Costco Wholesale Corporation is currently embroiled in a lawsuit alleging that the retail giant misled consumers about the presence of preservatives in its popular rotisserie chicken.

Filed on January 22, the class action lawsuit by two Californian women claims that Costco falsely markets its Kirkland Signature Seasoned Rotisserie Chicken as free from preservatives.

The lawsuit argues that the chickens actually contain two preservatives: carrageenan and sodium phosphate.

The plaintiffs assert that by discreetly including these additives on the chicken’s label, Costco has effectively deceived consumers, potentially costing them millions of dollars.

Carrageenan is often used in meats as a thickening agent, while sodium phosphate is employed to retain moisture and enhance flavor.

Although the Food and Drug Administration considers these ingredients safe, some studies suggest that carrageenan may cause gut irritation, and excessive sodium phosphate could lead to kidney and heart complications.

The lawsuit alleges that Costco violated several consumer protection laws in California and Washington State, where the company is headquartered.

Additionally, the complaint said that Costco displays large in-store signage and online product listings stating ‘No Preservatives.’

The Costco Wholesale Corporation is facing a lawsuit after it was accused of falsely advertising its rotisserie chicken as ‘preservative free’

The complaint claims the beloved chickens contain two added preservatives: carrageenan and sodium phosphate. Costco said in a statement that it uses those ingredients for  ‘to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities’ 

The company told USA TODAY in a statement that those labels have been taken down.

‘To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/online presentations, we have removed statements concerning preservatives from the signs and online presentations,’ the company said.

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

However, the two plaintiffs, Bianca Johnston and Anastasia Chernov, purchased their birds in 2024 and 2025 from Costco stores in California and claimed they would never have bought the product if the advertising had been clear or if they had paid less.

‘Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,’ said California Managing Partner of the Almeida Law Group.

‘Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair.’

The chickens caused outrage in 2024 after it switched its packaging from its hard shell plastic containers as pictured, to plastic bags

The pair is seeking that Costco stop misleading its customers, offer refunds, and return the profits received from allegedly false advertising.

Johnston and Chernov hope to purchase the chickens in the future if they are actually preservative-free.

The Daily Mail has reached out to Costco for comment.

The warehouse retailer sells over 100 million rotisserie chickens annually, making it one of the most popular foods in the country, said Chief Executive Ron Vachris, as cited by the Seattle Times.

The birds were scrutinized after they were moved from their hard-plastic-shelled containers to plastic bags in 2024.

Shoppers still complain about the bags’ leak-prone design, which causes a mess in trollies, cars, and fridges by allowing meat juice to leak out.