Here's What Costco Really Thinks About Those Rotisserie Chicken Allegations

On a surface level, it seems like everyone loves Costco's Kirkland Signature Seasoned Rotisserie Chicken, which combines convenience, affordability, and deliciousness into one $4.99 package. However, some shoppers have a major bone to pick with this iconic product (and we're not talking about wishbones). An ongoing class action lawsuit alleges that Costco falsely labeled its rotisserie chickens as preservative-free, and the controversy has grown so large that the company has spoken out against the allegations.

The lawsuit hit Costco on January 22, 2026, when it was filed by two shoppers from California. The plaintiffs pointed out that the chain's rotisserie chicken contains sodium phosphate and carrageenan, two food additives commonly used to preserve quality and prevent spoilage in processed foods. Thus, the plaintiffs argue Costco misled its customers into spending money on a falsely advertised product. As of June 10, Costco has announced plans to seek dismissal of the case, denying it violated consumer protection, false advertising, and unfair competition laws.

Costco's attorney, Charles Sipos, called the lawsuit's logic "fatally flawed" per The Seattle Times, as the U.S. Food and Drug Administration does not designate sodium phosphate and carrageenan as preservatives. This could mean Costco is not legally required to state that its rotisserie chicken contains preservatives. The company also pointed out that these two ingredients are clearly stated on the packaging, not hidden to mislead customers. Therefore, the plaintiffs' claim that preservatives are hiding in Costco's rotisserie chicken is not so cut and dried. 

The Costco chicken lawsuit complains about more than just labeling. The suit also alleges that the company took advantage of consumer demand for preservative-free products so that it could charge a higher price for its rotisserie chicken. In turn, the suit alleges that Costco's deliberate mislabeling tricked customers into spending more money than they would have if they knew the premium-priced chicken was actually not preservative-free.

Costco fans may notice a flaw here: The Kirkland Signature Seasoned Rotisserie Chicken is known for being much cheaper, not more expensive, than those from other stores. Costco pointed this out in its rebuttal, with Charles Sipos stating that the suit "does not identify a single 'competitor' who prices a whole rotisserie chicken for sale for less than $4.99" (via The Seattle Times). Some Costco customers actually fear that, in the future, the store may charge more in order to make up for the associated legal fees — potentially the worst part of the Costco rotisserie chicken lawsuit.

While the chain's latest statement strongly rejects the suit, Costco previously removed statements about preservatives in its rotisserie chickens from in-store signs and web pages. However, this is far from an admission of guilt, and it remains to be seen how this big Costco controversy will play out in court. If Costco loses, it may have to fulfill the two plaintiffs' request to pay monetary damages to customers who purchased the chickens.