Costco’s ongoing legal battle over its rotisserie chicken has seen a new development. Lawyers representing the company have filed a motion to dismiss the proposed class-action lawsuit, which alleges that Costco deceived customers by promoting its rotisserie chicken as preservative-free.
The initial lawsuit was initiated in January by two California women in the U.S. District Court for the Southern District of California. It highlights that Costco’s Kirkland Signature seasoned rotisserie chicken contains sodium phosphate and carrageenan, which the plaintiffs claim are preservatives. They argue that the “No Preservatives” label on the packaging is misleading, unlawful, and unfair.
In response, Costco stated that it uses these ingredients to enhance moisture retention, texture, and product consistency during cooking. Following the lawsuit, Costco removed the “no preservatives” references to ensure consistency in labeling. The plaintiffs’ legal team viewed this move as a validation of their argument that the preservative claims were false.
However, Costco’s recent motion to dismiss asserts that the lawsuit’s core theory is flawed. The company argues that sodium phosphate and carrageenan do not act as preservatives in the chicken and are clearly listed in the seasoning ingredients on the label. They cite various sources, including FDA regulations, to counter the plaintiffs’ claims.
Costco’s legal representatives also dispute the plaintiffs’ assertion that they would have paid less for the chicken elsewhere if they had known about its ingredients. They point out that despite removing the contentious signage, the price of the rotisserie chicken remains at $4.99, indicating that there was no price premium associated with the preservative-free claim.
Costco’s rotisserie chickens are a popular item for the retail giant, priced at $4.99 in the U.S. since 2009. In Canada, the cost ranges from $7.99 to $9, still competitive compared to other grocery stores. In 2025, Costco sold a staggering 154.7 million rotisserie chickens globally.
Costco’s legal team is seeking to have the complaint dismissed with prejudice, preventing the plaintiffs from reattempting the case. A hearing on the motion to dismiss is scheduled for August 13.
