Costco Sued Over Alleged Mislabeling of Its Rotisserie Chicken

Costco is being sued for the alleged misleading labeling of its rotisserie chicken. Two shoppers filed a class action lawsuit on January 22 in the U.S. District Court for the Southern District of California, alleging that although the Costco Kirkland Signature Seasoned Rotisserie Chicken is labeled as having “no preservatives,” yet it contains two: sodium phosphate and carrageenan.

What are the allegations, exactly?

The lawsuit alleges that Costco violated consumer protection laws in California, where the plaintiffs reside, and in Washington, where Costco’s headquarters is based. “Sodium phosphate functions as a chemical preservative in foods because it buffers and controls pH, chelates metal ions, and reduces fat oxidation, which collectively inhibit or retard microbial growth and spoilage,” the lawsuit states. “Sodium phosphate also stabilizes proteins and emulsions, helping maintain texture and quality over time and thereby extending shelf stability—i.e., performing a preservative function.” Additionally, the lawsuit points out that carrageenan is “used to preserve food texture and extend shelf life.”

Why is this a problem?

For plaintiffs who prefer to purchase products without preservatives, this affects how Costco’s customers shop, as those seeking poultry that hasn’t been chemically enhanced will trust Costco’s signage when it’s precisely what they’ve been avoiding. By mislabeling its chicken, the members-only retailer is alleged to have known many of its customers wouldn’t have bought it if it had been correctly labeled.

The complaint also alleged that Costco violated California’s Unfair Competition Law by engaging in unfair business acts “by tricking Plaintiffs and members of the California Subclass into purchasing or alternatively paying a premium” for its chicken by its false presentation of the item.

How has Costco responded?

In a statement shared with USA Today on Wednesday, Costco stated that it would change the label for its rotisserie chicken and maintain transparency going forward. “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 announced. “We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities.”