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Costco Faces Class-Action Over Rotisserie Chicken Labeling

A class-action lawsuit challenges Costco’s rotisserie chicken label claims, alleging the presence of preservatives not disclosed to consumers.

Costco is facing a proposed class-action lawsuit over the labeling of its popular rotisserie chickens, with plaintiffs alleging deceptive marketing practices tied to its “clean” ingredient claims. The complaint, filed in a San Diego federal court, challenges Costco’s assertion that the chickens contain “no preservatives, MSG, gluten, artificial flavors, or colors,” according to TheStreet.

At issue are the additives sodium phosphate and carrageenan—ingredients the suit claims function as preservatives and should have been disclosed. Plaintiffs argue these substances undermine Costco’s “No preservatives” label and may mislead health-conscious consumers who rely on clear, accurate food labeling.

Costco has not yet publicly responded to the lawsuit, but the case could test how “clean label” language is regulated and interpreted in retail food marketing, especially for private-label products with strong customer trust.

Rotisserie chickens are a flagship item for Costco, priced at $4.99 since 2009, and have become a symbol of the retailer’s commitment to value and consistency. Legal scrutiny over product labeling could pose reputational risks and intensify the broader industry conversation around transparency and food additives.

More about Costco:

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