Costco responds to rotisserie chicken lawsuit

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Costco will ask a California district court to dismiss a lawsuit that claims the company falsely advertised its $5 rotisserie chicken as preservative-free.

Lawyers representing Costco said in court documents on Thursday, June 4, that Costco would file its claim in mid-August, according to court documents reviewed by USA TODAY.

Back in January, two California women filed a proposed class action lawsuit alleging that Costco violated multiple laws when it claimed Kirkland Signature seasoned rotisserie chicken contained “no preservatives.”

The plaintiffs alleged that the chicken contains sodium phosphate and carrageenan, which they call preservatives. The plaintiffs allege that Costco “systematically defrauded customers of tens or even hundreds of millions of dollars” through false advertising by featuring these ingredients and signs.

Shortly after customers first filed their declarations in January, Costco told USA TODAY that the company removed the signage.

But in its latest filing this month, Costco said it did not violate any of the laws at issue, including the Washington Consumer Protection Act, the Washington Consumer Protection Act, the California Unfair Competition Act, and the California False Advertising Act.

One of these laws, California’s Unfair Competition Law, prohibits illegal, unfair or deceptive business practices and misleading advertising.

USA TODAY reached out to the plaintiffs’ attorneys for comment on Thursday, June 11, but did not immediately receive a response.

What are the plaintiffs seeking?

Plaintiffs argued in January that Costco chicken contains sodium phosphate, which controls pH, reduces fat oxidation, and slows microbial growth and spoilage.

They also claimed that Costco’s rotisserie chicken contains carrageenan, which is used “to preserve texture and extend shelf life.”

In the first case, plaintiffs’ attorneys requested class certification to include a subclass of U.S. customers who purchased Costco’s rotisserie chickens and a subclass of customers who purchased chickens in California. They also asked for unspecified financial damages and for Costco to stop advertising its chicken as preservative-free.

What is Costco’s claim?

Costco noted in its complaint that the plaintiffs’ lawsuit focuses on in-store and online signage advertising its chicken as “preservative-free.” Costco pointed out that the plaintiffs take issue with the ingredients sodium phosphate and carrageenan, which they call preservatives.

“This theory is fatally flawed. Plaintiffs’ own sources contradict this theory, U.S. Food and Drug Administration (FDA) regulations discredit it, and product labels dispel it,” Costco and its attorneys continued.

Costco added that the FDA classifies carrageenan as an emulsifier, stabilizer, or thickener, not a preservative.

“The rotisserie chicken label clearly lists these ingredients as ingredients in the product’s seasoning,” Costco wrote.

Costco added in its June 4 filing that rotisserie chicken contains three basic ingredients: a whole chicken, water and a seasoning mix. Seasoning mixes are labeled on the product packaging and broken down to show customers what’s in the seasoning. According to the filing, the seasoning is made with salt, sodium phosphate, modified food starches (potato, tapioca), potato dextrin, carrageenan, sugar, glucose, and spice extracts.

Costco says there’s no price premium

Costco also cited plaintiffs’ claims in the June 4 lawsuit that there is a “price premium” that allows the company to charge higher prices for chicken because the chicken is advertised as preservative-free. According to recent filings, the plaintiffs accused Costco of removing its “No Preservatives” sign after filing the lawsuit.

“Rotisserie chicken prices remain unchanged at the familiar $4.99,” Costco wrote on June 4. “This admission is fatal. There is no price premium, and there never has been.”

“Costco sells accurately labeled, fully cooked and seasoned chicken,” the company said in a June filing.

Costco said in a June 4 filing that it will ask the court to deny the plaintiffs’ request to ban the company from using “no preservatives” signs.

Costco is scheduled to appear in the U.S. District Court for the Southern District of California in San Diego on August 13th at 10 a.m. to seek dismissal.

Plaintiffs’ attorneys are sharing information about the case at www.almeidalawgroup.com.

Saleen Martin is a reporter on USA TODAY’s Trends team. She is from Norfolk, Virginia (757). Email sdmartin@usatoday.com.

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