Costco’s $4.99 rotisserie chicken deal is beloved by customers, but two from California say that the wholesaler has been misleading consumers about preservatives in the chicken. A nationwide class action lawsuit based on the allegations was filed Jan. 22 in the United States District Court for the Southern District of California.
“According to the lawsuit, Costco displays large instore signage and online product listings stating ‘No Preservatives,’ without qualification,” said Almeida Law Group, a consumer protection and complex litigation firm handling the case. “Plaintiffs Bianca Johnston of Big Bear, California and Anatasia Chernov of Escondido, California say they relied on these representations when purchasing the product, believing the chicken contained no additives that preserve taste, texture, or shelf life.”
Per the suit, the popular chickens are formulated with added preservatives (sodium phosphate and carrageenan) to extend shelf life and maintain texture. It also alleges that Costco “cheated customers out of tens – if not hundreds – of millions of dollars,” with the false advertising and claims it violated consumer protection laws.
Consumer Reports listed both phosphates and carrageen a “food additives to watch out for” article last year. It said that excessive phosphate intake can be a risk for people with kidney conditions but it also noted that “more than 85% of food products sold in the U.S. contain them.” As for carrageen, which is derived from red seaweed, Consumer Reports said it “may be linked to a higher risk of heart disease and breast cancer.”
“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,” said California Managing Partner Wesley M. Griffith of the Almeida Law Group. “Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair.”
USA Today reported that Costco said in a Jan. 28 statement that the company has removed some of the signage for its chicken.
“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 from the signs and on-line presentations,” the company said. “We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities.”
Griffith said in an update on the suit that his firm is “pleased to see that Costco promptly dropped its false advertising claims of ‘no preservatives’ in response to our lawsuit.” He also said “it’s confirmation of our core legal theory – the ‘no preservative’ claims were false.”
Both of the consumers listed in the suit said they would purchase the chicken again if it is prepared without preservatives.
Earlier this month, The Street noted in an article that “Costco’s $4.99 chicken has been one of its major calling cards, and the warehouse club has gone to extreme steps to keep it at that price point.” Other stores often sell similar rotisserie chicken products for closer to $8.
In fact, The Street said Costco loses money on its chickens. It also reported on issues outside of the preservatives claims, including salmonella risks.
Costco filed its own lawsuit last month, against the U.S. government over President Donald Trump’s tariffs. Audacy covered that suit here.