Costco is facing a class-action lawsuit accusing the warehouse retailer of falsely advertising that its Kirkland Signature Seasoned Rotisserie Chicken contains no preservatives, according to court documents.
The lawsuit, filed Thursday in the U.S. District Court for the Southern District of California, alleges that Costco’s in-store signage and website “create an overall net impression that the Rotisserie Chicken does not contain added preservatives.” But the suit further claims those representations are false, arguing that “the Rotisserie Chicken is made with two added preservatives—sodium phosphate and carrageenan.”
“The presence of sodium phosphate and carrageenan, added preservatives which function as such in the Rotisserie Chicken, contradict the overall net impression that Costco’s ‘No Preservatives’ representations and advertising create,” the lawsuit, filed on behalf of Anatasia Chernov and Bianca Johnston, states.
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The plaintiffs argued that customers, including themselves, make purchasing decisions based on whether a food product is “preservative free” and that they were unable to determine prior to buying the chicken if it contains added preservatives.
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The lawsuit argues that any mention of the ingredients, if disclosed at all, appeared only in small print on the back of the label and did not explain their preservative function. The suit claimed these disclosures were inadequate to counter the “no preservatives” claims prominently displayed by Costco.
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It also alleges the company had superior knowledge about how the ingredients functioned and failed to share that information with consumers.
“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,” Wesley Griffith, California managing partner at the Almeida Law Group LLC who is representing the party suing Costco, told FOX Business.
He also said that “Costco’s own ingredient list contradicts its marketing. Our lawsuit seeks to hold Costco accountable for deceiving its customers.”
FOX Business reached out to Costco for comment.
Costco’s stock traded at around $977, down about 0.5%, in midday trading. Shares are up more than 13% year to date.
