The famous $4.99 Costco chickens, of which the company reportedly sells 150 million a year, are facing a lawsuit over a seaweed derivative.
In the suit, Costco’s customers are claiming that the food-warehouse behemoth has been falsely advertising its rotisserie poultry.
The lawsuit, filed in U.S. District Court, alleges Costco markets its Kirkland Signature rotisserie chicken as having “no preservatives,” even though the ingredient list suggests otherwise.
The plaintiffs say the label is misleading because the chicken contains, among other ingredients, carrageenan, a preservative commonly used to help food retain moisture and extend shelf life.
Costco officials told The Maine Wire they are revising their advertising campaign, perhaps an effort to resolve the lawsuit.
But they didn’t respond to a second question – are they sourcing their carrageenan from Rockland, Maine?
After all, arguably the oldest and most established U.S. supplier of carrageenan, which is made from seaweed, is in, yup, Rockland, Maine.
Rockland has been the home of a seaweed-processing plant since Algin Corp. opened it 90 years ago, in 1936.
Carrageenan, a common food additive, is extracted from seaweed and used as a thickening agent and stabilizer in such items as whipped cream, yogurt, ice cream, toothpaste, gelatin products – and, allegedly, in Costco’s hot birds.
Costco rotisserie fanatics argue that they would not have bought the chicken, or would have paid less, had they known that the company was “systemically cheating customers out of tens – if not hundreds – of millions of dollars” through alleged false advertising.
The lawsuit claims violations of several consumer protection laws and seeks restitution, damages, and changes to Costco’s labeling and marketing.
“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,” the plaintiffs’ attorney Wesley Griffith said in a statement. “Costco’s own ingredient list contradicts its marketing. That’s unlawful, and it’s unfair.”
The lawsuit also claims the chickens contain sodium phosphate, which typically helps meat retain moisture so it doesn’t dry out.
Carrageenan helps bind water and improve the birds’ texture.
Both ingredients are approved for use in food and are generally recognized as safe by the FDA.
The lawsuit argues that any mention of the ingredients, if disclosed at all, appear only in small print on the back of the label and fails to explain their preservative function.
The suit claims these disclosures are inadequate to counter the “no preservatives” ads prominently used by Costco.
Costco issued a statement to The Maine Wire in response to the lawsuit, saying that “to maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/on-line presentations, we have removed statements concerning preservatives from the signs and on-line presentations.”
The company said it uses carrageenan and sodium phosphate “to support moisture retention, texture, and product consistency during cooking.”
International Flavors and Fragrances officials confirmed to The Maine Wire they are still manufacturing carrageenan in Rockland.
But they offered no immediate word on whether they’re Costco’s carrageenan supplier.
