Costco’s famous $4.99 rotisserie chicken is facing fire in a proposed lawsuit alleging the big box store falsely advertised that its birds could not be preserved.
Two California consumers say Costco is misleading customers nationwide by prominently advertising its rotisserie chicken as preservative-free, while cleverly listing two additional preservatives — sodium phosphate and carrageenan — in fine print on the ingredients list.
“Costco Wholesale Corporation systematically bilked customers out of tens—if not hundreds—of millions of dollars by falsely advertising its Kirkland Signature Seasoned Rotisserie Chicken as ‘preservative-free,'” according to the complaint filed in California District Court on Thursday.
Sodium phosphate and carrageenan are common food additives. Sodium phosphate is used to preserve moisture and improve flavor in processed foods, while carrageenan is added to thicken and stabilize products such as meat.
Studies have linked excessive sodium phosphate intake to kidney problems and cardiovascular risks, and carrageenan to digestive inflammation and intestinal irritation. However, the Food and Drug Administration says both are safe to use at approved levels.
Costco did not immediately respond to The Times’ request for comment, but in a statement sent to USA Today that it has removed the statements from the store and online to “maintain consistency between the labeling of our rotisserie chickens and our store brands/online presentations.”
The two plaintiffs, Bianca Johnston and Anatasia Chernov, purchased Costco rotisserie chickens from stores in Victorville in 2024 and San Marcos in 2025 believing they could not be preserved because of clear signs stating so, according to the complaint. Both consumers say they prefer to buy junk food if possible.
The lawsuit alleges that without accurate advertising, customers cannot make informed decisions about buying chicken and compare prices to Costco’s competitors’ products.
In the photos included in the complaint, Costco’s signs promote the chicken as USDA Grade A and free of artificial colors, preservatives or flavors.
With a price tag of less than $5, Costco’s popular rotisserie chicken is cheaper than similar products at other grocery stores. Retail analysts have described it as a “loss leader,” meaning it sells too little to be profitable enough to attract customers to the store and spend money on other items.
The case comes as Robert F. Kennedy, Jr.’s Make America Healthy Again movement is bringing greater national scrutiny to highly processed foods that is contributing to high demand for products touted as preservatives.
The complaint alleges that Costco violated consumer laws in California, where the chickens were purchased, and in Washington, where Costco is headquartered. The plaintiffs want to bring a class action lawsuit on behalf of people who bought rotisserie chicken in California and across the country.
