Costco's popular bargain meal at center of new lawsuit

Core Viewpoint - Costco is facing a class-action lawsuit for allegedly misleading advertising regarding its Kirkland Signature Seasoned Rotisserie Chicken, claiming it contains no preservatives while it actually includes two added preservatives: sodium phosphate and carrageenan [1][2]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. District Court for the Southern District of California, asserting that Costco's advertising creates a false impression that the Rotisserie Chicken is preservative-free [2]. - Plaintiffs argue that customers make purchasing decisions based on the "preservative free" label and were unable to ascertain the presence of added preservatives before purchase [3]. - The lawsuit claims that ingredient disclosures, if present, were inadequately displayed in small print and did not clarify the preservative function of the ingredients [5]. Group 2: Consumer Trust and Company Accountability - The lawsuit emphasizes that consumers rely on clear claims like "No Preservatives" when making food choices for themselves and their families [7]. - Legal representation for the plaintiffs stated that Costco's ingredient list contradicts its marketing claims, seeking to hold the company accountable for misleading its customers [8]. Group 3: Market Impact - Following the news of the lawsuit, Costco's stock traded around $977, reflecting a decrease of approximately 0.5%, although shares have increased over 13% year-to-date [11].