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Costco Wholesale Corp. will have to face a class action lawsuit that alleges its coconut oil labels are misleading to suggest that the product is “healthful and delicious,” when it is not actually healthier than other cooking oils.
In its recent motion to dismiss the class action lawsuit, Costco argued that the plaintiffs never showed that the coconut oil caused them any illnesses, nor did they suffer any health problems.
Additionally, argued Costco, coconut oil has other uses other than nutrition, like on the skin.
U.S. District Judge David O. Carter rejected Costco’s motion to dismiss. Judge Carter noted that at this point in the class action lawsuit, the plaintiffs have established standing and had properly alleged that they relied on the label’s claims and lost money because of it.
Contrary to Costco’s argument, notes the judge in his order, the plaintiffs only claim that they suffered economic damages by purchasing the coconut oil and not that they suffered any health related issue.
The judge also pointed out that the plaintiffs claimed that they relied on Costco coconut oil labels that advertised the supposed health benefits of the product and found that the plaintiffs’ complaint therefore passed the “reasonable consumer test.”
“Plaintiffs allege it was misleading to convey the impression coconut oil is healthier than butter and other cooking oils,” wrote the judge in his order dismissing Costco’s motion. “That is all required at this stage. Drawing all inferences in plaintiffs’ favor, the court finds their allegations to be sufficient.”
Lead plaintiffs James Boswell and Michelle Salazar-Navarro, say in their class action lawsuit that they were tricked into buying Costco brand coconut oil because of claims made on the packaging. However, coconut oil is made mostly of saturated fat, allege the plaintiffs.
The class action alleges that Costco coconut oil is labeled as having “health benefits,” and also says the coconut tree is “the tree of life” and “tree of heaven.” Additionally, the plaintiffs claim that the labeling encourages consumers to use the coconut oil as a substitute for butter.
The plaintiffs claim that they spent extra money because they “believed Kirkland Coconut Oil was healthy, healthier than butter and other oils, and would not raise or otherwise detriment their blood cholesterol or cause increased risk of CHD, stroke, or other morbidity,” according to the complaint.
Judge Carter also upheld the plaintiffs’ contention that a class action lawsuit is an appropriate way to resolve the allegations. “[T]here is a likelihood of repeat injury for the class as a whole since some class members do not have the same knowledge’ as plaintiffs,” says the judge in his order.
The class action lawsuit claims that Costco violated the California Unfair Competition Law, the False Advertising Law, the Consumer Legal Remedies Act, and breach of express and implied warranties.
The plaintiffs are represented by Melanie Rae Persinger of the Law Office of Jack Fitzgerald, John Joseph Fitzgerald, IV and Trevor M. Flynn of The Law Office of Jack Fitzgerald PC, and Paul K. Joseph of the Law Office of Paul K. Joseph, PC.
The Costco Coconut Oil Mislabeling Class Action Lawsuit is James Boswell, et al. v. Costco Wholesale Corp., Case No. 8:16-cv-00278, in the U.S. District Court for the Central District of California.
UPDATE: On May 1, 2017, Costco proposed to pay a $775,000 settlement to resolve claims in a class action lawsuit alleging the grocery wholesaler misled customers by advertising its Kirkland coconut oil as healthy.
UPDATE 2: September 2017, the Costco coconut oil class action settlement is now open. Click here to file a claim.
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51 thoughts onCostco Can’t Escape ‘Healthy’ Coconut Oil Class Action Lawsuit
Shame on James Boswell for this law suit! So if people don’t claim “their share” does Boswell get to keep the whole thing?
Really? That’s what the class action lawsuit I received in the mall is about? I got something asking to join a class action lawsuit against Costco for their Kirkland coconut oil. I thought maybe Kirkland passed off processed coconut oil instead of the virgin pressed so I joined the suit. Now I want to tell them to donate my probable fifty cent check to a legal defense fund against frivolous lawsuits.
aha attack on coconut oil occurs simultaneously as this total b.s. who is behind these planned, strategic, deliberate, calculated moves? the same self-serving, greedy, egocentric, mentall ill, morally corrupt, wealthy baboons who profit when you’re addicted and sick, i.e: american soybean association (monsanto), pharmaceutical mafia, and all the other rich turds benefiting from their massive lobbying power and political connections. business as usual. arm yourself. knowledge is power. ignorance is exploited.
It is sad we must deal with outright lairs and deceivers who are the uneducated trying to fool the awake public.
People learn about the invisible government supper imposed as our government when it is a fraud like this fraudulent law suit and Judge.
This is wonderful Coconut oil Costco has made available.
Learn about the different of We the People of these United States vs citizen you don’t want to be a citizen elsewise you are subject too Corporate America, you a people which means each of us is sovereign unto your ourselves.
Over the last hundred years our constitution has been eroding until this generation has no clue who we really are.
We really need to learn more the different between Washington DC which is a corporate and these United States which was not a corporate in the beginning of this country history and now seem to be subject to DC.
If they can lie about and demonized Saturated fats think about what else these deceivers have been doing….
Knowledge is power…
Sadly this ship has sailed long ago but you should know this is not the real America and how the wool was pulled over our eyes.
OMGosh! To waste my time on something I thought was WRONG that Costco did. The only thing WRONG are uneducated people and the lawyers who want to make money from these stupid claims! I wish we had quadruple the lawsuits on all that MONSANTO and Big fortune 500 companies who lie on labels and hide all the toxic chemicals they put into their food and our legal system says it’s ok to do so. It’s just fine to slowly kill our parents, kids, grandkids, and by the time great grandkids come around they’ll be eating plastic and who knows what and won’t even know it. Keep building more hospitals and prisons. You’re going to need it. Good luck next gen!!!
This a stupid waste of everyone’s time, Read your labels and do YOUR OWN RESEARCH knuckleheads. This is what our country has come too, REALLY?????
I use it on my skin and lips. Works better than my Mary Kay moostuizer! ? I don’t feel like they mis advertised.
Moisturizer*