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Costco issued a recall notice for mislabeled bakery items that could cause allergic reactions in customers.
Costco announced that one of its products, “Caramel Filled Mini Beignets,” was “inadvertently packaged with Chocolate Hazelnut Filled Mini Beignets.” The company said the mislabeled units contain “undeclared nuts.”
“If you are allergic to hazelnuts/walnuts, do not consume this product. Please return it to Costco for a full refund,” the company said in a statement.
Costco says the warning applies to purchases from January 16 to 30 in the following states: Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Louisiana, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia and Washington.
Costco is the first known company to go from $0 to $3 billion in sales in less than six years. (Joe Raedle/Getty Images/Getty Images)
The recall comes days after Costco was hit with one collective demand accusing the company of falsely advertising that its Kirkland Signature Seasoned Roast Chicken is preservative-free, according to court documents.
The lawsuit, filed last week in the U.S. District Court for the Southern District of California, alleges that Costco’s store signage and website “create a general impression that the rotisserie chicken contains no added preservatives.” But the lawsuit also claims those representations are false, arguing that “roast chicken is made with two added preservatives: sodium phosphate and carrageenan.”
“The presence of sodium phosphate and carrageenan, added preservatives that function as such in roast chicken, contradicts the general impression that Costco’s ‘Preservative Free.’ representations and advertising create,” claims the lawsuit, filed on behalf of Anatasia Chernov and Bianca Johnston.
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Customer selecting roast chicken, Costco, Florida. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images) (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)/Getty Images)
The plaintiffs argued that customers, including themselves, make purchasing decisions based on whether a food product is “preservative free” and that they were unable to determine prior to purchasing the chicken whether it contains added preservatives.
The suit argues that any mention of the ingredients, if disclosed, appeared only in small print on the back of the label and did not explain their preservative function. The suit claimed that these disclosures were inadequate to counter Costco’s prominently displayed “preservative-free” claims.
A shopper picks up a rotisserie chicken inside a Costco store in Napa, California, U.S., Monday, Sept. 22, 2025. Costco Wholesale Corp. is scheduled to release earnings figures on September 25. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
It also alleges that the company had superior knowledge of how the ingredients worked and failed to share it information with consumers.
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“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what they and their families will eat,” Wesley Griffith, California managing partner of Almeida Law Group LLC, which represents the party suing Costco, told FOX Business.
Fox News’ Daniella Genovese contributed to this report.
