Costco is famous for its $1.50 hotdog/soda combo and its inexpensive rotisserie chicken. Costco CEO Ron Vachris has vowed that the hot dog will remain the same price as long as he’s in charge. The company is motivated to keep the rotisserie at an affordable price because it’s a big membership driver. Costco has always marketed its Kirkland brand rotisserie chicken as being preservative free. Earlier this year, two California customers filed a class action lawsuit against them for false advertising. The two women who filed the suit claimed that Costco’s chicken contains two preservatives, carrageenan and sodium phosphate. They also allege that the store charges more money for the chicken because of the label and are seeking monetary damages.
Costco defended itself in court last week, arguing that carrageenan and sodium phosphate are not classified as preservatives under the FDA. Their lawyer also noted that the women’s claims that Costco was charging extra because of the “no preservatives” label was false because the Kirkland rotisserie’s been priced at $4.99 for decades. Here’s more information on the lawsuit:
Costco is firing back at the class action lawsuit that accused its popular $5 rotisserie chicken of being falsely advertised.
Two Costco customers said in January the Kirkland Signature Seasoned Rotisserie Chicken contains preservatives despite being marketed as preservative-free. Costco filed a motion to dismiss the case on Thursday in the U.S. District Court for the Southern District of California, arguing the claim is a misunderstanding of the ingredients.
According to the lawsuit, the rotisserie chicken contained carrageenan and sodium phosphate, despite the “no preservatives” label, which the suit argues violates Washington’s Consumer Protection Act, California’s Consumers Legal Remedies Act and other statutes.
The lawsuit aims to stop Costco from falsely advertising and seeks monetary damages.
Carrageenan is a natural additive from seaweed that is commonly used to thicken and emulsify foods. Sodium phosphate has similar uses.
Attorney Charles Sipos, representing Costco, called the claims “fatally flawed” as the substances are not considered preservatives under U.S. Food and Drug Administration regulations, according to the Seattle Times. Additionally, he rejected arguments the “no preservatives” claim allowed Costco to charge a premium.
“They allege that Costco’s ‘No Preservatives’ statement enabled the company to charge more for Rotisserie Chicken,” Sipos wrote in the motion. “Yet, the Amended Complaint does not identify a single ‘competitor’ who prices a whole rotisserie chicken for sale for less than $4.99.”
While the plaintiffs attest Costco falsely capitalized on consumer demand for a “clean label,” the company maintains the substances are merely part of the chicken’s seasoning.
According to USA Today, the two customers who initiated the lawsuit said they still plan to purchase the rotisserie chicken again, yet one noted that she “cannot rely on Costco’s preservative-related representations for the product unless those representations are accurate and consistent with the product’s ingredients.”
The price tag argument is total BS. Costco’s rotisserie chicken is much larger and cheaper than most – if not all – of the grocery stores in my area. You get so much more meat off of it! I’m a big fan of the Kirkland rotisserie chicken, so this report made me nervous. I did some research and found that sodium phosphate is used for flavor and water retention while carrageenan is used to retain moisture in order to keep chicken juicy and tender. Both are generally regarded as safe. Costco has since removed the “no preservatives” label from the rotisserie’s packaging, so it must have concerned their legal team on some level. It’s wild that the two customers who filed the suit admitted that they still plan on buying and eating it. I’m not a lawyer, but it seems easy to prove that they have no grounds for a lawsuit, especially if they’re still eating the product they’re suing over. It sounds like an Arrested Development plot.
Photos are screenshots from AllRecipes on YouTube and EyeWitness News 5.
Hilarious to even come up with such a lawsuit. Madness
Carrageenan is literally derived from red algae. I use it sometimes in my skincare products instead of xanthan gum. What a bizarre and unnecessary waste of court resources!
this is a frivolous lawsuit that I hope Costco wins and that the plaintiffs have to pay court costs & Costco’s legal fees. Costco should also cancel their memberships