Costco is facing a proposed class-action lawsuit over its famous $4.99 Kirkland Signature rotisserie chicken. The plaintiffs allege the retailer misled customers by promoting the chickens as containing “no preservatives”, despite including additives like sodium phosphate and carrageenan, which function as preservatives.
Details of the complaint
Filed on Jan. 22, 2026, in the U.S. District Court for the Southern District of California, the lawsuit claims that Costco’s signage and online product descriptions create a misleading impression. The plaintiffs argue that the preservatives are only listed in small print on the ingredient label, making it difficult for consumers to know before purchase. They say they would not have bought the chicken—or would have paid less—if they had known about the additives.
Scope and demands
The lawsuit seeks class certification to cover anyone in the U.S. who purchased the chicken, with a proposed subclass for California buyers. Plaintiffs are seeking unspecified monetary damages and changes to labeling and marketing practices to prevent future consumer confusion.
Costco responds
In response, Costco removed the “no preservatives” language from signage and online listings, stating that its labeling is being updated for accuracy. Officials emphasized that the additives help with moisture retention and texture and are approved by food safety authorities, without directly addressing the lawsuit.
What are sodium phosphate and carageenan?
Sodium phosphate and carrageenan are common food additives used in many processed products, including rotisserie chicken. Sodium phosphate is a salt that helps retain moisture, maintain texture, and improve shelf life, while carrageenan (derived from seaweed) acts as a thickener and stabilizer to keep meat juicy and consistent in appearance.
Both are approved by food safety authorities, but because they serve some of the same functions as preservatives, their inclusion has drawn scrutiny from consumers seeking products labeled as “all-natural” or “preservative-free.”
Why it all matters
The rotisserie chicken has long been a loss leader for Costco, drawing millions of customers to its stores (especially for its frozen food selection). With tens of millions sold annually, the case raises broader questions about food labeling, consumer expectations, and the transparency of “clean” or minimally processed food marketing.
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