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Costco is facing a major legal challenge that has shoppers and industry insiders watching closely. The case involves one of the warehouse retailer's most popular products and raises questions about labeling accuracy, product transparency and the integrity of private-label brands. Consumers are now asking whether one of their favorite Kirkland Signature products truly lives up to its advertised claims.
The lawsuit alleges that Costco falsely marketed its Kirkland Signature tequilas as "100 percent agave." Plaintiffs claim that laboratory testing revealed the tequila contains cheaper, non-agave alcohols, such as those derived from cane sugar. According to the complaint, this alleged misrepresentation affects the entire Kirkland tequila line and violates federal and state consumer protection laws. Costco's tequila supplier, Santa Lucia Corporate Distillery of Mexico, is also named in the lawsuit. Plaintiffs allege that both companies knowingly participated in a scheme to profit from tequila that was falsely certified as pure agave.
The complaint further claims that Costco had exclusive knowledge of the adulteration, yet continued to sell the tequila at a premium price. Marketing materials are described as...
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