Costco Hit with Class-Action Lawsuit Regarding Rotisserie Chicken Quality
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Costco is currently facing a class-action lawsuit that accuses the warehouse giant of misleading advertising regarding its Kirkland Signature Seasoned Rotisserie Chicken. According to court documents, the lawsuit claims that Costco’s in-store signage and website create a misleading impression that the chicken is free from preservatives.
Filed in the U.S. District Court for the Southern District of California, the lawsuit asserts that the representations made by Costco are false. It specifically points out that the Rotisserie Chicken contains two added preservatives: sodium phosphate and carrageenan. The plaintiffs argue that these ingredients contradict the overall impression created by Costco’s “No Preservatives” claims.
The lawsuit, brought forth by Anatasia Chernov and Bianca Johnston, states, “The presence of sodium phosphate and carrageenan, added preservatives which function as such in the Rotisserie Chicken, contradict the overall net impression that Costco’s ‘No Preservatives’ representations and advertising create.”
COSTCO’S LESSER-KNOWN MEMBERSHIP BENEFITS, EXPLAINED
The plaintiffs contend that consumers, including themselves, make purchasing decisions based on whether a food product is “preservative-free.” They claim they were unable to determine the presence of added preservatives before purchasing the chicken.
A shopper picks up a rotisserie chicken inside a Costco store in Napa, California. (David Paul Morris/Bloomberg via Getty Images)
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The lawsuit further claims that any mention of the preservatives, if disclosed at all, was relegated to small print on the back of the label, failing to adequately inform consumers about their preservative function. The plaintiffs argue that these disclosures do not counteract the prominent “no preservatives” claims made by Costco.
A customer selects a rotisserie chicken at a Costco store in Florida. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
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The lawsuit also claims that Costco had superior knowledge about the function of these ingredients but failed to disclose this information to consumers. Wesley Griffith, the California managing partner at Almeida Law Group LLC, representing the plaintiffs, stated, “Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat.” He emphasized that “Costco’s own ingredient list contradicts its marketing. Our lawsuit seeks to hold Costco accountable for deceiving its customers.”
The company’s Kirkland Signature Seasoned Rotisserie Chicken is at the center of the lawsuit. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
FOX Business reached out to Costco for comment regarding the lawsuit.
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As of midday trading, Costco’s stock was priced around $977, reflecting a decrease of about 0.5%. However, shares have increased by more than 13% year-to-date.
The ‘Barron’s Roundtable’ panel discusses how big-box retailers are outperforming their competition through value, innovation, and revenue models.
Costco is currently facing a class-action lawsuit that accuses the warehouse giant of misleading advertising regarding its Kirkland Signature Seasoned Rotisserie Chicken. According to court documents, the lawsuit claims that Costco’s in-store signage and website create a misleading impression that the chicken is free from preservatives.
Filed in the U.S. District Court for the Southern District of California, the lawsuit asserts that the representations made by Costco are false. It specifically points out that the Rotisserie Chicken contains two added preservatives: sodium phosphate and carrageenan. The plaintiffs argue that these ingredients contradict the overall impression created by Costco’s “No Preservatives” claims.
The lawsuit, brought forth by Anatasia Chernov and Bianca Johnston, states, “The presence of sodium phosphate and carrageenan, added preservatives which function as such in the Rotisserie Chicken, contradict the overall net impression that Costco’s ‘No Preservatives’ representations and advertising create.”
COSTCO’S LESSER-KNOWN MEMBERSHIP BENEFITS, EXPLAINED
The plaintiffs contend that consumers, including themselves, make purchasing decisions based on whether a food product is “preservative-free.” They claim they were unable to determine the presence of added preservatives before purchasing the chicken.
A shopper picks up a rotisserie chicken inside a Costco store in Napa, California. (David Paul Morris/Bloomberg via Getty Images)
COSTCO QUIETLY BOOSTS GAS REWARDS FOR BRANDED CREDIT CARD HOLDERS TO 5% CASH BACK
The lawsuit further claims that any mention of the preservatives, if disclosed at all, was relegated to small print on the back of the label, failing to adequately inform consumers about their preservative function. The plaintiffs argue that these disclosures do not counteract the prominent “no preservatives” claims made by Costco.
A customer selects a rotisserie chicken at a Costco store in Florida. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
COSTCO LAUNCHES EXCLUSIVE HIYO TONIC VARIETY PACK NATIONWIDE FOR A LIMITED TIME
The lawsuit also claims that Costco had superior knowledge about the function of these ingredients but failed to disclose this information to consumers. Wesley Griffith, the California managing partner at Almeida Law Group LLC, representing the plaintiffs, stated, “Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat.” He emphasized that “Costco’s own ingredient list contradicts its marketing. Our lawsuit seeks to hold Costco accountable for deceiving its customers.”
The company’s Kirkland Signature Seasoned Rotisserie Chicken is at the center of the lawsuit. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
FOX Business reached out to Costco for comment regarding the lawsuit.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
As of midday trading, Costco’s stock was priced around $977, reflecting a decrease of about 0.5%. However, shares have increased by more than 13% year-to-date.
