Costco rotisserie chicken lawsuit: what opportunities for Quebec SMEs?

Since January 2026, Costco’s famous $4.99 rotisserie chicken has been at the heart of a class action lawsuit in the United States. Two California consumers are accusing the chain of misleading the public by presenting its Kirkland Signature Seasoned Rotisserie Chicken as “preservative-free”, when in fact the product contains sodium phosphate and carrageenan, two additives that act as preservatives. ([spokesman.com](https://www.spokesman.com/stories/2026/jan/28/costco-sued-over-its-499-rotisserie-chicken-heres-/?utm_source=openai))

Beyond the American legal case, this affair echoes deep-seated trends: rising demand for “clean label” products, mistrust of the big banners, and the quest for transparency in the food chain. All these factors open up concrete opportunities for Quebec SMEs, particularly in the agri-food, foodservice, neighbourhood grocery and online sectors.

In this article, we explain what this Costco case reveals, how consumer expectations are changing, and how Quebec SMEs can position themselves intelligently through digital,AI and chatbots, CRM and e-commerce.

1. What the Costco rotisserie chicken lawsuit reveals about new consumer expectations

The class action lawsuit filed on January 22, 2026 in California against Costco accuses the retailer of “systematically misleading” millions of consumers by displaying “No preservatives” on in-store and online signage, even though the chicken contained sodium phosphate and carrageenan. ([spokesman.com](https://www.spokesman.com/stories/2026/jan/28/costco-sued-over-its-499-rotisserie-chicken-heres-/?utm_source=openai))

A few key figures:

• Costco sells more than 157 million rotisserie chickens a year, according to the complaint. ([yahoo.com](https://www.yahoo.com/news/articles/costco-faces-lawsuit-over-claims-102500554.html?utm_source=openai))
• The plaintiffs estimate that consumers have been cheated to the tune of “tens, if not hundreds, of millions of dollars”. ([prnewswire.com](https://www.prnewswire.com/news-releases/consumers-represented-by-the-almeida-law-group-file-class-action-alleging-costco-deceived-shoppers-with-false-no-preservatives-claims-on-kirkland-rotisserie-chicken-302668616.html?utm_source=openai))
• Since opening its Fremont plant in 2019, USDA monitoring data shows that the facility scored worst (Category 3) on salmonella tests 92% of the time, and even 100% of the time between September 2023 and July 2025, according to an analysis relayed by TheStreet. ([thestreet.com](https://www.thestreet.com/restaurants/costco-4-99-chicken-under-fire-for-safety-and-ingredients/?utm_source=openai))

The American authorities are not ruling on the merits of the appeal, but this case illustrates two strong trends:

• The power of marketing claims (“no preservatives”, “natural”, “hormone-free”, etc.) in purchasing decisions.
• Growing sensitivity to issues of safety, ethics and transparency (additives, contamination, animal welfare, origin). ([findlaw.com](https://www.findlaw.com/legalblogs/law-and-life/lawsuit-over-costcos-preservative-free-rotisserie-chicken-ruffles-feathers/?utm_source=openai))

In Quebec as elsewhere, recent survey data on Canadian consumers show a steady rise in demand for local, traceable products with short ingredient lists. Food scandals and high-profile lawsuits, even abroad, act as psychological triggers: they reinforce the idea that we should have more confidence in local producers and businesses that play the transparency card.

For an SME in Quebec, this means that the debate surrounding Costco’s roast chicken isn’t just about an American giant: it’s redefining the standards your own customers apply to your brand, your website, your labels and your customer service.

2. Strategic opportunities for Quebec SMEs: positioning themselves as the transparent, local alternative

Faced with a global player like Costco, a local SME has neither the volume nor the bargaining power. But it does have two major assets that consumers are increasingly looking for: proximity and credibility.

Here’s how to turn the Costco affair into strategic leverage:

Put transparency at the heart of your value proposition

• Clear labelling: explain in simple terms each ingredient, its role and origin (e.g. “sodium phosphate: stabilizes texture, used in small quantities”).
• Ingredient charter on your website or online store detailing what you use and what you exclude.
• FAQ traceability explaining the origin of meats, dairy products, spices, etc.

Studies on consumer behavior show that information deemed honest and accessible increases trust and loyalty, even if the product isn’t “perfect”. For example, a Deloitte survey on “conscious consumers” indicates that a significant segment is willing to pay more for brands that are transparent about their practices and ingredients. ([findlaw.com](https://www.findlaw.com/legalblogs/law-and-life/lawsuit-over-costcos-preservative-free-rotisserie-chicken-ruffles-feathers/?utm_source=openai))

Capitalize on local and Quebec roots

Consumer statistics in Canada show a marked interest in buying local, particularly since the pandemic, when consumers discovered the fragility of global supply chains. Gaspésie, Estrie, Mauricie, Montérégie: everywhere, artisans, butchers, caterers and restaurateurs are banking on “made here”.

For an SME, this means :

• Promote theQuebec origin of products on the website, social networks and labels.
• Tell the story of the company, the team, the partner producers.
• Create educational content on the differences between your product and industrial offerings (e.g. shorter shelf life, but fewer additives).

Differentiate on quality rather than price

Costco’s $4.99 roast chicken is typically a loss leader, sold at very low margins to generate in-store traffic. ([reviewjournal.com](https://www.reviewjournal.com/news/nation-and-world/costcos-4-99-rotisserie-chicken-gets-roasted-in-lawsuit-heres-what-theyre-claiming-3614396/?utm_source=openai)) SMEs can’t win this ultra-low price battle, but they can win on three other fronts:

• Taste quality: homemade recipes, original marinades, slow cooking, freshness.
• Values: local ingredients, more responsible farming conditions, fair dealings with suppliers.
• Customer experience: personalized service, advice, recipes, pairings, newsletters.

The important thing is to make these advantages visible and measurable in your digital communication, rather than letting price be the only comparative criterion.

3. From scandal to trust: how digital and AI can help Quebec SMEs

Not all Quebec consumers read American court decisions, but they do see the headlines: “Costco sued over $4.99 rotisserie chicken”, “No preservatives?” etc. ([spokesman.com](https://www.spokesman.com/stories/2026/jan/28/costco-sued-over-its-499-rotisserie-chicken-heres-/?utm_source=openai)) In the face of all this media noise, your advantage will be to answer the questions before they’re even asked.

1) A clear, credible and up-to-date website

A professional website has become the primary source of information for verifying a company’s credibility. For an SME in the food or restaurant sector, it must present :

• Detailed product sheets (ingredients, allergens, nutritional values).
• Explanations of processes (cooking, preservation, packaging).
• Reassuring content on food safety and quality control.

If your site is old, slow or confusing, it becomes difficult to convince a customer to trust you more than a big banner. Working with a specialized agency like Nuaweb to create or redesign your website helps structure information, optimize SEO and highlight your transparency.

2) AI and chatbots to answer ingredient questions 24/7

The lawsuits against Costco revolve around a simple question: “Are there really preservatives in this chicken? The same questions apply to your products: additives, allergens, farming methods, origin.

By integrating an intelligent AI-based chatbot into your website or online store, you can :

• Answer questions on ingredients and allergens in real time.
• Direct customers to your quality policies and certifications.
• Gather recurring questions to improve your labels and FAQs.

Nuaweb’s AI and chatbot solutions are designed for SMEs: they integrate with your existing site and learn from your product sheets, compliance documents and marketing content.

3) CRM: tracking long-term relationships of trust

Building trust isn’t just about answering a one-off question, it’s about nurturing a relationship. A well-configured CRM (Customer Relationship Management) tool enables you to :

• Segment your customers who are sensitive to “clean label” or health issues.
• Send targeted newsletters about your quality commitments and new products.
• Track comments, complaints and feedback to improve your products.

For example, you could create an automated sequence for all new subscribers to your newsletter: welcome, presentation of the company’s values, highlighting your commitments (limited additives, local producers, quality control), then proposing exclusive offers.

4. E-commerce, content and reputation: turning the Costco crisis into a growth lever

For Quebec SMEs, the “Costco rotisserie chicken lawsuit” isn’t just legal news: it’s a clear signal that the market places a premium on brands perceived as honest and consistent. Digital is your best ally in demonstrating this.

1) An online store that emphasizes transparency

With a well-designed online store, you can :

• Clearly display ingredient lists and nutritional values.
• Offer filters by need (gluten-free, no added nitrites, local, etc.).
• Add “Our commitment” or “Our suppliers” sections linked to each product.

In the post-Costco context, an e-commerce site that takes the trouble to detail and explain its products immediately stands out from anonymous or information-poor solutions.

2) Educational content: blog, video and social networks

The roast chicken case was widely reported in the mainstream media (USA Today, Los Angeles Times, etc.), showing that labeling issues really do interest the general public. ([spokesman.com](https://www.spokesman.com/stories/2026/jan/28/costco-sued-over-its-499-rotisserie-chicken-heres-/?utm_source=openai)) For an SME, this is an opportunity to produce content that informs rather than simply sells:

• Blog posts explaining the difference between “no preservatives added” and “no preservatives”.
• Behind-the-scenes videos showing the preparation of dishes, quality controls and visits to producers.
• Infographics on the main additives, their uses and the quantities actually used.

An agency like Nuaweb can support you in video production, content strategy and SEO so that these efforts bring you qualified traffic and additional sales.

3) E-reputation management: don’t wait for a crisis

Costco is responding today by removing “no preservatives” from its in-store and online signage. ([spokesman.com](https://www.spokesman.com/stories/2026/jan/28/costco-sued-over-its-499-rotisserie-chicken-heres-/?utm_source=openai)) An SME doesn’t have the same legal resources or the same tolerance for media risk. It is therefore essential to :

• Review your marketing claims and labels with a critical eye.
• Document your quality control procedures and ingredient sources.
• Monitor online reviews (Google, Facebook, delivery platforms) and respond quickly and professionally.

A good CRM and integrated digital strategy enable you to centralize feedback, track complaints and identify weak signals before they become a crisis.

Conclusion: turning Costco’s business into a competitive advantage through digital technology

The Costco rotisserie chicken lawsuit is a perfect illustration of how the market is changing: consumers, in Quebec as elsewhere, are no longer satisfied with a low price and a popular product. They want to understand what they’re eating, how it’s produced and whether marketing messages are consistent with reality.

For Quebec SMEs, this is a unique opportunity to :

• Position ourselves as transparent, local and responsible players.
• Set up appropriate digital tools: clear website, information-rich online store, AI chatbot, CRM.
• Build lasting trust based on honesty rather than vague promises.

If you want to take advantage of this context to strengthen your digital presence, clarify your message and highlight your commitments, the Nuaweb team can support you: strategy, website creation, e-commerce, integration ofAI and chatbots, implementation of CRM adapted to the realities of Quebec SMEs.

Ready to turn consumer distrust into competitive advantage? Schedule a free consultation with Nuaweb today and together we’ll build a digital strategy aligned with your values and new market expectations.