Costco’s rotisserie chicken has long been a cult favorite — a budget-friendly staple that sells more than 157 million units annually. But now, the Kirkland Signature bird is at the center of a legal battle. A proposed class-action lawsuit filed in the U.S. District Court for the Southern District of California on January 22, 2026 claims Costco falsely advertised the chicken as containing “no preservatives.”
The Allegations
According to the lawsuit, Costco’s marketing — from in-store signage to its website — created the impression that the rotisserie chicken was preservative-free. Plaintiffs argue this was deceptive, as the product allegedly contains sodium phosphate and carrageenan, both considered preservatives. The suit further claims that any mention of these ingredients appeared only in small print on packaging, without clear explanation of their function.
The plaintiffs allege that Costco “systemically cheated customers out of tens, if not hundreds, of millions of dollars” by promoting the chicken as preservative-free. Given the chain’s massive sales volume, the case could have significant financial repercussions if the court rules against Costco.
Costco’s Response
As of now, Costco has not issued a detailed public statement on the lawsuit. The company has previously defended its rotisserie chicken as a high-quality, affordable product, but the new claims raise questions about transparency in food labeling.
This isn’t the first time Costco’s rotisserie chicken has drawn scrutiny. In past years, critics have raised concerns about the environmental impact of the company’s poultry operations. The new lawsuit shifts focus to consumer trust and labeling accuracy, highlighting growing demand for honesty in food marketing.
What Happens Next
The case is still in its early stages, with no ruling yet. If the lawsuit proceeds, it could force Costco to change its labeling practices or even reformulate its rotisserie chicken. For now, the $5 bird remains on shelves, but its reputation may be at risk.
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