"Preservative-Free?"... Costco's Hit Product '7,000 Won Chicken' Faces Class Action Lawsuit

"Falsely Advertising Chicken with Additives as 'Preservative-Free'"

Costco, the American warehouse retailer, is facing a class action lawsuit over allegations that it falsely advertised its popular deli item, rotisserie chicken, as "preservative-free." In reality, the product is known to contain additives with preservative functions.

'Kirkland Signature Rotisserie Chicken' sold at Costco for $4.99. Photo by Reuters Yonhap News

On January 29 (local time), The New York Times and other local media reported that two women residing in California filed a lawsuit against Costco in the U.S. District Court for Southern California on January 22. They claimed that the labeling and advertising of the "Kirkland Signature Rotisserie Chicken," sold for $4.99 (about 7,200 won), were misleading.

According to the complaint, Costco promoted the chicken as a "no preservatives" product on store displays and its official website. The company also highlighted phrases such as "gluten-free" and "no artificial flavors." However, the plaintiffs argue that the actual ingredient list includes sodium phosphate and carrageenan, both of which serve as preservatives, making the advertising inconsistent with the product’s contents.

The U.S. Food and Drug Administration (FDA) permits sodium phosphate as a food additive. Sodium phosphate helps preserve the color and moisture of foods and maintains the quality of frozen products. Carrageenan, an additive extracted from seaweed, is also approved by the U.S. Department of Agriculture (USDA) for use in food products.

The plaintiffs pointed out that while Costco prominently displayed the "no preservatives" claim on store signage and advertising, the ingredient list, which includes these additives, was printed in small text on the back, making it difficult for consumers to notice. The plaintiffs argued that this method of providing information is insufficient to counterbalance the prominent marketing claims.

Wesley Griffiths, California Managing Partner at Almeida Law Group, which is handling the case, stated, "Consumers trust clear expressions like 'no preservatives' when choosing food for themselves and their families. Costco’s ingredient labeling contradicts its marketing message, which is both unfair and illegal."

In response, Costco stated, "We have removed all references to preservatives from the rotisserie chicken’s label, store signage, and website to ensure consistency in messaging." The company added, "Carrageenan and sodium phosphate are used during preparation to retain moisture, improve texture, and maintain product consistency, and both ingredients have been approved by food safety authorities."