UMVA has learned that Costco is taking a bold stance against a lawsuit that accuses the wholesale giant of falsely advertising its popular rotisserie chicken as preservative-free.
The lawsuit, filed in a California court, claims that Costco's Kirkland Signature Seasoned Rotisserie Chicken contains two added preservatives: sodium phosphate and carrageenan, which allegedly help preserve texture and shelf stability.
The plaintiffs, Bianca Johnston and Anastasia Chernov, accuse Costco of engaging in "unfair business acts and practices" by tricking customers into paying a premium for the product, which is priced at $4.99 in the United States and under $10 in Canada.
Costco is fighting back, calling the class-action lawsuit "fatally flawed" and arguing that the sources used to support the claims do not list the two ingredients as preservatives, and therefore, "reasonable consumers" cannot be described as deceived.
In a statement, Costco said that the ingredients "function as seasonings" and are used to support moisture retention, texture, and product consistency during cooking, adding that both ingredients are approved by food safety authorities.
The wholesale retailer also revealed that it had removed the "no preservatives" labelling from the prepared meal to maintain consistency among the labeling on its rotisserie chickens and online presentations.
The plaintiffs are demanding unspecified monetary damages and want a class certification created for affected shoppers who purchased the chicken, but Costco is asking for the complaint to be dismissed with prejudice, alleging that the "amendment is futile because Plaintiffs cannot change the facts to salvage their claims."
A judge will hear the motion to dismiss on August 13, marking a critical juncture in the case that could have significant implications for Costco and the way it labels its products.
