Costco Faces Lawsuit Over Its Iconic $4.99 Rotisserie Chicken. It All Comes Down to 1 Word

Costco is facing a class-action lawsuit in California alleging false advertising regarding its popular $4.99 rotisserie chickens. The plaintiffs claim Costco advertised the chickens as “preservative-free” while using ingredients like sodium phosphate and carrageenan, which the lawsuit argues function as preservatives. Costco has since removed the “preservative-free” claim from its signage and online presentations.

The core of the legal dispute hinges on the definition of “preservative.” Costco maintains that while these ingredients support moisture retention and product consistency, they aren’t primarily used as preservatives, citing the FDA’s categorization of them as anticaking agents, emulsifiers, and stabilizers. The lawsuit distinguishes between “preservatives” and “ingredients that act as preservatives,” arguing consumers don’t expect the latter in a product labeled “preservative-free.”

Both sodium phosphate and carrageenan are FDA-approved, but some concerns exist regarding their potential health effects. Sodium phosphate, while widely used, can have laxative effects and, in high doses, potentially cause kidney damage. Carrageenan, derived from seaweed, is generally considered safe but hasn’t been thoroughly studied, and some individuals may experience allergic reactions.

(Source：Inc)