Costco Is Being Sued Over Its Rotisserie Chicken: Here’s Why

I just read some numbers about Costco's rotisserie chicken that I found to be pretty mind-blowing.

I knew their chicken was wildly popular, but I had no idea that Costco sells well over 100 million rotisserie chickens every year, including about 137 million birds in 2023 alone. That means Costco moves more chickens annually than the entire population of Japan, and nearly one for every man, woman, and child in the United States every three years.

With that kind of reach, even a small controversy over ingredients touches an enormous slice of America’s dinner plates, and that explains why a $4.99 chicken has suddenly become a national headline.

So, What's The Secret To Costco's Rotisserie Chicken That Has Prompted A Lawsuit?

Costco’s iconic $4.99 Kirkland Signature rotisserie chicken has become a kind of culinary legend because it's juicy, cheap, and a great reason to make a Costco run. But now that staple is at the center of a proposed class‑action lawsuit that claims the warehouse giant misled customers about what’s actually in the bird.

Filed in federal court in Southern California on January 22nd, the lawsuit contends that Costco’s marketing for the chicken (both in stores and online) prominently touted it as having "no preservatives,” even though the product does contain additives (sodium phosphate and carrageenan) that may function like preservatives.

According to the complaint, shoppers rely on claims like “no preservatives” when deciding what foods to buy, especially if they’re trying to avoid additives. The plaintiffs, Bianca Johnston and Anatasia Chernov, say they wouldn’t have bought the chicken or would have paid less for it had they known about the additives, which appear in small print on the label rather than in the bold marketing Costco used.

We're Talking About A Product That Brings In Tens Of Millions Of Dollars Each Year

The suit even argues that, by making the “no preservatives” claim, Costco “systemically cheated customers out of tens, if not hundreds, of millions of dollars.” That’s because the chicken’s marketing may have influenced purchase decisions and pricing comparisons with other rotisserie chicken products.

On their end of things, Costco has already removed the “no preservatives” wording from online descriptions and warehouse signage. The company has said it uses sodium phosphate and carrageenan to support moisture retention, texture, and consistency during cooking, and they've pointed out that both ingredients are approved for use by food safety authorities.

The regulatory language is another problem. While both ingredients are added to the chicken, they aren’t universally classified by the FDA as traditional preservatives. Sodium phosphate helps retain moisture and improve texture, and carrageenan, which is derived from seaweed, acts as a stabilizer rather than a direct preservative, according to food industry experts. All of that doesn’t still doesn't necessarily shield Costco from claims that its marketing was misleading.

What Will This News Do To The Overall Status Of Costco's Rotisserie Chicken?

I asked around our building and didn't find anyone who said that they were going to stop grabbing it up every time they're at Costco. I've got to think that for most shoppers this preservative flap probably won’t change much.

The Costco rotisserie chicken isn’t just a meal, it’s a ritual, a bargain, and a culinary icon. Taste, convenience, and the $4.99 price tag will likely outweigh any concerns about sodium phosphate or carrageenan for the overwhelming majority of fans. That said, the lawsuit could make more ingredient-conscious shoppers pause and read labels more carefully, and it may spur closer scrutiny of “preservative-free” claims from other food products that people really love.

But if you’ve ever smelled that golden, juicy bird on the rotisserie and felt your stomach rumble, chances are you’ll keep reaching for it.