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Costco recalls mislabeled beignets over serious allergy risk concerns

Costco has issued a recall notice for mislabeled bakery items that could cause allergic reactions in customers.

Costco announced that one of its products, “Mini Beignets filled with Caramel,” was “combined with Mini Beignets filled with Chocolate Hazelnut.” The company said the mislabeled units contained “undisclosed Tree Nuts.”

“If you are allergic to Hazelnuts/Filberts, do not use this product. Please return it to Costco for a full refund,” the company said in a statement.

Costco says the warning applies to purchases made in Jan. 16-30 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.

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Costco is the first company known to have gone from $0 to $3 billion in sales in less than six years. (Photos by Joe Raedle/Getty Images)

The recall comes days after Costco was hit with class action lawsuit accuses the company of falsely advertising that its Kirkland Signature Seasoned Rotisserie Chicken is preservative-free, according to court documents.

The lawsuit, filed last week in the US District Court for the Southern District of California, alleges that Costco’s store signs and website “create the overall impression that Rotisserie Chicken does not contain any additional preservatives.” But the suit also claims those representations are false, arguing that “Rotisserie chicken is made with two additional preservatives – sodium phosphate and carrageenan.”

“The presence of sodium phosphate and carrageenan, added preservatives that work like Rotisserie Chicken, contradicts Costco’s ‘No Preservatives’ motto. presentations and advertising to create,” the lawsuit, filed on behalf of Anatasia Chernov and Bianca Johnston, said.

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A customer choosing a rotisserie chicken, at Costco, Florida. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images/Getty Images)

The plaintiffs argued that consumers, including themselves, make purchasing decisions based on whether a food product is “preservative” and that they could not determine before purchasing chicken if it contained added preservatives.

The lawsuit contends that any mention of the ingredients, if they were disclosed at all, appeared in small print on the back of the label and did not explain their preservative function. The lawsuit said this disclosure was insufficient to counter the “preservative-free” claims made widely by Costco.

A customer picks up a rotisserie chicken

A customer picks up a rotisserie chicken inside a Costco store in Napa, California, US, Monday, Sept. 22, 2025. Costco Wholesale Corp. is scheduled to release earnings figures on Sept. 25. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

It also alleges that the company has a high level of knowledge about how the ingredients work and has failed to share that information and consumers.

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“Consumers reasonably rely on clear, prominent claims like ‘No Preservatives,’ especially when deciding what to eat for themselves and their families,” Wesley Griffith, California managing partner at Almeida Law Group LLC representing the group suing Costco, told FOX Business.

Fox News’ Daniella Genovese contributed to this report.

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