to the allegations, Costco has already taken action. The company said in a statement to USA TODAY that it has "removed statements concerning preservatives from the signs and on-line presentations" to maintain consistency between packaging and signage.
"We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities," Costco added in its statement.
The lawsuit comes amid growing consumer interest in "clean label" products free from artificial additives, partly fueled by Robert F. Kennedy Jr.'s "Make America Healthy Again" movement, which has brought greater scrutiny to ultra-processed foods.
Retail analysts have described Costco's rotisserie chicken as a "loss leader," meaning it's sold at little to no profit to attract customers to the store. Despite initiating the lawsuit, both plaintiffs stated they plan to purchase Costco's rotisserie chicken again, though one noted she "cannot rely on Costco's preservative-related representations for the product unless those representations are accurate."
The proposed class action seeks to represent anyone in the United States who purchased the chicken, with a specific subclass for California customers. The plaintiffs are seeking unspecified monetary damages for violations of consumer protection laws in California and Washington state, where Costco is headquartered.