Costco responds to lawsuit claiming its rotisserie chickens are mislabelled
· Toronto Sun
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Costco is taking matters into its own wings, er, hands.
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The wholesale giant filed a motion to dismiss a lawsuit that accuses it of falsely advertising its popular rotisserie chicken as preservative-free.
Bianca Johnston and Anastasia Chernov alleged in a proposed class-action lawsuit filed on Jan. 22 in a California court, claiming the Kirkland Signature Seasoned Rotisserie Chicken is made with two added preservatives: sodium phosphate and carrageenan.
The lawsuit claimed that sodium phosphate and carrageenan help preserve texture and shelf stability, “i.e., performing a preservative function.”
The complaint continued: “Because sodium phosphate and carrageenan perform preservative functions in the Rotisserie Chicken, the Rotisserie Chicken in fact contains added preservatives.”
The plaintiffs went on to accuse Costco of engaging in “unfair business acts and practices by tricking” customers into paying a premium for the product by advertising it as “no preservatives.”
Costco’s rotisserie chickens are priced at $4.99 in the United States. In Canada, the chicken ranges in cost but stays under $10.
‘Fatally flawed’ lawsuit
The retailer scoffed at the “price premium” claim, noting the price of its rotisserie chickens remains the same, despite removing the “no preservatives” signage.
“The Amended Complaint does not identify a single ‘competitor’ who prices a whole rotisserie chicken for sale for less than $4.99,” the motion added.
In a June 4 memorandum in support of the motion to dismiss the lawsuit, Costco called the class-action “fatally flawed,” and argued that the sources the plaintiffs used to support their claims do not list the two ingredients as preservatives, so “reasonable consumers” cannot be described as deceived.
The memorandum, obtained by People , also said that the ingredients “function as seasonings.”
“We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities,” Costco said in a statement to the outlet in January.
The wholesale retailer also said it removed the “no preservatives” labelling from the prepared meal.
“To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/on-line presentations, we have removed statements concerning preservatives from the signs and on-line presentations,” the statement said at the time.
The plaintiffs demanded unspecified monetary damages and want a class certification created for affected shoppers who purchased the chicken.
Costco is asking for the complaint to be dismissed with prejudice, alleging that the “amendment is futile because Plaintiffs cannot change the facts to salvage their claims.”
A judge will hear the motion to dismiss on Aug. 13.