Few supermarket items inspire the kind of loyalty Costco’s $4.99 rotisserie chicken does.
For years, shoppers have grabbed the hot, ready-to-eat bird as an easy dinner solution, trusting the promise splashed across signs and listings that it contained “no preservatives.”
That trust is now at the center of a new legal fight that could have major implications for the retail giant.
Lawsuit Claims Costco’s Labeling Told a Different Story
Costco Wholesale Corporation is facing a class action lawsuit filed in California on January 22 by two women who say the company misled customers about what was really inside its Kirkland Signature Seasoned Rotisserie Chicken.
The plaintiffs argue that despite clear claims of “no preservatives,” the ingredient list tells another story.
According to the lawsuit, the chickens include carrageenan and sodium phosphate—ingredients the plaintiffs say function as preservatives and directly contradict Costco’s marketing.
The Ingredients at the Heart of the Dispute
The complaint explains that carrageenan is commonly used in meat products to improve texture and thickness, while sodium phosphate helps retain moisture and boost flavor during cooking.
While both ingredients are approved by the Food and Drug Administration, the lawsuit argues that their presence undermines the “no preservatives” claim.
The filing goes further, accusing Costco of quietly changing labels while continuing to benefit from premium pricing and customer trust.
The plaintiffs allege this practice has unfairly cost shoppers tens, if not hundreds, of millions of dollars over time.
Health Concerns Add Fuel to the Fire
Although federal regulators consider the ingredients safe, the lawsuit points to studies suggesting potential health concerns.
Carrageenan has been linked in some research to digestive irritation, while excessive intake of sodium phosphate has been associated with kidney and heart complications.
These concerns, the plaintiffs argue, make transparent labeling even more critical for families making food choices.
Alleged Violations Across Multiple States
The lawsuit claims Costco violated consumer protection laws not only in California but also in Washington State, where the company is headquartered.
The complaint highlights large in-store signs and online listings that explicitly stated “No Preservatives,” despite the ingredient list showing otherwise.
Costco Responds and Removes the Claims
Costco has acknowledged the issue and confirmed that it has removed references to preservatives from its signage and online product descriptions.
In a statement to USA TODAY, the company said the move was about consistency between labeling and marketing.
The retailer also defended its ingredient choices, explaining that carrageenan and sodium phosphate are used to maintain moisture, texture, and consistency during cooking, and emphasized that both are approved by food safety authorities.
Why the Plaintiffs Say They Feel Misled
The two women behind the lawsuit, Bianca Johnston and Anastasia Chernov, say they purchased the rotisserie chickens in 2024 and 2025 at Costco locations in California.
They claim they would not have bought the product—or would have paid less—if the advertising had been clearer.
Their attorney argues that shoppers reasonably rely on bold, simple claims like “No Preservatives” when deciding what to feed their families, and that Costco’s own ingredient list contradicts its marketing.
What the Lawsuit Is Demanding
The plaintiffs are asking the court to require Costco to stop what they describe as misleading advertising, issue refunds to affected customers, and return profits allegedly gained through false claims.
Interestingly, they also say they’d happily buy the chicken again in the future—if it truly meets preservative-free standards.
A Bigger Spotlight on a Massive Seller
Costco sells more than 100 million rotisserie chickens each year, making it one of the most popular prepared foods in the United States.
The product has already faced scrutiny recently, especially after the company switched from hard plastic containers to plastic bags in 2024—a change that sparked customer complaints over leaks and messes.
Now, with a lawsuit challenging how the chicken is marketed, Costco’s most iconic bargain may be entering its most controversial chapter yet.
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