Costco Is Being Sued Over One of Its Most Popular Copycat Products

As if reports of potential Salmonella in its rotisserie chicken weren’t enough, Costco is in the hot seat yet again—this time facing a major class action lawsuit. Customers claim the retailer has been making false statements about one of its most popular Kirkland Signature products.

And if you were planning to make your holiday parties a little merrier with a margarita, then you’re going to want to hear this.

Costco Faces a Class Action Lawsuit Over Its Kirkland Signature Tequilas

The Costco products at the center of the controversy are from the Kirkland Signature Tequila line. The popular spirit collection has been praised as a budget-friendly dupe for premium brands like Espolòn Blanco and Casamigos.

The varieties in question include Blanco, Reposado, Añejo, Añejo Cristalino, and Extra Añejo, and are all sold in bottles ranging from 1 to 1.75 liters at 40 percent ABV. And according to the Kirkland product labels, each bottle of tequila is made from 100 percent Blue Weber agave, making them premium tequila.

Tequila manufacturers are required to use at least 51 percent blue agave to meet legal standards. However, Costco states its products are made from 100 percent agave, though some customers remain skeptical.

Despite the line’s popularity, recent reviewers have raised concerns about the flavor. Some describe it as “sharp, citrusy, and a bit sour-tasting [that] tastes and smells more like cheap tequila.” Reviewer Costcuisine continues to clarify that it’s “not for shots or drinking straight.” Still, many shoppers were willing to overlook the taste for what seemed like a great deal—a high-quality tequila at a low Costco price.

But those complaints have now escalated into a proposed class action lawsuit, filed in the Southern District of Florida on Oct. 31. The suit claims that Nuclear Magnetic Resonance (NMR) testing revealed Costco’s Kirkland Signature Añejo Cristalino contained so much alcohol derived from non-agave sources, such as sugarcane or corn, that it can’t legally qualify as tequila.

According to the complaint, the testing showed that the tequila contained “material amounts of ethanol not derived from agave plants, and, as such, they were adulterated with ethanol other than that obtained from Blue Weber agave.”

The lawsuit further claims that these findings likely apply to the entirety of Costco’s tequila lineup, “as they are created from the same base spirit.”

The suit alleges negligence, negligent misrepresentation, unjust enrichment, and violations of Florida’s Deceptive and Unfair Trade Practices Act. The plaintiffs are seeking a jury trial, injunctive and declaratory relief, and compensatory damages for all class members. They argue that had they known the tequila’s true makeup, they wouldn’t have paid a premium price for what they now believe is a low-quality product.

Currently, Costco’s tequilas are listed as unavailable on the company’s website, depending on your state. It’s unclear whether production has been stopped entirely or paused amid the ongoing litigation.

Either way, if you’ve purchased one of these Kirkland Signature tequilas while grocery shopping before, this is definitely a story worth keeping an eye on.