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Costco fires back at lawsuit over rotisserie chicken labeling

Created at 10 Jun · 10:00 PM1 source↑ Market-relevant
IN SHORT

Costco is contesting a class-action lawsuit accusing it of falsely advertising its rotisserie chicken as preservative-free. The company argues the ingredients sodium phosphate and carrageenan are not legally defined as preservatives and are clearly listed.

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Key Numbers

$4.99Costco rotisserie chicken price
Jan. 22Lawsuit filing date

Who's Involved

Costco
Membership club facing a lawsuit over rotisserie chicken labeling
Almeida Law Group
Law firm representing the plaintiffs in the lawsuit
Wesley M. Griffith
Partner at Almeida Law Group, commenting on consumer reliance on labels
Charles Sipos
Attorney representing Costco in the lawsuit
Costco fires back at lawsuit over rotisserie chicken labeling

↳ Why This Matters

The lawsuit highlights the increasing scrutiny on food labeling and marketing claims, potentially impacting consumer trust and company practices. Costco's defense challenges the definition of 'preservatives' and the basis for price premium claims in such cases.

Key facts

  • Costco is responding to a class-action lawsuit filed in Southern California.
  • The lawsuit alleges Costco falsely advertised its rotisserie chicken as containing 'no preservatives'.
  • Plaintiffs claim the chicken contains sodium phosphate and carrageenan.
  • Costco's legal team argues the additives are not legally defined as preservatives.
  • The company stated the ingredients are listed as part of the meat's seasoning.
  • Costco maintained its rotisserie chicken price has not changed since the label was removed.

Costco is actively contesting a class-action lawsuit that accuses the company of misleading consumers regarding its popular rotisserie chicken. Filed in a Southern California court, the lawsuit claims that Costco falsely advertised its $4.99 chicken as having "no preservatives," when in fact, it contains sodium phosphate and carrageenan.

Attorneys for the plaintiffs, represented by Almeida Law Group, assert that consumers rely on such prominent claims, and that Costco's ingredient list contradicts its marketing, which they deem unlawful. Wesley M. Griffith, a partner at Almeida Law Group, stated that consumers reasonably rely on clear claims like 'No Preservatives,' especially for food intended for families.

However, Charles Sipos, the attorney representing Costco, has rejected the lawsuit's premise, calling it "fatally flawed." In a recent court filing, Sipos argued that sodium phosphate and carrageenan are not classified as preservatives under FDA regulations. He further contended that these ingredients are clearly mentioned in the ingredient list as part of the chicken's seasoning.

The plaintiffs' legal team had previously accused Costco of systematically defrauding customers of millions by marketing its Kirkland Signature Seasoned Rotisserie Chickens as preservative-free. Sipos countered this by noting that the price of the rotisserie chicken has remained at $4.99 even after Costco removed the "no preservatives" label following the lawsuit's initiation. He also pointed out that the plaintiffs failed to identify any competitor selling a whole rotisserie chicken for less than $4.99.

Frequently asked questions

Costco is being sued for allegedly falsely advertising its rotisserie chicken as preservative-free when it contains sodium phosphate and carrageenan.

Sodium phosphate is often used to extend shelf life and retain moisture in meat, while carrageenan, derived from seaweed, is used as a stabilizer or thickener.

Costco argues that these additives are not legally defined as preservatives by the FDA and are clearly listed as part of the seasoning.

Costco states that the price of the rotisserie chicken has remained $4.99 even after the "no preservatives" label was removed.

What Happens Next

01The court will consider Costco's arguments against the lawsuit.
02Further legal filings and potential settlement discussions may occur.

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Cadence

How It Developed

A class-action lawsuit was filed against Costco in Southern California court.
The lawsuit accuses Costco of falsely advertising its rotisserie chicken as preservative-free.
Plaintiffs claim the chicken contains sodium phosphate and carrageenan, contradicting marketing.
Costco's attorney called the lawsuit 'fatally flawed' in a court filing.
Costco argues the additives are not defined as preservatives by the FDA and are listed in the seasoning.
The plaintiffs' attorneys accused Costco of cheating customers out of millions of dollars.
Costco noted its rotisserie chicken price remained $4.99 after the 'no preservatives' label was removed.

Sources

T1
Costco, sued over beloved product, fires backThe Hill

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