New Costco Lawsuit Is Coming For The Store's $5 Rotisserie Chicken

Costco's in trouble, and it's all due to the store's famous $4.99 rotisserie chickens. No, it's not because Costco loses millions of dollars each year by keeping these chickens' cost low — that's all part of a calculated strategy. The megaretailer is facing a class-action lawsuit because of claims that the chicken is preservative-free.

The lawsuit takes issue with in-store signage and information on Costco's website, which claims that the chicken has "no preservatives." Plaintiffs noted that the chicken contained both sodium phosphate and carrageenan, two additives used as preservatives. According to the lawsuit, the plaintiffs wouldn't have paid full price or bought the chicken at all if they'd known about the additives.

"Consumers reasonably rely on clear, prominent claims like 'No Preservatives,' especially when deciding what they and their families will eat," said Wesley M. Griffith, the plaintiffs' attorney, in a statement. "Costco's own ingredient list contradicts its marketing. That's unlawful, and it's unfair."

The Food and Drug Administration classifies both carrageenan and sodium phosphate as GRAS, or generally recognized as safe. The Environmental Working Group calls sodium phosphate an ingredient of "moderate" concern, while carrageenan gets a pass from the watchdog.

According to Healthline, people with kidney disease, heart failure, or certain intestinal problems should avoid sodium phosphate. Some people have allergies to the additive, too. Large doses of sodium phosphate — which are sometimes used for medical treatment — come with a long list of side effects and warnings. However, the amounts found in processed food are low. Healthline also notes that there's some evidence to suggest that carrageenan triggers inflammation. There's ongoing research into its impact on gastrointestinal diseases, like Crohn's disease, and allergies are possible, too.

Costco's rotisserie chicken has already received flak for its "chemical" taste, which is likely the fault of phosphates. The chicken is also super-high in sodium, an issue for salt-conscious customers. Still, there's no denying that it's a great deal, and many folks are perfectly willing to put up with additives in exchange for cheap chicken. As of this writing, Costco has not issued a statement in regard to the lawsuit's allegations.