Costco is firmly contesting a class action lawsuit that claims the retailer is misleading customers regarding its well-known $5 rotisserie chicken.
Recently, the company requested the U.S. District Court for the Southern District of California to dismiss a suit initiated in January by two customers from California.
The plaintiffs assert that the Kirkland Signature Seasoned Rotisserie Chicken includes carrageenan and sodium phosphate, yet it’s marketed as “preservative-free.”
The lawsuit contends that this claim confuses consumers and violates several consumer protection laws, including the Washington Consumer Protection Act and the California Consumer Legal Remedies Act.
Costco’s legal team pushed back, suggesting the lawsuit stems from a misinterpretation of how certain ingredients are categorized. Charles Sipos, an attorney for Costco, described the allegations of false advertising as “fatally flawed,” noting that according to U.S. Food and Drug Administration guidelines, the ingredients in question are not classified as preservatives.
Rather, these ingredients are part of a seasoning mix for the chicken. Carrageenan, which comes from seaweed, is commonly used in processed foods to act as a thickener and stabilizer. Meanwhile, sodium phosphate serves various functions in food processing, like thickening and emulsifying.
The lawsuit aims to prevent Costco from promoting the chicken as preservative-free, while also enabling U.S. customers who bought the product to join a potential class action seeking financial compensation.
The plaintiffs’ legal representatives from Almeida Law Group argue that the “preservative-free” label allowed Costco to charge higher prices. However, Costco challenges this notion, with Sipos indicating in their response that the amended complaint does not specify any competitor selling whole rotisserie chickens for less than the $4.99 price point Costco is known for.
Additionally, Sipos mentioned that the plaintiffs have not demonstrated any actual harm resulting from the labeling claims.
