Costco is taking legal action to dismiss a proposed class-action lawsuit that accuses the retailer of falsely advertising its popular Kirkland Signature Seasoned Rotisserie Chicken as preservative-free. The lawsuit, filed on Jan. 22 in a California court by plaintiffs Bianca Johnston and Anastasia Chernov, claims the chicken contains two added preservatives: sodium phosphate and carrageenan.
Allegations of False Advertising
The plaintiffs argue that sodium phosphate and carrageenan help preserve texture and shelf stability, thereby performing a preservative function. The complaint states: “Because sodium phosphate and carrageenan perform preservative functions in the Rotisserie Chicken, the Rotisserie Chicken in fact contains added preservatives.” They accuse Costco of engaging in “unfair business acts and practices by tricking” customers into paying a premium for the product by advertising it as having “no preservatives.”
Costco's Response
Costco filed a motion to dismiss the lawsuit on June 4, calling it “fatally flawed.” The retailer argued that the sources cited by the plaintiffs do not list sodium phosphate or carrageenan as preservatives, so “reasonable consumers” cannot claim deception. In a memorandum obtained by People, Costco stated that the ingredients “function as seasonings” and are used to support moisture retention, texture, and product consistency during cooking. The company also noted that both ingredients are approved by food safety authorities.
Costco further scoffed at the claim of a “price premium,” pointing out that the price of its rotisserie chicken remains $4.99 in the United States, unchanged even after the removal of “no preservatives” signage. “The Amended Complaint does not identify a single ‘competitor’ who prices a whole rotisserie chicken for sale for less than $4.99,” the motion added.
Labeling Changes
In January, Costco issued a statement confirming that it had removed “no preservatives” labeling from its rotisserie chicken signs and online presentations to maintain consistency. The plaintiffs are seeking unspecified monetary damages and class certification for all affected shoppers who purchased the chicken. Costco is asking for the complaint to be dismissed with prejudice, arguing that the amendment is futile and cannot salvage the claims.
Upcoming Hearing
A judge is scheduled to hear the motion to dismiss on Aug. 13. Costco maintains that its rotisserie chicken is accurately labeled and that the lawsuit lacks merit.
