Full Breakdown
Costco Faces Class Action Lawsuit Over Rotisserie Chicken Labeling
1/31/2026, 12:46:06 PM
Allegations of False Advertising
A proposed class action lawsuit has been filed against Costco Wholesale Corporation, alleging that the company falsely advertised its Kirkland Signature Seasoned Rotisserie Chicken as containing "no preservatives." The lawsuit, initiated by California residents Bianca Johnston and Anastasia Chernov on January 22, 2026, claims that the chicken actually contains two preservatives: sodium phosphate and carrageenan. These ingredients, while approved by food safety authorities, are argued by the plaintiffs to function as preservatives, contradicting Costco's marketing claims.
The lawsuit asserts that the misleading labeling has led to significant financial losses for consumers, stating that Costco has "systematically cheated customers out of tens—if not hundreds—of millions of dollars." The plaintiffs contend that they would not have purchased the chicken had they known it contained these additives, which they prefer to avoid.
Background on Ingredients
Sodium phosphate is commonly used in processed foods to enhance moisture retention and texture, while carrageenan, derived from seaweed, serves as a thickener and stabilizer. Both ingredients are recognized as safe by the Food and Drug Administration (FDA) but are often viewed by consumers as preservatives. The lawsuit highlights that the ingredient list on the product packaging is less prominent than the "no preservatives" claims, potentially misleading consumers at the point of sale.
Costco's Response
In response to the allegations, Costco has removed all references to "no preservatives" from its signage and online marketing materials. The company stated, “To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/online presentations, we have removed statements concerning preservatives.” Costco maintains that the ingredients used are essential for moisture retention and product consistency during cooking.
Implications of the Lawsuit
If the lawsuit is certified by the court, it could encompass all U.S. customers who purchased the rotisserie chicken, with a specific subclass for California buyers. The plaintiffs are seeking unspecified monetary damages and changes to Costco's labeling practices. This case raises broader questions about food labeling transparency and consumer trust, particularly as shoppers increasingly seek products perceived as natural or minimally processed.
Criticism and Consumer Perspectives
Consumer advocates argue that lawsuits like this reflect a growing demand for transparency in food labeling. The plaintiffs' claims underscore the importance of clear communication regarding food ingredients, as many consumers rely on simple phrases like "no preservatives" to make informed purchasing decisions. Critics of Costco's marketing practices suggest that such representations can erode consumer trust when they conflict with ingredient lists.
What's Next
The case is ongoing, and a hearing schedule has not yet been established. As the legal proceedings unfold, the outcome may set a significant precedent for how food retailers describe ingredients and the expectations consumers have regarding food labeling. The implications of this lawsuit could influence marketing practices across the grocery industry, emphasizing the need for clarity and accuracy in food product representations.
