Costco’s famously cheap rotisserie chicken — the one shoppers grab almost on autopilot — has landed the retail giant in hot water.
A new lawsuit claims the warehouse chain led customers to believe the chicken contained no preservatives when, according to the filing, that simply wasn’t true.
The case, filed in California on January 22, argues that the messaging around Costco’s Kirkland Signature Seasoned Rotisserie Chicken crossed the line from marketing spin into outright deception.
What shoppers say they were promised
At the center of the dispute is a bold claim many shoppers say influenced their decision: “No Preservatives.”
According to the lawsuit, that phrase appeared prominently on in-store signs and online product listings, creating the impression the chicken was free from added chemical ingredients.
Two California women say they relied on that wording when deciding to buy the product for themselves and their families — and that trust, they claim, was misplaced.
The ingredients raising eyebrows
The complaint points to two additives listed on the chicken’s label: carrageenan and sodium phosphate.
While neither ingredient is hidden, the lawsuit argues their presence directly contradicts the “no preservatives” claim.
Carrageenan is commonly used to improve texture, while sodium phosphate helps lock in moisture and boost flavor.
Critics, however, argue that consumers don’t typically associate either ingredient with a preservative-free product, especially when the marketing suggests otherwise.
Health concerns add fuel to the fire
Both ingredients are approved for use by food safety regulators, including the FDA.
Still, the lawsuit references studies suggesting carrageenan may irritate the digestive system, while excessive intake of sodium phosphate has been linked to kidney and heart issues.
The plaintiffs argue that even if the ingredients are legal, shoppers deserve full clarity — especially when health considerations are part of the purchasing decision.
Claims of misleading marketing across states
The lawsuit alleges Costco violated consumer protection laws not only in California but also in Washington State, where the company is headquartered.
It accuses the retailer of running a widespread advertising strategy that encouraged shoppers to pay for what they believed was a cleaner, simpler product.
According to the filing, that approach resulted in customers being overcharged on a massive scale.
Costco responds and pulls the wording
Costco has acknowledged the labeling issue and confirmed it has already taken action.
In a statement to USA TODAY, the company said it removed references to preservatives from signage and online listings to ensure consistency.
The retailer explained that carrageenan and sodium phosphate are used to maintain texture, moisture, and consistency during cooking, and emphasized that both ingredients are approved by food safety authorities.
Why the plaintiffs say that’s not enough
The two women behind the case, Bianca Johnston and Anastasia Chernov, say they bought the chicken in 2024 and 2025 at Costco stores in California.
They claim they would not have made those purchases — or would have paid less — had the advertising been clearer.
Their legal team argues that prominent claims like “No Preservatives” carry real weight for consumers making food choices for their households.
What the lawsuit is demanding
The plaintiffs are asking the court to order Costco to stop what they call misleading advertising, issue refunds to affected customers, and return profits allegedly earned through false claims.
They also say they’d be open to buying the rotisserie chicken again in the future — but only if it truly matches the preservative-free image it once projected.
A chicken with massive reach
Costco’s rotisserie chicken isn’t just popular — it’s a juggernaut.
The company sells more than 100 million of the birds every year, according to CEO Ron Vachris, making it one of the most widely purchased prepared foods in the US.
That scale is part of why the lawsuit claims the financial impact could be enormous.
Old packaging complaints resurface
The controversy arrives on the heels of another chicken-related headache for Costco.
In 2024, the retailer swapped its hard plastic containers for plastic bags — a move that sparked customer backlash.
Shoppers continue to complain that the bags leak, leaving trails of chicken juice in carts, cars, and refrigerators.
What’s next?
The case is still in its early stages, and Costco has yet to formally respond in court.
But with one of America’s most iconic grocery items under scrutiny, the outcome could reshape how major retailers label and market everyday foods — and how closely shoppers read what’s on the sign before tossing dinner into the cart.
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