Costco Sued Over Rotisserie Chicken Labeling: Here's What to Know

Two California customers filed a proposed class-action lawsuit against Costco, claiming the wholesale club falsely advertised its rotisserie chicken as containing no preservatives.

Audrey Simons

Published: 1/29/2026, 2:21:49 PM EST

Costco Sued Over Rotisserie Chicken Labeling: Here's What to Know — A Costco Wholesale warehouse sign is seen outside of a store in Silver Spring, Md., on Aug. 5, 2023. (Mandel Ngan/AFP via Getty Images)

Two California shoppers who say they believed Costco's signature rotisserie chicken was preservative-free have filed a proposed class-action lawsuit against the membership-only wholesale club, alleging the retailer misled customers with its labeling.

Plaintiffs Bianca Johnston of Big Bear and Anatasia Chernov of Escondido submitted the complaint last week in the U.S. District Court for the Southern District of California.

In it, they claim Costco "systemically cheated customers out of tens—if not hundreds—of millions of dollars" by marketing its chicken as having "no preservatives."

The plaintiffs assert Costco's ready-to-eat seasoned chicken contains the artificial additive sodium phosphate and carrageenan, which is made from red seaweed.

Although carrageenan is naturally derived, it is highly processed, and some studies have linked it to adverse health effects, including gastrointestinal problems and, in certain cases, cancer. Sodium phosphate has also been associated with cardiovascular and bone health risks.

Images of in-store signage and the online product listing for Costco's $4.99 rotisserie chicken were included in the court filing. They indicate the product is free of gluten, MSG, artificial flavors, synthetic coloring, and preservatives, which are often added to foods to prevent spoilage and maintain flavor and texture.

The lawsuit alleges that Costco's "false and unlawful 'no preservative' claims" violated consumer protection laws in California and Washington, where the company is headquartered.

"Because consumers, including Plaintiffs, want to know what is in their food, and relatedly what goes into their bodies, they consider the presence or absence of preservatives when purchasing food products," the complaint reads.

"Costco's 'No Preservatives' Representations are false and misleading, as they are inconsistent with the product’s actual added ingredients, namely sodium phosphate and carrageenan."

Customers wait in line to check out at a Costco store in Novato, Calif., on Dec. 11, 2024. (Justin Sullivan/Getty Images) — Customers wait in line to check out at a Costco store in Novato, Calif., on Dec. 11, 2024. Justin Sullivan/Getty Images

NTD reached out to Costco and the plaintiffs' lawyers for comment, but responses were not immediately received before publication time.

However, the retailer told USA Today that signage for the rotisserie chicken has been taken down. Claims that the product is free of preservatives no longer appear on the company's website.

"To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/on-line presentations, we have removed statements concerning preservatives from the signs and on-line presentations," Costco told the publication, acknowledging the presence of the two food additives in its product.

"We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking," the company shared. "Both ingredients are approved by food safety authorities."

The complaint seeks to certify a nationwide class of individuals in the United States who have purchased the Kirkland-brand rotisserie chicken, as well as a California subclass for those who bought it in the state. The plaintiffs are also seeking various monetary damages related to the case.