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Costco faces lawsuit over misleading rotisserie chicken claims

Jan 28, 2026, 9:56 PM20
(Update: Jan 29, 2026, 5:34 PM)
American multinational chain of membership-only stores

Costco faces lawsuit over misleading rotisserie chicken claims

  • A class-action lawsuit was filed by two California residents against Costco for falsely advertising its rotisserie chicken as having 'no preservatives.'
  • The lawsuit claims the product contained preservatives, specifically sodium phosphate and carrageenan, which were not adequately disclosed.
  • Consumers are increasingly demanding transparency in food labeling, emphasizing the significance of the lawsuit in highlighting advertising accuracy.
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In a class-action lawsuit filed on January 22, 2026, two California residents, Anatasia Chernov from Escondido and Bianca Johnston from Big Bear, have accused Costco of false advertising regarding its Kirkland Signature Seasoned Rotisserie Chicken, sold at $4.99. The plaintiffs argue that Costco's marketing claims, which prominently state the product has 'no preservatives,' are misleading. According to the lawsuit, the chicken contains sodium phosphate and carrageenan, both of which act as preservatives and are registered on the ingredient list, but in notably small print. They assert that consumers would expect a product labeled as 'no preservatives' to not contain any added preservatives at all, leading to potential misrepresentation by Costco. The lawsuit claims that such advertising practices violate consumer protection laws in both California and Washington. California laws apply because that is where the plaintiffs made their purchases, and Washington laws are relevant since Costco's corporate headquarters are located there. The plaintiffs are seeking compensation for all U.S. shoppers who purchased the product and are also requesting a separate subgroup specifically for California residents due to the varying consumer protection laws in that state. This legal action sheds light on the reliance consumers place on marketing claims, especially when it comes to food products marketed as healthy or free from certain additives. In response to the allegations, a Costco spokesperson stated that to maintain consistency, the company has removed 'no preservatives' claims from its signage and online platforms. They acknowledge using carrageenan and sodium phosphate to enhance moisture retention and texture during cooking, emphasizing that both additives are approved by food safety authorities. The spokesperson's statement suggests that the company acknowledges the importance consumers place on clear labeling and wishes to address any confusion surrounding their product. This lawsuit is more than just a dispute over advertising; it highlights growing consumer expectations about food transparency and safety, especially concerning preservatives. It reflects a wider trend as consumers demand clearer labeling and honest representation of the food they purchase. Given the health risks associated with high phosphate intake and dietary additives, the outcome of this case may influence how food labeling practices evolve in the future, potentially leading to new regulatory standards and corporate accountability in food advertising.

Context

Consumer protection laws are essential in safeguarding the interests of individuals and businesses. In California and Washington, various laws have been enacted to ensure that consumers are treated fairly and that businesses operate transparently. California has established itself as a leader in consumer protection through legislation such as the Consumers Legal Remedies Act (CLRA), which prohibits unfair methods of competition and deceptive acts towards consumers. Additionally, the Unfair Competition Law (UCL) provides a broader scope against unlawful business practices, empowering consumers to seek remedies through the courts. These laws are supplemented by California's privacy regulations, including the California Consumer Privacy Act (CCPA), which grants consumers the right to know what personal information businesses collect and how it is used, thus enhancing consumer control over personal data. In Washington, the Consumer Protection Act embodies a commitment to safeguarding consumers by offering remedies against unfair or deceptive acts in trade. This law is designed to promote honesty and transparency in business dealings, making it easier for consumers to fight back against misleading advertising and fraud. Washington has also taken significant steps to address privacy concerns, most notably through the Washington Privacy Act, which aims to regulate how personal data is collected, used, and disclosed. This regulation not only aligns with contemporary privacy norms but also provides a framework for consumer consent and rights over personal information. Both states have established mechanisms for consumers to file complaints and seek redress for grievances. In California, the Department of Consumer Affairs serves as a critical resource, facilitating consumer education and providing avenues for reporting violations. Similarly, Washington has the Attorney General's Office, which actively investigates consumer complaints and takes action against businesses that violate consumer protection laws. The robust enforcement of these laws in both states reflects a commitment to ensuring that businesses operate with integrity and that consumers are not victimized by fraud or deception. These consumer protection laws in California and Washington represent a continued evolution of legislative efforts to adapt to the changing marketplace, particularly with the rise of e-commerce and digital transactions. As technology advances, both states are likely to revise and enhance their consumer protection laws to address new challenges, such as those posed by data breaches and cyber fraud. It is crucial for consumers to remain informed about their rights under these laws, as well as the avenues available for seeking justice should their rights be infringed upon. Overall, the strong consumer protection frameworks in California and Washington serve as vital tools for supporting a fair and equitable market.

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