Lawsuit Accuses Costco Of Falsely Advertising Kirkland Tequila

Tequila is exploding in popularity thanks to flashy advertising campaigns and celebrity endorsements. That said, enthusiasts of this Mexican liquor might note that it's the unique flavor of agave that keeps people coming back. The best tequilas are often labeled as 100% agave. However, if a brand is going to make that claim, it has to actually be true.

Costco is now facing a lawsuit over this, alleging that its Kirkland Signature tequila is not actually 100% agave, contrary to the claims on its packaging. Plaintiff Ariel Glazer alleged in a Florida court that Kirkland tequila includes ethanol from non-agave sources, in violation of a state law against deceptive and unfair trade practices. The lawsuit seeks to have the plaintiff represent a nationwide class of aggrieved Costco customers who bought Kirkland tequila. Though it was just announced, so far there's no sign of a settlement: the plaintiff is demanding a jury trial and seeking compensatory damages.

If true, Glazer's claims would reveal a violation of both the Florida statute and Mexican regulations. Legally speaking, any product called tequila must be made in certain Mexican states and must be at least 51% blue agave. Costco definitely meets the first requirement; Kirkland Tequila is made by Corporate Distillery Santa Lucia, S.A. de C.V., a company based in the state of Jalisco, the heart of tequila country.

It's worth remembering that it isn't Costco's first lawsuit in recent memory. In 2024, Costco faced another class action lawsuit alleging deceptive online pricing, with customers being routed to more expensive warehouse shipping than their cheaper local stores. But, in January 2025, the plaintiff voluntarily dismissed the case after a court order to prove jurisdiction.

On the other hand, lawsuits have sometimes proven to be a big deal for Costco. One of the Kirkland Signature products that completely failed was partially done in by a lawsuit. Costco formerly sold sets of four golf balls, which a competitor alleged violated patent rights. Although the lawsuit was settled, it took a toll on the product, as did customer complaints of shoddy construction. It remains to be seen if Kirkland Tequila will suffer a similar fate.