The legendary $4.99 rotisserie chickens from Costco are under fire this week as a proposed class action lawsuit claims the big box retailer has been misleading customers.
Two California shoppers noticed something that might seem obvious in retrospect: To sell an entire, slow-roasted chicken in a plastic bag, Costco added two preservatives. Problem is, the Issaquah, Washington-based company had promised on the packaging, in-store displays, and online that the chicken contained “no preservatives.”
The lawsuit filed last week with the Southern District claims that Costco’s promise that its rotisserie chickens contain no preservatives signals to “reasonable consumers“—like the two women who are plaintiffs in the case—that nothing was added to preserve the taste, flavor, texture, or shelflife of the product. But two preservatives—sodium phosphate and carrageenan—are listed on the ingredient list.
“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,’” the lawsuit reads, in part.
“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,” Wesley M. Griffith, the California managing partner with Almeida Law Group, which represents the plaintiffs in this lawsuit, said in a statement. “Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair.”
INGREDIENTS IN FOCUS
Costco has already taken steps to address the main concern of the lawsuit.
“To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/on‑line presentations, we have removed statements concerning preservatives,” a company representative said in a statement to KTLA 5 News. “We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities.”
These ingredients have landed other big companies in hot water in the past: In late 2024, a judge ruled that Kraft Heinz must face a proposed nationwide class action lawsuit that similarly focused on the company’s use of sodium phosphate in its macaroni and cheese products. And the addition of carrageenan in products labeled as “natural” or organic has been the subject of several lawsuits in recent years.
What’s more, Costco has faced criticism of its use of carrageenan in the past. The Cornucopia Institute, an organic food watchdog group, sent a letter to Costco in 2023 urging it to remove carrageenan from organic products. And the ingredient is one of many targeted by Health and Human Services Secretary Robert F. Kennedy Jr.
SUIT SEEKS MONETARY DAMAGES
In the latest lawsuit filed against Costco, the plaintiffs are seeking unspecified monetary damages, and if a judge approves a class action lawsuit, that might mean the retailer has to pay out anyone else who bought the chicken during a specified time period.
Interestingly, the plaintiffs said they might have still opted to purchase the rotisserie chicken had they known about the two ingredients, but “would have paid significantly less” for it. It might be hard for some people to imagine paying even less, as Costco’s rotisserie chicken is considered a “loss leader,” meaning the company realizes very little or no profit selling it.
Costco shares fell nearly 1% in mid-day trading on Thursday, extending a selloff of more than 3% in the past week.
