Costco sued over its $4.99 rotisserie chicken. Here's why

Core Viewpoint - A proposed class action lawsuit has been filed against Costco, alleging false advertising regarding its rotisserie chicken, which is claimed to contain preservatives despite being marketed as having "no preservatives" [1][2]. Group 1: Lawsuit Details - The lawsuit was filed on January 22 in the U.S. District Court for the Southern District of California, accusing Costco of misleading customers and potentially cheating them out of tens to hundreds of millions of dollars [1][2]. - The complaint includes allegations of violations of multiple consumer protection laws in California and Washington state, where Costco is headquartered [3]. - The lawsuit was initiated by two women from California, highlighting the issue of misleading advertising practices [3]. Group 2: Company Response - Costco has responded by stating that it has removed the misleading signage regarding preservatives from its stores and online presentations [4]. - The company clarified that carrageenan and sodium phosphate are used in their rotisserie chicken to maintain moisture retention, texture, and product consistency, and both ingredients are approved by food safety authorities [4]. Group 3: Advertising Claims - The lawsuit cites a specific in-store advertisement claiming that the Kirkland Signature Seasoned Rotisserie Chicken contains no preservatives, artificial flavors, colors, MSG, or gluten [5]. - The complaint alleges that sodium phosphate and carrageenan, both preservatives, are included in the product, contradicting the advertising claims [6]. - It is noted that the preservatives are listed on the packaging in smaller print, which the lawsuit argues is misleading [7]. Group 4: Legal Allegations - In addition to false advertising, the lawsuit accuses Costco of violating unfair competition laws by engaging in deceptive business practices that misled consumers into paying a premium for the rotisserie chicken [8].