Although no court ruling has yet been issued, indications of Salmonella contamination in the chicken products of this global retail giant are likely to affect consumer trust.

A whole ready-to-eat roasted chicken—commonly known as rotisserie chicken—has long been an iconic product at Costco, a retail giant from the United States. The company is known for offering a wide range of quality products at competitive prices, from food items to electronics. Through its paid membership-based business model, customers can shop in large quantities at wholesale prices. This strategy has also become the foundation of Costco’s reputation for low prices.

According to an article by Daniel Kline in TheStreet, Costco’s rotisserie chicken—marketed at US$4.99—has long been both a customer favorite and a key business instrument for the company. The product is positioned as a loss leader, meaning an item sold at a very low price, potentially even below production cost, to encourage store visits and trigger the purchase of other products with higher profit margins. This strategy has proven effective in maintaining customer traffic and strengthening member loyalty.

However, behind this attractive pricing lies a more serious issue. Allegations of Salmonella contamination have shifted the focus from “low price” to food safety concerns. A product once synonymous with economic value is now overshadowed by potential health risks.

In February 2026, Costco faced a serious lawsuit following allegations of Salmonella bacterial contamination in its chicken product line. The lawsuit was first filed in a federal court in Seattle on February 12, 2026. The allegations stem from findings that Costco’s chicken processing facility, Lincoln Premium Poultry, located in Fremont, Nebraska, repeatedly failed to meet Salmonella safety standards tested periodically by the United States Department of Agriculture (USDA).

Since beginning operations in 2019, the processing plant has reportedly received a Category 3 rating (the lowest category) from the USDA in 92% of reporting periods. “According to the most recent reports, between September 2023 and July 2025, the plant even received a Category 3 rating in 100% of the reports,” said Andrew deCoriolis, director of Farm Forward, indicating that contamination levels at Costco’s chicken plant have worsened.

This statement strengthens suspicions that contamination control has not been taken seriously enough. Public scrutiny intensified further when Consumer Reports identified Lincoln Premium Poultry as one of the poultry plants with the highest Salmonella detection rates in data compiled up to July 2025.

Basis of the Lawsuit

The issue entered the public spotlight after media reports examined USDA inspection data. According to court documents cited by Reuters, the plaintiff did not claim to have become ill after consuming the product. However, the plaintiff argued that there was economic harm because the retailer failed to disclose the risk of contamination.

The lawsuit was filed as a proposed class action, meaning the plaintiff seeks to represent a group of consumers who purchased the same product.