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.
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.
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.
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