Costco seeks dismissal of lawsuit over rotisserie chicken preservatives

Costco is asking a federal judge in California to dismiss a proposed class action that could reach far beyond a single label on the rotisserie case. The dispute turns on what shoppers were told about Costco’s Kirkland Signature Seasoned Rotisserie Chicken, and that matters on the warehouse floor because ingredient claims can quickly become member questions, signage changes, and extra scrutiny at the deli and service desk.

The lawsuit, filed Jan. 22, 2026, in the U.S. District Court for the Southern District of California, was brought by Bianca Johnston of Big Bear and Anastasia Chernov of Escondido through Almeida Law Group. The complaint says Costco falsely marketed the chicken as containing “no preservatives” even though the product includes sodium phosphate and carrageenan. The plaintiffs argue those additives function as preservatives because they inhibit spoilage, stabilize proteins and extend shelf life.

Costco has countered that it removed preservative statements from signs and online presentations to keep warehouse and online labeling consistent. The company says it uses carrageenan and sodium phosphate to support moisture retention, texture and product consistency during cooking. In other words, Costco is drawing a line between how the ingredients perform in the kitchen and how the product is described on the shelf.

That distinction matters to employees who handle the bird every day. Rotisserie chicken is one of Costco’s most visible prepared foods, and it is also one of the company’s most important traffic drivers. Costco sold 157 million rotisserie chickens in fiscal 2025, while keeping the price at $4.99, a number that has become part of the company’s brand identity. Any challenge to the label can spill into member interactions, especially when shoppers want to know whether a product is compliant with store standards or whether a sign has changed.

Costco’s own filings show why the issue is so sensitive. The company says profitability depends largely on net sales, comparable sales and membership-fee economics rather than big margins on individual items. That makes the rotisserie chicken less like a side dish and more like a signal of trust. If the case is dismissed, Costco avoids a longer discovery fight. If it survives, the company may have to document more about ingredient use, supplier specifications and how the product is described across channels.

Federal food-labeling rules also help explain why the case has teeth. The U.S. Department of Agriculture’s Food Safety and Inspection Service says carrageenan may be used as a binder in meat and poultry products, and the Food and Drug Administration lists sodium phosphate as a food ingredient category in federal regulations. The legal fight is not over whether the ingredients exist, but whether Costco’s “no preservatives” marketing overstated what was in the package.