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Costco is being sued for allegedly falsely advertising Kirkland Tequila as being made with 100% Blue Weber agave.
According to a proposed class action lawsuit filed Oct. 31 in the Southern District of Florida, nuclear magnetic resonance testing confirmed that the tequila contained too much sugar to be considered tequila.
Specifically, the federal lawsuit states that tequila “contains significant amounts of ethanol not derived from the agave plant and was therefore adulterated with ethanol other than that derived from the Blue Weber agave plant.”
USA TODAY reached out to Costco for comment on Nov. 14, but did not receive a response.
What does this lawsuit mean for consumers?
Shoppers typically pay a premium price for spirits designated as 100% Blue Weber agave. Without it, shoppers might have chosen a different product or paid less.
“If Plaintiffs and others similarly situated had known the truth about the ingredients in the products, they would not have purchased the products or would have purchased them at a lower price,” the complaint states.
What does the law say?
Mexican law requires tequila to be made from at least 51% blue agave, but tequila made with 100% blue agave is considered high quality. The lawsuit alleges that Costco is violating both Mexican and U.S. laws because the tequila contains ethanol from other sources. Ethanol is a type of alcohol produced by fermentation of plant sugars and is the central chemical process used to make most alcoholic beverages.
Patrón said tequila can only be legally produced in Mexico due to its designation of origin, which ensures that the spirit is made from the blue agave plant and produced in designated regions across the country.
“This legal protection protects the authenticity and quality of Mexico’s spirit by preventing other countries and regions from producing and selling their own versions of tequila,” the premium tequila brand said.
Costco sells three types of tequila: Blanco, Reposado, and Añejo. A search by USA TODAY on Nov. 14 found that tequila is still available for purchase on Costco’s website.
What does the lawsuit against Costco seek?
The proposed class action lawsuit accuses the company of negligence, negligent misrepresentation, unjust enrichment, and violations of Florida’s Deceptive and Unfair Trade Practices Act, which prohibits conduct that deceives or takes advantage of consumers.
The complaint also states that bottles of agave spirits, including tequila and mezcal, violate Federal Alcohol Administration (FAA) law if they do not provide accurate information in interstate commerce. According to the Bureau of Alcohol and Tobacco Tax and Trade, the FAA law “provides for the regulation of those engaged in the alcoholic beverage industry and the protection of consumers,” including ensuring the integrity of the industry.
Attorneys for plaintiff Ariel Grazerale of Florida are seeking a jury trial and certification of the proposed class.
Michelle Del Rey is a trending news reporter for USA TODAY. Please contact mdelrey@usatoday.com.
