Costco is being sued for allegedly falsely advertising its Kirkland tequilas as 100% Blue Weber agave when they're actually not tequila at all.

A proposed class action lawsuit filed on October 31 in Florida claims Nuclear Magnetic Resonance testing confirmed the tequilas contained so much sugar they wouldn't qualify as tequila under Mexican or U.S. law.

The lawsuit states the tequilas "contain 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."

Translation: Costco allegedly sold something labeled as premium 100% agave tequila that contained alcohol from other sources. That's not tequila. That's just alcohol with tequila flavoring.

Why This Matters

Shoppers pay premium prices for spirits with the 100% Blue Weber agave designation. Without it, they might have bought a different product or paid less.

"If plaintiff and others similarly situated had known the truth of the ingredients in the products, they would not have purchased the products or would have paid less for them," the lawsuit states.

Nobody wants to pay premium tequila prices for something that isn't actually tequila.

What the Law Says

Mexican law requires tequila to contain at least 51% blue agave. Tequilas made with 100% blue agave are considered higher quality and command higher prices.

The lawsuit claims Costco violated laws in both Mexico and the United States because the tequila allegedly contains ethanol from other sources. Ethanol is alcohol created by fermenting plant sugars.

Tequila can only legally be made in Mexico, per the Denomination of Origin, which ensures the spirit is made from blue agave and produced in designated regions. This legal protection "safeguards the authenticity and quality of the Mexican spirit," according to Patrón.

Costco sells three types of Kirkland tequilas: Blanco, Reposado, and Añejo. All three remained available for purchase on Costco's website as of November 14.

The Testing Results

Nuclear Magnetic Resonance testing can detect the molecular composition of liquids and determine what plants the alcohol came from.

The testing allegedly showed Costco's Kirkland tequilas contained too much sugar and ethanol from non-agave sources. If true, bottles labeled "100% Blue Weber agave" contained significant amounts of alcohol from other plants.

That's not just misleading marketing. That's potentially violating federal alcohol regulations about what can legally be called tequila.

What the Lawsuit Seeks

The proposed class action accuses Costco of negligence, negligent misrepresentation, unjust enrichment, and violating Florida's Deceptive and Unfair Trade Practices Act.

The lawsuit also claims the mislabeled bottles violate the Federal Alcohol Administration Act, which regulates the alcohol industry and protects consumers.

Attorneys for plaintiff Ariel Glazerare of Florida are seeking a jury trial and class certification.

The Kirkland Problem

Kirkland is Costco's house brand, known for offering quality products at lower prices than name brands. The tequilas are popular precisely because they're marketed as 100% Blue Weber agave at a fraction of premium brand prices.

If the lawsuit's allegations are accurate, customers paid for premium tequila and received adulterated spirits instead. That undermines the entire value proposition.

Premium tequila drinkers care about the 100% agave designation. It affects taste, quality, and hangovers. Tequilas made with 100% agave typically cause less severe hangovers than those mixed with other alcohols.

Selling non-agave alcohol as 100% agave tequila isn't just false advertising—it's potentially violating international trade agreements and federal alcohol regulations.

What Happens Next

The lawsuit needs class certification before proceeding. If certified, anyone who bought Kirkland tequila labeled as 100% Blue Weber agave could potentially join the class.

Costco will likely deny the allegations and possibly challenge the NMR testing methodology. They might argue the testing was flawed or misinterpreted.

The case could settle out of court if Costco decides fighting isn't worth the bad publicity. Or it could go to trial if they believe they can prove the tequila meets legal standards.

For now, the Kirkland tequilas remain on sale. No recall issued. Costco hasn't pulled products from shelves or website.

For Consumers

If you bought Kirkland tequila thinking you were getting 100% Blue Weber agave, you might have a claim if this lawsuit succeeds. But that's years away.

Class action lawsuits take forever to resolve. If successful, affected customers typically receive small settlements—sometimes just a few dollars per bottle, sometimes more depending on damages.

The real impact might be forcing Costco to either reformulate the tequila to actually be 100% agave or relabel it accurately so consumers know what they're buying.

Until then, buyer beware. If the lawsuit's allegations are true, that Kirkland tequila at bargain prices might be bargain-priced for a reason. Not because Costco negotiated a great deal on premium tequila, but because it's not premium tequila at all.

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