Costco Sued Over ‘100% de Agave’ Label on Kirkland Brand Tequila

Costco Wholesale Corp. was accused in a proposed class action of deceptively labeling its Kirkland Signature brand tequila as “100% de Agave” despite using non-agave alcohol in the products.

The lawsuit “exposes a high-stakes deception at the heart of the growing and increasingly popular premium tequila market,” according to the consumer complaint filed Nov. 14 in the US District Court for the Western District of Washington.

Tequila labeling standards are strictly regulated, and the “100% de Agave” designation “signals authenticity, purity, and compliance” with American and Mexican standards, it said. “It is more than a technical term—it is a powerful ...