Fernando
Elite Member
- Joined
- Nov 7, 2016
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- Certified Residential Appraiser
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- California
Costco sued over its $4.99 rotisserie chicken. Here's why.
Disgruntled customers have filed a proposed class action lawsuit accusing wholesale retailer Costco of falsely advertising that its rotisserie chicken contains “no preservatives”.Filed on Jan. 22 in the U.S. District Court for the Southern District of California, the complaint, obtained by USA TODAY, alleges that Costco’s Kirkland Signature Seasoned Rotisserie Chicken contains two added preservatives, sodium phosphate and carrageenan.
The proposed class alleges that Costco “has systemically 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, brought on by two women in California, accuses Costco of violating multiple consumer protection laws, including in California and Washington state, where the wholesale retailer is headquartered.
Costco said in a statement to USA TODAY on Jan. 28 that the company has removed the signage.
In addition to accusing Costco of violating false advertising and consumer protection laws, the complaint says the retailer broke unfair competition laws by engaging in "unfair business acts and practices by tricking Plaintiffs and members of the California Subclass into purchasing or alternatively paying a premium for its rotisserie chicken by advertising the product with ‘no preservatives.’”
Despite the two California women initiating the lawsuit, both said they plan to purchase Costco's rotisserie chicken again, with one giving the caveat that she “cannot rely on Costco’s preservative-related representations for the product unless those representations are accurate and consistent with the product’s ingredients.”