Costco Faces Lawsuit Over 'Preservative-Free' Rotisserie Chicken
In a blow to one of Costco's most iconic and beloved products, the wholesale giant is facing a class-action lawsuit in the United States over its Kirkland Signature rotisserie chicken. Filed by two dissatisfied customers from California, the suit accuses Costco of false advertising by labeling the chicken as "preservative-free" while secretly including additives like sodium phosphate and carrageenan. This controversy, which broke earlier this year, has sparked widespread discussion among shoppers, especially in Canada where the product is a staple for budget-conscious families.
The Heart of the Complaint
The lawsuit, lodged in early 2026, claims that Costco has been systematically misleading consumers for years. According to the plaintiffs, the rotisserie chicken—famous for its juicy tenderness and affordable $4.99 price tag—contains preservatives that contradict the "no preservatives" signage prominently displayed in stores, on Costco's website, and even on packaging. The offending ingredients? Sodium phosphate, which helps retain moisture, and carrageenan, a seaweed-derived thickener that maintains texture during cooking.
These additives, while approved by health authorities like the FDA, are at the center of the deception allegation. The plaintiffs argue that by omitting these from labels and promotions, Costco has defrauded millions of customers, potentially costing the company tens or hundreds of millions in unjust profits. The suit invokes consumer protection laws in California and Washington state, where Costco has a massive presence.
Who Are the Plaintiffs?
At the forefront are two California women who say they were duped into buying the chicken under false pretenses. Ironically, despite their grievances, both have expressed intentions to continue purchasing the product, highlighting its enduring popularity. If certified as a class action, the lawsuit could encompass every U.S. Costco member who has bought rotisserie chicken, amplifying its scope dramatically. The plaintiffs are seeking unspecified damages, which could include refunds and punitive awards to penalize the alleged misconduct.
Costco's Response: Transparency or Damage Control?
Costco wasted no time addressing the uproar. In a statement to USA Today on January 28, 2026, the company announced it had removed all "preservative-free" signage from its warehouses, website, and displays. "To ensure consistency between the labeling of our rotisserie chickens and the signage in our warehouses/online presentations, we have removed any mention related to preservatives," the spokesperson explained.
The retailer defended its use of the additives, noting that sodium phosphate and carrageenan are essential for keeping the chicken moist, textured, and consistent during the high-heat roasting process. Both ingredients are deemed safe by regulatory bodies, including the USDA and FDA, and are common in processed poultry products. Costco emphasized that the chicken remains a high-quality, fresh product, roasted daily in-store without hormones or antibiotics—just with these functional aids to enhance the eating experience.
Why Do These Additives Matter?
For health-conscious consumers, the revelation hits hard. Carrageenan has been controversial in recent years, with some studies linking it to gut inflammation, though major health organizations maintain it's safe in food amounts. Sodium phosphate, meanwhile, is a staple in many meats to prevent dryness but can raise concerns for those with kidney issues due to its phosphorus content. The lawsuit taps into broader anxieties about food transparency, especially as shoppers increasingly scrutinize labels for hidden additives.
In Canada, where Costco operates over 100 warehouses, the rotisserie chicken is equally popular. While the lawsuit is U.S.-centric, Canadian regulations under Health Canada align closely with FDA standards, meaning the ingredients are likely similar. Costco Canada has not issued a separate statement, but experts predict the company will harmonize labeling across borders to avoid similar backlash north of the 49th parallel.
Implications for Canadian Shoppers and Beyond
For the average Costco member in cities like Toronto, Vancouver, or Montreal, this news might prompt a second look at that steaming bird in the cooler. The rotisserie chicken has long been a loss-leader for Costco, drawing crowds and boosting membership loyalty with its unbeatable value. But if the lawsuit succeeds, it could force industry-wide changes in how retailers describe processed foods.
Consumer advocates praise the suit as a win for transparency. "In an era where 'clean label' claims are everywhere, companies like Costco must back up their words with facts," says food policy expert Dr. Elena Vasquez. She notes that while the additives aren't harmful, the misleading marketing erodes trust. On the flip side, defenders of Costco argue the chicken's quality speaks for itself—tender, flavorful, and far superior to many competitors.
What Happens Next?
The case is still in its early stages, with no trial date set. If certified, it could balloon into one of the largest food labeling suits in recent memory. For now, Costco shoppers can rest assured the product hasn't been recalled; it's still flying off shelves. But the saga underscores a key lesson: always read the fine print on those ingredient lists.
As the legal battle unfolds, it serves as a reminder of the power consumers hold. In Canada, where food affordability is a hot topic amid rising grocery prices, this could spark calls for stricter labeling rules. Whether you're grabbing a whole bird for dinner or shredding it for salads, the Costco rotisserie chicken remains a go-to—but now with a asterisk on its "natural" appeal.
This story is developing, and Everythiiing.com will keep you updated on any rulings or changes to Costco's practices. Have you been buying Costco's rotisserie chicken? Share your thoughts in the comments below.
