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They’re inexpensive. They’re plentiful. They’re sold in greasy plastic bags and they’re — by all reports — delicious.
In a time of skyrocketing food prices and turbulent economic times, Costco’s rotisserie chickens are, for many, a reliable meal mainstay. But a new lawsuit filed in a California court has a bone to pick with how the retailer advertises its beloved cooked birds.
That proposed class-action lawsuit, filed Jan. 22 in the U.S. District Court for the Southern District of California and viewed by CBC News, alleges that the retail giant “has systematically cheated customers out of tens — if not hundreds — of millions of dollars by falsely advertising its Kirkland Signature Seasoned Rotisserie chicken as containing ‘no preservatives.'”
The lawsuit, which has not yet been certified as a class action, notes Costco uses sodium phosphate and carrageenan, which extend shelf life and maintain texture. Costco has confirmed that it does indeed use these common ingredients.
And while the two ingredients are common in prepared foods, and federal regulators including Health Canada have listed them as safe, the lawsuit says it’s misleading to claim the chickens don’t use preservatives.
The two California women who initiated the lawsuit say in the complaint they wouldn’t have purchased the chicken, or would have paid less for it, had they known it contained preservatives.
The lawsuit contains photo examples of in-store and online advertising for the chickens that claim they have “no preservatives.” And previous images of Costco’s rotisserie chickens viewed by CBC News on various photo services do appear to bear the same claim.
“Consumers reasonably rely on clear, prominent claims like ‘no preservatives,’ especially when deciding what they and their families will eat,” Wesley M. Griffith of the Almeida Law Group, which is representing the plaintiffs, said in an online statement.
“Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair.”
In a statement to CBC News, Costco said it has removed its “no preservatives” references “to maintain consistency” among its labelling and signs.
“We use carrageenan and sodium phosphate to support moisture retention, texture and product consistency during cooking. Both ingredients are approved by food safety authorities.”
Seeking certification for 2 classes
In his online statement, Griffith said the legal team was “pleased” that Costco dropped its claims the chickens contained no preservatives.
“It’s confirmation of our core legal theory — the ‘no preservative’ claims were false,” Griffith said.
He did not respond to CBC’s question about whether they would continue to pursue the class action. The complaint notes that the plaintiffs demand a trial by jury, and that they’re seeking certifications for two classes — one for anyone in the U.S. who has purchased a Costco rotisserie chicken, and a sub-class for people in California.
The two California women who initiated the lawsuit both say in the complaint that they still intend to purchase Costco rotisserie chickens in the future, but that they “cannot rely on Costco’s preservative-related representations for the product.”
The lawsuit notes both women prefer to purchase foods that are preservative-free.
Health Canada’s mandatory front-of-package labelling went into effect on Jan. 1, and that means foods high in saturated fat, sugars and/or sodium now come with a warning. With skyrocketing rates of obesity, diabetes and heart disease in Canada, the subtle warning is getting mixed reviews.
California has seen a large push for health-conscious consumer products and labelling, becoming the first U.S. state to ban four potentially harmful additives in 2023, and has cracked down on ultra-processed foods and food dyes in school meals.
Health Canada oversees the use of additives in Canadian food. Sodium phosphate and carrageenan are both named on its list of permitted “emulsifying, gelling, stabilizing or thickening agents.”
The two are used in everything from dairy products and infant formula to “prepared meat.”
Grocery sticker shock
Canadians have been dealing with sticker shock for years as grocery prices have shot up by more than 30 per cent since 2020, according to the most recent data from Statistics Canada. Meat, in particular, has been one of the main drivers of price increases, and reports suggest that trend will continue in 2026.
Costco is suing the Trump administration, seeking a full refund of tariffs it’s paid. But the wholesale retailer’s lawsuit will depend on the outcome of a different case currently before the U.S. Supreme Court.
So, like the famous $1.50 food court hot dog, one of the main draws of Costco’s cooked chickens are their relatively consistent price. U.S. stores have sold chickens for $4.99 US for decades. In Canada it’s more like $7.99 to $9.00, which is still far less expensive than comparable cooked chickens sold at other major grocery stories.
And Canadian consumers seem to love them, with one Costco fan on Reddit describing “the faint smell of rotisserie chicken guiding you forward like incense” when you enter the store. Online, people share tips on how to stretch one chicken into multiple meals.
In 2023, Costco sold 137 million rotisserie chickens, according to the Seattle Times.
