Customers Sue Costco, Say They Were Tricked on Chicken

Costco's famous $4.99 rotisserie chicken, a staple for many shoppers, is now at the center of a proposed class-action lawsuit over what's on the label, and what's inside the bird. Two California customers filed the suit in federal court in San Diego on Jan. 22, alleging that Costco misleads shoppers by promoting its Kirkland Signature Seasoned Rotisserie Chicken as having "no preservatives" while using two additives: sodium phosphate and carrageenan. Per USA Today, the complaint says those ingredients function as preservatives and claims Costco has "systemically cheated customers out of tens—if not hundreds—of millions of dollars" by advertising otherwise.

The lawsuit points to in-store signage and online marketing that highlight "no preservatives" in large print, while listing sodium phosphate and carrageenan on the back of the packaging. The suit notes that the packaging description is in small, hard-to-notice type and doesn't adequately explain the ingredients' preservative function, reports the Independent. According to the complaint, sodium phosphate helps control pH and slow spoilage, while carrageenan is commonly used to thicken foods and maintain texture, per USA Today. The plaintiffs argue that this setup violates consumer protection and false advertising laws in California and Washington state, where Costco is based, and amounts to unfair competition by allegedly inducing shoppers to buy—or pay a premium for—chickens they believed were preservative-free.

In a statement, Costco said it has taken down references to preservatives from warehouse signs and online listings to keep its marketing aligned with product labels. The company said carrageenan and sodium phosphate are used "to support moisture retention, texture, and product consistency during cooking" and noted that both ingredients are approved by food safety authorities. Per the Los Angeles Times, research has shown that too much sodium phosphate has been tied to cardiovascular and kidney issues, while overdoing it on carrageenan is linked to digestive problems.

The proposed complaint would cover anyone in the US who bought the rotisserie chicken, with a separate subclass for California buyers, per USA Today. The plaintiffs are seeking class certification and unspecified monetary damages but say they still plan to purchase the chicken, provided any future claims about preservatives accurately reflect what's in the package.