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A proposed class action lawsuit accuses Costco of falsely advertising its signature rotisserie chicken as preservative-free.
WASHINGTON — Some Costco customers aren’t happy with the warehouse store’s signature $5 rotisserie chickens.
But it’s not the price that they have a problem with, it’s the advertising.
In a proposed class action lawsuit filed last week, a couple of disgruntled customers accused Costco of falsely advertising the chickens contain “no preservatives.”
The lawsuit, brought by two women in California, alleges that the Kirkland Signature Seasoned Rotisserie Chickens sold at Costco stores across the country contain two preservatives, sodium phosphate and carrageenan, despite claiming that they have none.
Kirkland Signature Seasoned Rotisserie Chickens are an iconic part of the Costco brand. Commonly considered “loss leaders” designed to draw customers further into the store where they will hopefully buy more items, the chickens are reportedly sold at a loss for the wholesaler because their price has not changed with inflation. The chickens retail in 2026 for a cent below $5, as they have for decades.
“Costco concealed the true nature of the Rotisserie Chicken by prominently representing it as having ‘no preservatives,’ without qualification, while formulating it with ingredients that act as preservatives,” the lawsuit reads.
Costco did not immediately respond to a request for comment, but the company told USA Today it has removed the signage about preservatives.
“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 told USA Today. “We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities.”
The lawsuit accuses Costco of violating multiple consumer protection laws, including state laws for California and Washington state, where the company is based out of.
The plaintiffs additionally claim that Costco “systemically cheated customers out of tens -if not hundreds- of millions of dollars” through its false advertising.
As proof of the complaint, the lawsuit included a photo of an in-store advertisement for the chickens, which retail at $4.99. The advertisement label says the product contains no preservatives, artificial flavor, MSG or gluten.
If the lawsuit becomes a class action suit, as the plaintiffs want, it will include anybody in the U.S. who has purchased a rotisserie chicken at Costco, with a subgroup of customers who purchased a roast bird in California.
It seeks unspecified monetary compensation for the damages.
What chemicals does the lawsuit allege are in the chickens?
Sodium phosphate is a preservative commonly used to control a food’s pH and reduce the oxidation of fat, making the food appear and taste fresh for longer. In processed meats, it’s used to retain moisture and improve the texture of the meat.
But researchers have warned that consuming large amounts of phosphate may pose health risks for people with kidney disease.
Carrageenan is a common preservative used to thicken foods, without providing any additional nutritional value. WebMD notes it has been used in preserving foods since the 1950s.
In its response to USA Today, Costco stressed that both preservatives are approved by food safety authorities.
The lawsuit claims both preservatives are only displayed in tiny print on the actual packaging of the products, someplace many customers won’t think to check after seeing the in-store promotional material claiming they don’t have any preservatives.
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