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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
That is so ridiculous. I use this and love it. Are people trying to put Costco out of business? Why such a stupid lawsuit?
I’ve purchased multiple jars of this product over the years from COSTCO
This lawsuit is ridiculous, stupid people. I love this coconut oil, use it in my coffee, smoothies, cooking and making popcorn. People sue just to make a buck…grow up and do your own research before you buy. Duh.
If you are not seeing healthy results from consuming quality cold pressed coconut oil, it’s because you are probably eating something else that is truly unhealthy. Quit blaming fats or coconut oil
I have consumed COPIOUS amounts of this oil over the last several years. I’m talking in my coffee , in my smoothies, straight out of the jar with a spoon 2-3times a day. Guess what? I had my blood work done and my doc told me ” whatever you are doing, keep doing it. Your good cholesterol is the highest I’ve ever seen.” I will continue to use this brand of coconut oil, as well as other quality brands….
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.
I bought a container of Costco coconut oil and it tastes rancid and it doesn’t smell right. If it were truly genuine organic, virgin coconut oil, it wouldn’t go rancid, due to its natural anti-bacterial properties.
Is there anything I can or should do about this?
I miss the Kirkland vanilla bean ice cream !!
thanks a lot all you cocoNUTS filing stupid class action lawsuits!!
READ THE RETURN POLICY
as far as stupid lawsuits go , I am one to talk it’s a regret that weighs heavily on my mind . all I can do is try to stop the lawsuit madness
I purchased a jar of Kirkland Cocknut oil. It tastes rancid and it smells bad, as well.
Is there anything I can do?
Genuine coconut oil should not go bad, as it has its own anti-bacterial properties. The only way it could go bad is if it’s not truly genuine.
I have this now.
I’ve purchased multiple jars of this product! How do I file a claim?