The legendary $4.99 rotisserie chickens from Costco are below hearth this week as a proposed class motion lawsuit claims the large field retailer has been deceptive prospects.
Two California consumers seen one thing which may appear apparent looking back: To promote a whole, slow-roasted chicken in a plastic bag, Costco added two preservatives. Drawback is, the Issaquah, Washington-based firm had promised on the packaging, in-store shows, and on-line that the rooster contained “no preservatives.”
The lawsuit filed final week with the Southern District claims that Costco’s promise that its rotisserie chickens comprise no preservatives alerts to “affordable customers“—like the 2 ladies who’re plaintiffs within the case—that nothing was added to protect the style, taste, texture, or shelflife of the product. However two preservatives—sodium phosphate and carrageenan—are listed on the ingredient listing.
“Costco Wholesale Company has systemically cheated prospects out of tens—if not a whole lot—of tens of millions of {dollars} by falsely promoting its Kirkland Signature Seasoned Rotisserie Hen as containing ‘no preservatives,’” the lawsuit reads, partly.
“Customers moderately depend on clear, outstanding claims like ‘No Preservatives,’ particularly when deciding what they and their households will eat,” Wesley M. Griffith, the California managing accomplice with Almeida Regulation Group, which represents the plaintiffs on this lawsuit, stated in a statement. “Costco’s personal ingredient listing contradicts its marketing. That’s illegal, and it’s unfair.”
INGREDIENTS IN FOCUS
Costco has already taken steps to deal with the principle concern of the lawsuit.
“To keep up consistency among the many labeling on our rotisserie chickens and the indicators in our warehouses/on‑line displays, now we have eliminated statements regarding preservatives,” an organization consultant stated in a press release to KTLA 5 News. “We use carrageenan and sodium phosphate to help moisture retention, texture, and product consistency throughout cooking. Each elements are permitted by meals security authorities.”
These elements have landed different large firms in scorching water up to now: In late 2024, a judge ruled that Kraft Heinz should face a proposed nationwide class motion lawsuit that equally targeted on the corporate’s use of sodium phosphate in its macaroni and cheese merchandise. And the addition of carrageenan in merchandise labeled as “pure” or natural has been the topic of a number of lawsuits in recent times.
What’s extra, Costco has confronted criticism of its use of carrageenan up to now. The Cornucopia Institute, an natural meals watchdog group, sent a letter to Costco in 2023 urging it to take away carrageenan from natural merchandise. And the ingredient is considered one of many focused by Well being and Human Companies Secretary Robert F. Kennedy Jr.
SUIT SEEKS MONETARY DAMAGES
Within the newest lawsuit filed towards Costco, the plaintiffs are searching for unspecified financial damages, and if a decide approves a class action lawsuit, which may imply the retailer has to pay out anybody else who purchased the rooster throughout a specified time interval.
Curiously, the plaintiffs stated they could have nonetheless opted to buy the rotisserie rooster had they recognized concerning the two elements, however “would have paid considerably much less” for it. It may be exhausting for some individuals to think about paying even much less, as Costco’s rotisserie rooster is taken into account a “loss chief,” that means the corporate realizes little or no or no revenue promoting it.
Costco shares fell almost 1% in mid-day buying and selling on Thursday, extending a selloff of greater than 3% up to now week.
